Nick Holland and Tim Rowland
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – The problems hampering the South Deep gold mine, which represents 70% of Gold Fields' gold reserves, should ease in the second half of 2015.
Gold Fields CEO Nick Holland said at the company’s presentation of 2014 mineral resources and reserves on Tuesday that every effort was being made to transition the world-class orebody west of Johannesburg, in Gauteng, to bottom-line delivery. (Also view the attached video captured by Creamer Media’s Mining Weekly Online).
“Clearly, we’ve got to get South Deep going,” Holland said during question time at the analyst and media presentation by group competent person Tim Rowland, who confirmed Gold Fields' 52-million-ounce gold reserve position for 2014.
Recalibration of the mine’s cost base had put it in a more favourable position and with the higher rand gold price compared with plan, getting to break even is not an impossible task, and that’s really what we’re trying to achieve by the end of next year,” Holland outlined, adding that the coyness of his response hinged on time being needed to put the correct building blocks in place to ensure sustainable steady state operation.
The new destress cut of 4.5 m by 4.5 m, which was still being modelled, was expected to get the go-ahead this year.
“But whether or not we will have done enough to warrant a decision by the end of this year is hard to tell. We’ve actually got to take this step by step so it might take longer for us to take a decision to roll that out across the mine.
“It may even require a number of pilot areas or we may implement it over an entire corridor as opposed to just one or two pilot areas, as is being done at the moment. But we’ll give more information on that by the middle of the year,” Holland said in response to JP Morgan mining analyst Allan Cooke.
Rowland reported at the presentation attended by Creamer Media's Mining Weekly Online that from a geological perspective, the South Deep orebody had been largely derisked.
The focus was now on getting confidence in the operational enablers and linking short-term delivery with the company’s longer-term goals for the very promising but currently concerning mine.
“Massive focus is on current operational performance and delivery. We have to have that against the backdrop of a strategic perspective to know where we are taking the mine towards ultimate steady state production,” Rowland said.
The board of technical experts brought together from around the world had begun a review of the mine’s geotechnical support regime. “That’s currently work in progress and once the pillar study and peer review is completed, we’ll be in a position to see if there is any need for revised regional support configurations,” Rowland added.
A number of issues had impacted South Deep, particularly over the last couple of years, and notice was given that its setbacks would extend into at least the first half of 2015.
“We’re feeling the brunt of that now. I think it’s going to be tough for while before we get over the hurdle, and the second half of this year should be a little bit better,” Holland commented.
Getting the basics right meant making sure the fleet was available, there was face to be mined, broken rock was cleaned and the voids were filled after mining had taken place.
“Those are the disciplines that we’re reinforcing at this stage,” Holland explained.