GFM Labour Rat

31 July 2018

Gold Fields of Mazowe (Private) Limited

Modernisation of GFM and Labour Rationalisation

Gold Fields of Mazowe (Private) Limited (‘GFM’), the parent company of Mazowe Mine, Zimbabwe, would like to announce the modernisation and re-engineering of its operations, along with labour rationalisation.

Due to recent political changes and renewed confidence in Zimbabwe, GFM is now in a strong position to invest in its gold mining operations. GFM has a JORC-compliant resource of 1.8 million ounces of gold and there is the potential to develop the mine into a greater volume operation. This programme will be run by Joseph Chifamba, Managing Director (Acting), alongside an experienced team at GFM, who will be engaging with all stakeholders.

GFM will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence volume mining and mining at surface. These modernisation activities will lead to a significant reduction in costs. Underground mining will be suspended and accelerated development will be carried out while production takes place from the newly commissioned 60,000 tonnes per month sands plant. In 2019 a crushing circuit will be installed to convert the sands plant to process hard ore. Underground mining will resume in 2020, ramping up to capacity of 65,000 tonnes per month by 2021. Alongside these operational changes a comprehensive surface and underground exploration will be ongoing.

Current planned investment for these expansion plans is approximately US$110m and this will increase annual production to 93,000 ounces. Bankable feasibility studies are currently underway.

Alongside the mine reengineering and suspension of underground mining, there will be a rationalisation of labour. A number of positions will be placed on shifts/short time while reviews of operations are underway. In addition, as a result of the modernisation programme and subsequent mechanisation of operations, GFM expects to reduce the cost of labour to production. These measures have been implemented in order to reduce costs, increase productivity, and ensure the long-term viability of GFM for the benefit of employees and all stakeholders.