Gold Fields Limited · JSE:GFI
Gold Fields — Energy and Mines (January 2016)
21 slides from Gold Fields's conference presentation, January 2016
Slide 1: Integrating Solar Power into Gold Fields' South Deep Mine
Integrating Solar Power into Gold Fields’ South Deep Mine DUNCAN STEVENS AND JULES KORTENHORST January 2016
Slide 2: Forward looking statements
Forward looking statements 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 document include
Slide 3: Overview
Overview Integrating solar power into Gold Fields’ mines: A case for collaborative leadership ● Background to Gold Fields ● Background to the Carbon War Room and the Rocky Mountain Institute (CWR-RMI) ● Gold Fields renewable energy commitments ● Case for collaboration with the CWR-RMI ● South Deep S
Slide 4: Background to Gold Fields
Background to Gold Fields Gold Fields Limited (GFL) ● Gold Fields Limited (GFL) is an unhedged, globally diversified producer of gold ● Eight operating mines in Australia, Ghana, Peru and South Africa as well two major development projects in Chile and the Philippines ● Attributable annual gold prod
Slide 5: Background to South Deep
Background to South Deep South Deep Mine ● Grid connected (Eskom), 95% of electricity from coal ● Energy spend is 13% of operating spend (Group 22%) ● Average load 55 MW, to peak at 75 MW ● Life of Mine: +70 years ● Global Horizontal Index (GHI) of 2 061 kWh/m2 To be the Global Leader in Sustainable
Slide 6: Background on CWR and RMI
Background on CWR and RMI Carbon War Room and Rocky Mountain Institute ● Carbon War Room (CWR) Non-profit founded in 2009 by Sir Richard Branson and likeminded entrepreneurs to accelerate adoption of business solutions that reduce CO2 emissionsat gigaton scale and advance the low carbon economy ● Ro
Slide 7: Sunshine for mines – the business case
Sunshine for mines – the business case 1) High Energy-Intensity Globally • Mining is very energy intensive – globally consuming 400 TWh annually • Energy is often the single largest operating expenditure for a mine – 30% avg • Energy intensity is steadily rising, driving costs up 2) Energy Security
Slide 8: Gold Fields commitment to renewable energy
Gold Fields commitment to renewable energy Supported by Top Management and an Enabling Environment Supported by Board and Group ExCo Strong and visible CEO Commitment Integrated Group Energy and Carbon Strategy Entrenched through our Group Energy & Carbon Policy and Guideline Included in Group Balan
Slide 9: Gold Fields commitment to renewable energy
Gold Fields commitment to renewable energy What Gold Fields is focused on Group BSC illustrates integrated thinking CEO, Executive and Senior Management remuneration is linked to the deliverables To be the Global Leader in Sustainable Gold Mining Energy and Mines | January 2016 9
Slide 10: Gold Fields visible commitments to RE and EE
Gold Fields visible commitments to RE and EE Group strategic renewable energy commitments ● Aiming for 20% renewable energy generation on average in all new mine developments ● Set 3-year regional carbon emission and energy efficiency targets to 2016 & revised targets till 2020 ● PV rooftop system t
Slide 11: Gold Fields and CWR-RMI collaboration
Gold Fields and CWR-RMI collaboration Why did Gold Fields chose to work with CWR-RMI? ● Global leader in business solutions to reduce carbon emissions & advance a low- carbon economy ● CWR-RMI mission is aligned with our vision ● We share the goal of supporting industry-wide change ● CWR-RMI has sup
Slide 12: CWR-RMI collaboration
CWR-RMI collaboration Why should other mining companies chose to work with CWR-RMI? ● Collaborative model – build consensus and “will-to-act” ● Unlock the potential – mining operations have cost-effective options for energy security, cost reductions, and meeting CSR/sustainability goals but limited
Slide 13: This collaborative engagement model proved vital
This collaborative engagement model proved vital From reviews and data collection, through solution design and decision making Design optimisation, not maximisation • Client clearly defined the • CWR-RMI conducted risk techno-economic studies, • CWR-RMI sought to • Understand the client with client
Slide 14: Moving from analysis to impact
Moving from analysis to impact CWR-RMI’s analytical & project development process Determine Model Baseline Determine Baseline and other Ideal Energy Scenarios Scenarios Mix RFI & Pre- RFP & Development & Qualification Selection Commissioning Energy and Mines | January 2016 15
Slide 15: Solar PV Procurement Process
Solar PV Procurement Process What We Did and Why • Stimulate the market and manage the information release to a manageable number • Screen non-serious players • Communicate the project specifications (clients needs) early enough EOI • Strict time-lines • Pre-qualification requirements provided to gu
Slide 16: The Outcomes
The Outcomes What are the outcomes thus far? Market Stimulation • Some of those proposals claim to meet EOI Eskom price parity today, and most trend favourably with inflation over the PPA term ~75 developers RFP • Energy storage technologies also appear to be on par with the current cost of diesel 2
Slide 17: Lessons learnt: Banking a captive PPA
Lessons learnt: Banking a captive PPA Considerations to determine economic & technical feasibility for a captive PPA Prevailing and Geography PPA Price Life of Mine Future Grid (Land & RE Expectations Energy Tariffs potential) Resource Load Profile Betting on IFRS intermittency ≠ Influences the Futu
Slide 18: Lessons learnt: Industry readiness
Lessons learnt: Industry readiness What we learned from the market ● Very strong interest for IPPs to work on captive PPAs with mining companies ● Grid parity demonstrates dropping price of solar technology ● Be open to innovative proposals – especially on the PPA structure (allows optionality) ● It
Slide 19: Way forward
Way forward The journey ahead CWR-RMI aims to repeat the experience of Gold Fields with additional firms ̵ We will expand our suite of services, to look at opportunities not only for integrating renewables onto off-grid mine sites or sites faced with grid instability, but also for mines exploring co
Slide 20: Way Forward
Way Forward The Journey Ahead ● The RFP evaluation process is underway ̵ Conducting technical and commercial reviews ̵ Hoping to conclude a viable PPA which meets key criteria ● Gold Fields is exploring possible further partnerships with CWR-RWI for Salares Norte, a remote gold project in the Atacam
Slide 21: To be the Global Leader in Sustainable Gold Mining
To be the Global Leader in Sustainable Gold Mining