Slide 1: Our Local Content Journey
Our Local Content Journey ALFRED BAKU Executive Vice President & Head of West Africa 12 June 2019
Slide 2: Gold Fields West Africa Region
Gold Fields West Africa Region Two operating mines, Tarkwa & Damang; 45% stake in Asanko Gold Mine • Includes 45% of Asanko Gold from August – December 2018. • TFIFR – Total Recordable Injury Frequency Rate Injuries per 1 million hours worked, including employees and contractors. • Net cash flow – c
Slide 3: 25 Years in Ghana
25 Years in Ghana Our Journey| Alfred Baku | 12 June 2019 3
Slide 4: Tarkwa Spend Analysis
Tarkwa Spend Analysis 1,200.00 Spend on Goods & Services Host Community Spend Spend (US$ Million) 1,000.00 27% 432.33 12% 800.00 7% 362.94 2016 2017 2018 600.00 Percentage of In-country Spend 330.06 269.12 400.00 117.36 39.61 78% 82% 84% 200.00 69.39 255.43 22.44 326.86 60.94 - 71.43 Foreign Procure
Slide 5: Damang Spend Analysis
Damang Spend Analysis 700.00 Spend on Goods & Services Host Community Spend Spend (US$ Million) 600.00 250.74 40% 500.00 279.77 8% 14% 400.00 2016 2017 2018 112.07 300.00 206.21 Percentage of In-country Spend 31.67 229.50 200.00 10.90 108.29 90% 90% 100.00 82% 29.03 131.60 23.29 - 23.31 Foreign Proc
Slide 6: Developing Key Local Suppliers (Genser)
Developing Key Local Suppliers (Genser) Aug 2015 – Phase 1 1 Jan 2017 – Phase 2 1 Jan 2018 – Phase 3 1 May 2019 – Phase 4 1 Aug 2019 – Phase 5 Final approval Commissioning Commissioning Commissioning Commissioning of PPA with Damang mine - 27MW Tarkwa mine - 42MW NG gas pipeline to Tarkwa control pa
Slide 7: Developing Key Local Suppliers (ZEN Petroleum)
Developing Key Local Suppliers (ZEN Petroleum) Fuel Depot Zen now supplies other major mines. Expanded its footprint 2018 across West Africa. Construction of 5 million litre world-class fuel farm with multiple satellite fuel depots at Tarkwa 2012 mine. Contract awarded to Zen Petroleum. Fuel supply
Slide 8: Developing Key Local Suppliers (Contract Mining)
Developing Key Local Suppliers (Contract Mining) 2016 Contract Award 2017 Contract Award Mining satellite pits – Damang Tailing Storage Facility Reinvestment Project (TSF) 5 at the Tarkwa Mine 2017 Contract 2018 Contract Award Far East Tailings Storage Tarkwa mine Facility (FETSF) Damang mine Our Jo
Slide 9: Developing Host Community Contractors
Developing Host Community Contractors 33-km Tarkwa-Damang road constructed by three host community companies: Wilhelm Jesus Open Doors Catrol Rehabilitated road Road before rehabilitation 33km Asphalt US$27M invested Our Journey | Alfred Baku | 12 June 2019 9
Slide 10: Capacity Building of Local Suppliers
Capacity Building of Local Suppliers 3 Next Steps Lowering interest 2 GFG Support rates Collaboration with Setting up local banks to offer supply manufacturing plants 1 Key Challenges chain financing solutions to Access to cheaper contractors sources of funding Supplier development Lack of exp
Slide 11: Expatriate Localisation
Expatriate Localisation Localisation compliance currently at 3.6%; below the legislated 6%. One expatriate position expected to be localised by end of 2019. This will reduce the number to 14. Further reduction from 39 to 15 by 2018. Significant reduction of expatriates from 73 to 39 by 2015. Localis
Slide 12: Host Community Employment
Host Community Employment 71% Supplier Jobs, Others, 1,998 545 Non-Mining Host Jobs, Community Business Partner 526 Jobs, Employees, 3,414 5,003 GFG Employees, 518 Our Journey | Alfred Baku | 12 June 2019 12
Slide 13: Social Investments
Social Investments Community development is central to our business Gives us social license to operate Gold Fields Ghana Foundation development framework Focuses on five thematic areas: US$60M invested in community 01 Education dev’t projects & programmes since 2005 02 Health 03 Agriculture 04 Infra
Slide 14: Shared Value Projects (Sports Stadium & Hospital)
Shared Value Projects (Sports Stadium & Hospital) Tarkwa Sports Stadium ● 10,400 roofed seating (currently seats 400 spectators) ● Dressing rooms for players and officials ● Press box and press conference area ● Fenced FIFA standard pitch ● Disabled access ● Wash rooms ● Floodlights, electronic scor
Slide 15: Shared Value Projects (Youth in Horticulture Production)
Shared Value Projects (Youth in Horticulture Production) Five-year programme; started in 2016 To create non-mining jobs for host community youths To enhance livelihoods Buyers & off-takers sourced YouHop beneficiary on his cabbage farm ACTUAL TARGETED Extension officers engaged 900 900 750 Credit un
Slide 16: Thank you
Thank you