Gold Fields Limited · JSE:GFI
Gold Fields — Energy & Mines World Congress 2019
17 slides from Gold Fields's conference presentation, Dec 2, 2019
Slide 1: Energising and Decarbonising Our Mines
ENERGISING AND DECARBONISING OUR MINES Energy & Mines World Congress, Toronto NICK HOLLAND 2ND December 2019
Slide 2: Forward Looking statements
Forward Looking statements Terms of use Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this docu
Slide 3: Global footprint
Global footprint Gold Fields Group (2018) • Listings on the JSE and NYSE • Total gold output >2Moz • Energy spend US$302m (22% of OPEX) • Energy spend per ounce US$146/oz • Electricity 1 300 GWh • Diesel 184 million litres West Africa region Mines: Tarkwa and Damang JV project: Asanko Gold Mine 680k
Slide 4: Energy challenges facing miners
Energy challenges facing miners The bigger picture Operational: Energy issues: Social & Regulatory: • More remote mines • Price volatility • Increasing ESG investor • Deeper and hotter • Availability of energy expectations mines • Reliability of energy • Increasingly stringent • Longer haulage suppl
Slide 5: Why climate change matters to us
Why climate change matters to us Gold has among the lowest GHG emissions intensity of major metals Physical risks: Financial risks: Social & regulatory risks: • Flooding of pits, • Upward pressure on • Carbon taxes infrastructure input costs (water, • Increasingly stringent • Drought conditions (3 e
Slide 6: Energy and carbon emissions in mining
Energy and carbon emissions in mining The truck fleet of the world’s mining industry produces about 68Mt CO₂ e- Mining industry: Gold mining sector: Gold Fields: • Energy spend ranges from • Emission sources in gold • Energy spend ~20% of 15% to 45% of input costs production: operational costs (15%
Slide 7: Our energy spend is a significant input cost
Our energy spend is a significant input cost Second largest cost item aside from our salary bill Gold Fields energy consumption and link to production and input costs 12 500 400 350 12 000 300 11 500 250 TJ 11 000 200 150 10 500 100 10 000 50 9 500 - 2014 2015 2016 2017 2018 Energy (TJ) Tonnes mined
Slide 8: Our journey
Our journey Gold Fields energy and carbon management strategy over the years 3 … to 2020: 2 Operational Integration ... from 2016: 1 • Secured energy supply – Implementation reliable, affordable, low- 2011 – 2015: carbon and dedicated Foundation • Implementing regional energy • Commenced with renewa
Slide 9: Our commitments to the journey
Our commitments to the journey Implementing an integrated energy and carbon management strategy Internal Strategies External Commitments Investing in energy efficiency initiatives Increase renewable energy in our energy mix (with 20% renewable energy for all new mines over LoM) Gold Fields integrate
Slide 10: Our carbon emission performance
Our carbon emission performance Our carbon emission footprint and reduction strategies Energy initiatives Gold Fields Scope1 – 3 CO2 emissions Our aspirational carbon emission reduction target of 800 kt CO2-e between 2017-2020 is equivalent to 60% of our 2018 Scope 1 and 2 emissions • Fuel switching
Slide 11: Our energy performance
Our energy performance Building resilience in our energy supply and diversifying our energy mix Group Energy Consumption Low carbon/renewable performance: • >150MW gas power plants installed • >40MW solar under assessment, 4MW installed, 7MW under construction • 18MW wind power under construction •
Slide 12: Gold Fields case studies 1
Gold Fields case studies 1 Renewable energy: reducing costs, reducing carbon emissions, improving security Agnew hybrid-grid (with EDL and ARENA): ̵ Secure electricity independence ̵ Solution: • 18MW through 5 wind turbines (2020) • 4MW solar plant (10,000 panels) • 13MW/4MWhr battery unit (2020) •
Slide 13: Gold Fields case studies 2
Gold Fields case studies 2 Renewable energy: reducing carbon emissions, improve security and saving money Salares Norte (project): ̵ Construction decision mid-2020 ̵ In the Atacama desert; No grid infrastructure ̵ High elevation creates challenges for thermal options ̵ Good conditions for solar powe
Slide 14: Gold Fields case studies 3
Gold Fields case studies 3 Gas a transitional energy source Gruyere gas power plant (with APA): ̵ 48MW gas power plant ̵ Gas delivered over a 200km buried pipeline ̵ Assessing optimisation with renewables Tarkwa and Damang gas turbines (with Genser): ̵ 2015: 100% reliant on grid ̵ 2018: 85% reliant
Slide 15: How can we energise the mine of the future
How can we energise the mine of the future Future opportunities in powering our mines Diversified Electrified: Gas: a key energy mix: Modular weaned off transition wind, gas, and More diesel fuel solar connected storage Energising and decarbonising our mines| Nick Holland | December 2019 15
Slide 16: What have we learnt
What have we learnt Mining energy supply and demand models are being disrupted ● Energy costs will continue to escalate and energy supply will remain under pressure ● Energy efficiency and renewables make for great business – lower cost and supply security ● Independence from the grid critical – mic
Slide 17: Thank you
Video link Thank you For queries: energy@goldfields.com