Gold Fields Limited · JSE:GFI
Gold Fields — Energy and Mines World Congress 2016
23 slides from Gold Fields's conference presentation, November 2016
Slide 1: The Role of Alternative Energy in Addressing Mining's Energy Challenges
ENERGY AND MINES WORLD CONGRESS THE ROLE OF ALTERNATIVE ENERGY IN ADDRESSING MINING’S ENERGY CHALLENGES: OUR EXPERIENCE TSAKANI LOTTEN MTHOMBENI Group Head of Carbon & Energy
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: Outline
OUTLINE Africa’s energy challenges Global trends in solar developments Gold Fields - who we are Our energy and carbon management journey What drives us The South Deep solar project Our experience with captive PPAs for renewables 1
Slide 4: Africa's Energy Challenges
AFRICA’S ENERGY CHALLENGES DIVERSITY IN MINERALS AND ENERGY RESOURCES Iron ore Uranium Diamond Aluminium Gold Copper Platinum Coal Phosphate Bauxite Hydroelectric Energy Project Coal Production Solar Energy Project Natural Gas Production Geothermal Energy Project Oil Production Wind Energy Project S
Slide 5: Africa's Energy Opportunities
AFRICA’S ENERGY OPPORTUNITIES DIVERSITY IN MINERALS AND ENERGY RESOURCES Home to 6 of the 10 World’s supplier of Africa’s challenges: Energy usage Mining energy Demand tied to top fastest growing raw materials Lack of energy peaked at 3.3% of demand set to triple commodity cycles economies infrastru
Slide 6: Global Trends in Solar PPAs
GLOBAL TRENDS IN SOLAR PPAS Global PV mid-price H1 2016 Chile Oct 2015: SolarPack South Africa Apr 2015: Scatec India Jan 2016: Fortum Peru Feb 2016: Enel Mexico Mar 2016: Enel Dubai May 2016: Masdar 0 10 20 30 40 50 60 70 80 90 100 US$ / MWh Source: Bloomberg New Energy Finance
Slide 7: Latest Global Developments on Solar PV PPA Prices
LATEST GLOBAL DEVELOPMENTS ON SOLAR PV PPA PRICES U.S: 5-8c/kWh Mexico: 4.5c/kWh India: 2015: 40 year PPA 6-8c/kWh Apr 2016 H1 2016 Peru: 4.8c/kWh UAE: 3c/kWh Feb 2016 May 2016 Zambia: 6c/kWh Chile: 2016: Flat rate 7.1c/kWh for 25 years 2015 SA: 7c/kWh 2015: 20 year PPA APPROACHING PRICE-BOTTOMING L
Slide 8: Observations on Latest Global Developments on Solar PV PPA Prices
OBSERVATIONS ON LATEST GLOBAL DEVELOPMENTS ON SOLAR PV PPA PRICES High solar resource Developing nations How long before we Even with oil at Innovative PPA regions harnessing catching up see prices below $50/bbl, solar structures energy $20/MWh? appears to be thriving
Slide 9: Background to Gold Fields
BACKGROUND TO GOLD FIELDS GOLD FIELDS LIMITED (GFL) OUR VISION IS TO BE THE ‘GLOBAL LEADER IN SUSTAINABLE GOLD MINING’ An unhedged, Operations in 4 Annual gold Listed on the JSE, • Carbon and energy globally diversified countries: Australia, production of NYSE and SWX management are key producer of
Slide 10: Gold Fields' Energy and Carbon Profile
GOLD FIELDS’ ENERGY AND CARBON PROFILE OUR 2015 ENERGY AND CARBON FOOTPRINT GROUP WEST Energy usage 11 240 TJ AFRICA Energy spend US$311m (21% of OPEX) REGION Carbon emissions 0.59 tCO₂-e/oz Energy use 5 141 TJ (46% of group) Energy spend US$163m Carbon emissions 0.49 tCO₂-e/oz AMERICAS REGION Energ
Slide 11: What Drives Us
