FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of November 2007
Commission File Number 1-31318
Commission File Number 1-31318
Gold Fields Limited
(Translation of registrant's name into English)
24 St. Andrews Rd.
Parktown, 2193
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
cover Form 20-F or Form 40-F.
Form 20-F..x... Form 40-F.....
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ________
permitted by Regulation S-T Rule 101(b)(1): ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ________
permitted by Regulation S-T Rule 101(b)(7): ________
Indicate by check mark whether by furnishing the information contained in this Form,
the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..x...
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
connection with Rule 12g3-2(b): 82- ________
Directors: A J Wright (Chairman), I D Cockerill
†
(Chief Executive Officer), K Ansah
#
, A Grigorian°, N J Holland
†
(Chief Financial Officer), G Marcus,
J M McMahon
†
, J G Hopwood, D M J Ncube, R L Pennant-Rea
†
, P J Ryan, T M G Sexwale, C I von Christierson
†
British,
#
Ghanaian, °Russian
Corporate Secretary: C Farrel
Gold Fields Limited
Reg. 1968/004880/06
24 St Andrews Road
Parktown, 2193
24 St Andrews Road
Parktown, 2193
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 644-2400
Fax +27 11 484-0639
www.goldfields.co.za
Fax +27 11 484-0639
www.goldfields.co.za
Nerina Bodasing
Tel
Tel
+27 11 644-2630
Fax
+27 11 484-0639
Mobile 082 940 7505
Nerina.bodasing@goldfields.co.za
Enquires
Willie Jacobsz
Tel
Tel
+27 11 644-2460
Fax
+27 11 484-0639
Mobile 082 493 1377
Williej@goldfields.co.za
MEDIA RELEASE
GOLD FIELDS ANNOUNCES A DELAY AND AN
INCREASE IN CAPITAL COST FOR THE CERRO
CORONA PROJECT IN PERU
SEE TELECONFERENCE DETAILS BELOW
Johannesburg, Thursday, 15 November 2007. Gold Fields La Cima,
which is 80.72% owned by Gold Fields Limited (“Gold Fields”) (NYSE,
JSE, DIFX: GFI), today announced a four month delay and a revised
capital forecast for the Cerro Corona gold/copper project in Peru.
which is 80.72% owned by Gold Fields Limited (“Gold Fields”) (NYSE,
JSE, DIFX: GFI), today announced a four month delay and a revised
capital forecast for the Cerro Corona gold/copper project in Peru.
The construction costs for the project was previously estimated at
approximately US$343 million and the treatment of ore was scheduled
to commence early in the March quarter 2008.
approximately US$343 million and the treatment of ore was scheduled
to commence early in the March quarter 2008.
The construction costs has now been revised to US$421 million, which
includes an additional contingency of US$20 million, and the treatment
of ore is now scheduled to commence towards the middle of the June
quarter 2008.
includes an additional contingency of US$20 million, and the treatment
of ore is now scheduled to commence towards the middle of the June
quarter 2008.
The delay is mainly due to two issues:
•
Deficient progress on the construction of the tailings
management facility (TMF) caused by poor rock quality in the
project quarries, and inadequate material delivery rates
required for the construction of the TMF embankment; and
project quarries, and inadequate material delivery rates
required for the construction of the TMF embankment; and
•
Underperformance over the past two months by several
contractors responsible for the structural and mechanical
installation of the concentrator.
installation of the concentrator.
Commenting on the announcement, Ian Cockerill, Chief Executive
Officer of Gold Fields, said:
Officer of Gold Fields, said:
“While we are disappointed with the delay and the increased
construction costs, Cerro Corona remains a robust project and will
make a significant contribution to the future of Gold Fields. We have
thoroughly reviewed every facet of this project and I am confident that
the required steps have been taken to ensure completion within the
revised project schedule and budget.”
construction costs, Cerro Corona remains a robust project and will
make a significant contribution to the future of Gold Fields. We have
thoroughly reviewed every facet of this project and I am confident that
the required steps have been taken to ensure completion within the
revised project schedule and budget.”
The first significant cause of the delay is the recent poor progress in
the construction of the TMF, which was previously highlighted as the
greatest risk to the project cost and schedule. Clearing and preparation
the construction of the TMF, which was previously highlighted as the
greatest risk to the project cost and schedule. Clearing and preparation
2
of the embankment footprint was completed in June 2007 and construction of the various zones in
the embankment commenced in early July. The materials required for the construction of the
embankment, which are sourced from quarries on the project site, must meet strict geotechnical,
geochemical and structural standards, some requiring significant processing to generate proper size
gradations. Two crushing and screening plants have been erected on-site for this purpose. Since the
commencement of the construction of the embankment in early July, production of acceptable
construction material has been substantially slower than anticipated due to poor rock quality
encountered in the quarries, and a slower than expected ramp up in the optimization of the crushing
and screening plants. Both of these factors have now been incorporated into a revised project
schedule, leading to the delay in the completion of the Project.
the embankment commenced in early July. The materials required for the construction of the
embankment, which are sourced from quarries on the project site, must meet strict geotechnical,
geochemical and structural standards, some requiring significant processing to generate proper size
gradations. Two crushing and screening plants have been erected on-site for this purpose. Since the
commencement of the construction of the embankment in early July, production of acceptable
construction material has been substantially slower than anticipated due to poor rock quality
encountered in the quarries, and a slower than expected ramp up in the optimization of the crushing
and screening plants. Both of these factors have now been incorporated into a revised project
schedule, leading to the delay in the completion of the Project.
