Driefontein and Kloof Gold Mines in South Africa have been marked to receive a large cash injection of R4,7-billion, Gold Fields Limited said on Thursday.
The investment is pegged for the deepening of Gold Field’s flagship operations and will access an additional 10,8-million ounces of gold below the current infrastructure.
Gold Fields CEO Ian Cockerill said: ”South Africa remains one of the premier gold mining destinations in the world. In global gold mining parlance, South Africa is elephant country! These investments will extend our South African production profile to at least 2035.”
The investment will be funded from internal sources, made available through Gold Fields’ current strong cash flow generation.
Shaft sinking will commence in October 2007 and is expected to be completed late in 2011, after which it will take a further 12 months to equip the proposed 200 000 tonne per month shaft.
Gold Fields is one of the world’s largest unhedged gold producers, with annual gold production of about 4,2-million ounces from mines in South Africa, Ghana, Australia and Venezuela, as well as a developing mine at Cerro Corona in Peru. – Sapa