• Development of a climate viewer tool WHAT DRIVES US • Climate change vulnerability risk assessments ENERGY SECURITY, ENERGY COSTS AND THE GLOBAL • Support the climate change statement CHALLENGE OF CLIMATE CHANGE ADAPTING TO THE Signed the Paris Pledge for Action PHYSICAL IMPACTS OF CLIMATE CHANGE
Slide 12: How Gold Fields Turns Commitments into Action
HOW GOLD FIELDS TURNS COMMITMENTS INTO ACTION SUPPORTED BY TOP MANAGEMENT AND STRATEGIC TO THE GROUP STRATEGY KPIs AND POLICIES TARGETS • Supported by Board and • Strong visible CEO commitment • Included in Group Group Exco Performance Scorecards • Integrated Energy and Carbon (CEO to Operation) • S
Slide 13: Gold Fields' Energy Initiatives
GOLD FIELDS’ ENERGY INITIATIVES TAKING A LONG-TERM VIEW
Slide 14: Solar Panels at GFL Johannesburg Head Office
SOLAR PANELS AT GFL JOHANNESBURG HEAD OFFICE COMMISSIONED IN NOVEMBER 2015 Reduction in grid Reduction in grid electricity consumption electricity costs by 36% by 60% between between H1 2015 and H1 2015 and H1 2016 H1 2016
Slide 15: 24 MW Gas-Powered Plant at Granny Smith Mine, Australia
Commissioned a 24 MW gas-powered plant at our Granny Smith mine, Australia PPA model
Slide 16: New Gas Plants at Tarkwa and Damang Mines, Ghana
Commissioning of new gas plants in November by Genser Power at our Tarkwa and Damang mines in Ghana to supply 40 MW PPA model
Slide 17: Commitment to 20% Renewable Energy at Our New Mines
Commitment to 20% renewable energy at our new mines Salares Norte, Chile
Slide 18: IPP Appointed for 40MW Solar PV Plant at South Deep
Appointment of an IPP for the 40MW solar PV plant at the South Deep mine in South Africa
Slide 19: Background to the South Deep PV Project
BACKGROUND TO THE SOUTH DEEP PV PROJECT SOUTH DEEP MINE AND THE PROCUREMENT PROCESS Grid connected Energy spend is Average load 55 MW, Life of Mine: Global Horizontal (Eskom), 95% of 13% of operating to peak at 80 MW +70 years Index (GHI) of electricity from coal spend 2 061 kWh/m2
Slide 20: South Deep PV Project and the Procurement Process
BACKGROUND TO THE SOUTH DEEP PV PROJECT SOUTH DEEP MINE AND THE PROCUREMENT PROCESS • BMO model under a ~20 year PPA • Some 150 000 panels to be installed • ~100 000 tCO₂-e / year avoided • Socio-economic initiatives for our host communities: EOI • Job creation > 75 RFP • Skills development develope
Slide 21: Considerations for Captive Renewable PPAs in Africa
CONSIDERATIONS FOR CAPTIVE RENEWABLE PPAs IN AFRICA BASED ON OUR AFRICAN Prevailing and Life of Mine Future Grid Geography (Land PPA Price EXPERIENCE ON REACHING AN & RE potential) Expectations ECONOMIC AND TECHNICAL Energy Tariffs FEASIBILITY FOR A CAPTIVE PPA Resource Load Profile Betting on Futur
Slide 22: Summary
SUMMARY RENEWABLES HAVE A ROLE IN THE MODERNISATION OF AFRICA’S ENERGY SUPPLY MIX Security of supply LoM uncertainty Industry must be part of Raising capital can be is key for the could be a driver for the solution to Africa’s difficult and/or expensive mining industry innovation energy challenges d
Slide 23: Energy and Mines World Congress, Toronto - November 2016
ENERGY AND MINES WORLD CONGRESS TORONTO - 22 NOVEMBER 2016 THE ROLE OF ALTERNATIVE ENREGY IN ADRESSING MINING’S ENERGY CHALLENGES: OUR EXPERIENCE TSAKANI LOTTEN MTHOMBENI Group Head of Carbon & Energy tsakani.mthombeni@goldfields.com +27 11 652 9700