The second contributing factor to the delay is poor construction efficiencies achieved over the past
two months by several contractors responsible for the construction of the concentrator. Despite an
acceleration plan developed to complete the construction of the concentrator in December 2007,
certain tasks were not timely completed in the last eight weeks, particularly with regards to the
completion of critical early commissioning areas of the plant. This has led to knock on delays to the
electrical contractor, hence the overall impact on completion timing.
two months by several contractors responsible for the construction of the concentrator. Despite an
acceleration plan developed to complete the construction of the concentrator in December 2007,
certain tasks were not timely completed in the last eight weeks, particularly with regards to the
completion of critical early commissioning areas of the plant. This has led to knock on delays to the
electrical contractor, hence the overall impact on completion timing.
There are four main causes of the increase in construction costs:
1.
The delay in the completion of the Project attracts significant additional costs in terms of
management and engineering personnel, as well as attendant indirect or support costs such as
the maintenance of the remote onsite camp and other services such as bussing and meals.
the maintenance of the remote onsite camp and other services such as bussing and meals.
2.
An increase in the construction costs for the TMF due to higher unit rates for mining and crushing
of construction materials.
3.
Poor ground conditions have been encountered in the construction of the various facility platforms
as well as mine and access road construction. This has necessitated additional cut and fill
activities to ensure the stability of the various structures.
activities to ensure the stability of the various structures.
4.
Continued escalation of commodity based products, such as electrical cabling and power lines as
well as the piping and mechanical and electrical components of the tailing management systems,
has had a significant impact on the overall cost of the project.
has had a significant impact on the overall cost of the project.
The Cerro Corona gold copper project is located 80km from the City of Cajamarca in the highlands of
northern Peru. A decision was taken to commence with this project in January 2006 following
approval of the Environmental Impact Assessment in December 2005.
northern Peru. A decision was taken to commence with this project in January 2006 following
approval of the Environmental Impact Assessment in December 2005.
The Project involves the development of a single surface mine producing 6.2 million tons per annum
(mtpa) of ore at a life of mine stripping ratio of 0.58. This ore will be treated in a conventional milling
and sulphide flotation concentrator treating 6.2 mtpa of ore and producing between 100,000 and
140,000 tons per annum of copper and gold containing concentrate, which will be custom treated at
smelters in Japan, Korea and Europe.
(mtpa) of ore at a life of mine stripping ratio of 0.58. This ore will be treated in a conventional milling
and sulphide flotation concentrator treating 6.2 mtpa of ore and producing between 100,000 and
140,000 tons per annum of copper and gold containing concentrate, which will be custom treated at
smelters in Japan, Korea and Europe.
The Project currently has reserves of some 3.2 million ounces of gold and 1,089 million pounds of
copper, equivalent in total to some 5.9 moz of gold equivalent. Resources are 5.0 million ounces of
gold and 1,869 million pounds of copper*.
copper, equivalent in total to some 5.9 moz of gold equivalent. Resources are 5.0 million ounces of
gold and 1,869 million pounds of copper*.
Average life of mine metal production is projected to be some 140,000 ounces of gold and 27,000
tons of copper per annum, though production levels will be somewhat higher in initial years due to
high grades encountered in the shallow portions of the pit.
tons of copper per annum, though production levels will be somewhat higher in initial years due to
high grades encountered in the shallow portions of the pit.
Cash costs in the first four years of the mine life are projected to be between US$300 and US$330
per gold equivalent ounce in real terms and based on current market conditions.
per gold equivalent ounce in real terms and based on current market conditions.
3
The cost trends that have been seen in construction of the TMF, discussed earlier, have been
projected in the estimated life of mine capital cost for this facility and are expected to increase life of
mine capital costs from approximately US$10 per ounce to US$30 per ounce of gold equivalent
production. Work remains underway to develop alternative methods for managing the tailing, with a
view to improving this cost.
projected in the estimated life of mine capital cost for this facility and are expected to increase life of
mine capital costs from approximately US$10 per ounce to US$30 per ounce of gold equivalent
production. Work remains underway to develop alternative methods for managing the tailing, with a
view to improving this cost.
*Reserves reported at 31 December 2006, using prices of US$500/oz gold and US$1.25/lb copper
and resources using prices of US$650/oz gold and US$1.75/lb copper.
and resources using prices of US$650/oz gold and US$1.75/lb copper.
ends
TELECONFERENCE DETAILS
Slides available on website at www.goldfields.co.za
For Johannesburg: 16:45
For United Kingdom: 14.45 hours GMT
For Europe: 15:45 hours, European time
For North America: 09:45 a.m., Eastern time
DIAL IN NUMBERS
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Toll:
011 535 3600
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0800 200 648
USA
Toll:
1 412 858 4600
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1800 860 2442
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CONTACTS
Willie Jacobsz
Nerina Bodasing
Francie Whitley
Phone: 27 11 644 2460
Phone: 27 11 644 2630
Phone: 27 11 644 2505
Fax:
27 11 484 0639
Fax:
27 11 484 0639
Fax:
27 11 484 0639
williej@goldfields.co.za
Nerina.Bodasing@goldfields.co.za
Franciew@goldfields.co.za
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: 15 November 2007
GOLD FIELDS LIMITED
By:
Name:
Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs
Title: Senior Vice President: Investor
Relations and Corporate Affairs