GFS Labour Rat

31 July 2018

Gold Fields of Shamva (Private) Limited

 Modernisation of GFS and Labour Rationalisation

Gold Fields of Shamva (Private) Limited (‘GFS’), the owner and operator of Shamva 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, GFS is now in a strong position to invest in its gold mining operations. GFS has a JORC-compliant resource of 2.5 million ounces of gold and there is potential to develop the mine into a greater volume operation.

GFS will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence bulk mining and mining at surface. These modernisation activities will lead to a significant reduction in costs. This programme will be run by Thomas Lusiyano, Managing Director (Acting), alongside an experienced team at GFS, who will be engaging with all stakeholders.

At GFS, underground mining will be suspended while redesign and development of underground operations takes place. Production will commence from mining at surface with current processing operations. Two new flotation-based processing plants will be constructed. The first 150,000 tonne per month plant will be built by 2020 and process ore from near-surface. The second 100,000 tonne per month plant will be commissioned in 2022 and will be supplied from underground ore after the sinking of a new shaft. New Tailings Storage Facilities and infrastructure upgrades will also be required.

Current planned investment for these expansion plans is approximately US$150m and this will increase annual production to 150,000 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, GFS expects to reduce the number of employees. These measures have been implemented in order to reduce costs, increase productivity, and ensure the long-term viability of GFS for the benefit of all stakeholders.