Name of the Project
South Deep gold mine expansion.

Location
Gauteng, South Africa.

Client
Gold Fields.

Project Description
South Deep is a fully mechanised underground mine, extracting a wide multiple band reef at depths of between 2 000 m and 3 000 m below surface. The extraction of such deep-level, wide reefs have not been totally mechanised elsewhere in the world. The production methods used at the mine are, therefore, unique and differ markedly from the labour-intensive mining method traditionally applied in underground mines in South Africa.

The project comprises a main shaft and a ventilation shaft – collectively referred to as the Twin Shaft complex, which will have a combined hoisting capacity of 370 000 t/m of ore.

The main shaft was completed in 2004 and comprises a single drop to a depth of 2 995 m.

The ventilation shaft has been deepened from 2 760 m to about 2 950 m and is fully equipped with ore-storage silos and conveyor belts at shaft bottom, a new rock winder and new headgear.

The mine’s headgear at the vent shaft was completed in 2011 using one of the largest fabricated steel headgear frames in the world.

The South Deep metallurgical plant, which was commissioned in November 2012, has also been expanded and has increased processing capacity from 220 000 t/m to 330 000 t/m.

From 2010 to 2012, the mine completed the construction of the centralised tailings storage facility, developed and installed infrastructure around the shaft systems and changed to full plant tailings backfill for increased production levels. The backfill plant was commissioned in early 2012.

The South Shaft complex will add an additional 120 000 t/m of hoisting capacity to the mine, bringing the total hoisting capacity to 450 000 t/m.

The South Deep operation had a mineral resource of 69.8-million ounces as at December 31, 2014, and a mineral reserve of 34.9-million ascertained ounces, which will give the operation a life-of-mine until about 2087.

Jobs to be Created
Most of the critical skill positions identified at the start of 2015 have now been filled, with a limited number of specialist skill positions unfilled as yet.

Net Present Value/Internal Rate of Return
Not stated.

Value
An estimated R28-billion has been invested to date.

Duration
A timeline for the roll-out to steady-state production is still being developed and will be presented to the board in February 2017.

Latest Developments
Gold Fields CEO Nick Holland has outlined how South Deep has managed to get ahead of its business plan for the first time in eight years.

South Deep has reached the point of honouring its full mining value chain with on-the-go ground support, simultaneous backfilling of the voids created, an extension of mechanising to hanging wall and side wall drilling, and mesh support installation right up to the face.

Under the new high-profile mining method, this year’s production guidance from the mine has been increased to 289 000 oz.

Heavy investment in fleet has resulted in half of the 114 category-one drill rigs, loaders and trucks being no older than 15 months and put to work within the new 5 m x 5 m cut as end-to-end production enhancers.

An update of the long-term production and cost outlook will be given at an investor day on February 17, which will include an underground visit.

Key Contracts and Suppliers
Redpath (backfill piping, battrice panel installation and replacing the South Shaft steelwork); Newrack (secondary support); TWP (metallurgical plant design); AEL Mining Services (supply of explosives for blasting) Atlas Copco and Sandvik (suppliers of heavy mobile equipment and spares).

Previous contractors and suppliers:
Murray & Roberts Cementation (mine development and shaft deepening); Wilson Bayly Holmes-Ovcon (WBHO) and Wade Walker (tailings dam); MM&G (steelwork fabrication); Steel Services and Allied Industries, Hatch and Cadhouse Design Enterprises (ventilation shaft headgear); Howden Africa (commissioning of main surface-ventilation fans) and Sarens South Africa and Crane Corporation (overhead crane for the ventilation shaft headgear).

On Budget and on Time?
The project is on budget.

Contact Details for Project Information
Gold Fields VP corporate affairs Sven Lunsche, tel +27 11 562 9763 or email media@goldfields.co.za.
Redpath, tel +27 11 974 2051.
TWP, tel +27 11 218 3000, fax +27 11 218 3100 or email twpinfo@twp.co.za.
AEL Mining Services, tel  +27 11 606 0000.
Atlas Copco, tel +27 11 821 9000.
Sandvik, tel +27 11 929 5300.

Previous contractors and suppliers:
Murray & Roberts Cementation, tel +27 11 201 5000.
MM&G, tel +27 11 914 4740.
Wade Walker, tel +27 11 466 0377.
WBHO, tel +27 11 321 7200, fax +27 11 887 4364 or email wbho@wbho.co.za.
Steel Services and Allied Industries, tel +27 18 787 2059 or fax +27 18 787 3416.
Hatch, tel +27 11 239 5300 or fax +27 11 239 5790.
Cadhouse Design Enterprises, tel + 27 16 429 1643 or email info@cadhouse.co.za.
Howden Africa, tel +27 11 240 4000, fax +27 11 493 0545 or email enquiries@howden.co.za.
Sarens South Africa, tel +27 11 861 3800, fax +27 11 861 3899 or email info@sarenssa.co.za.