TORONTO (miningweekly.com) – South Africa's Gold Fields is aiming to produce some 60% of its gold from mines outside its home country within five years from now, CEO Nick Holland said on Tuesday.

But he added that South Africa will remain an important platform and base for the Johannesburg-based firm.

“We believe in not having all of our eggs in the one basket,” Holland said at the BMO Capital Markets Global Metals and Mining conference, under way this week in Florida.

South Africa currently accounts for about 58% of Gold Fields' total production, compared with as much as 65% two years ago.

The company's other main operating regions are South America, West Africa and Australasia.

However, Holland dismissed the idea that Gold Fields wants to reduce its South African exposure because of mounting cost pressures in the country.

Despite bad press over power supply and costs, labour, a strong currency and other issues, South Africa does not rank especially high the global 'cost curve', he asserted.

“There is a perception that costs in South Africa are escalating at a higher rate than everywhere else.

“Power increases are an issue across the globe, that I can tell you, it's not just South Africa,” he asserted.

“I believe that you need to look at the entire cost curve, and you will find that South Africa is right in the middle.”

SOUTH DEEP

Gold Fields is making good progress on the expansion at the South Deep mine, and actually plans to start the ventilation shaft deepening in just two weeks time, Holland reported.

The shaft deepening is a critical milestone towards getting South Deep up to the targeted 750 000 oz/y of gold, he said.

“That will be finished in about two and a half years, and then South Deep will have the available hoisting capacity to underpin its build up to 330 000 t.

Construction of a new tailings dam is already under way, and the plant expansion will begin in the second half of 2010, he said.

South Deep is expected to reach a production rate of 750 000 oz/y in 2014, and should continue between there and 800 000 oz/y for some 50 years, making it a big part of Gold Fields' growth plans.

Cash costs are forecast in the region of $470/oz to $480/oz.