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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“El Nuevo Rostro de la Minería”
INTEGRATEDREPORT2015
2
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Content and GRI Methodology application: Ana Lucía PintoGraphic Design: Fabiola Laguna
3
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“El Nuevo Rostro de la Minería”
4
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Índice5 Statement of Responsibility
10 Letter from the Chairman of the Board12 General Scope of the Report21 Gold Fields La Cima22 Who we are24 Mission, Vision and Corporate Values26 Operations27 • CerroCoronaMiningUnit28 • CerroCoronaProductionProcesses30 • OperativeEfficiency30 • ProductionResults31 • ReservesandResources31 • NextSteps
33 Gold Fields La Cima S.A. Growth34 Gold Fields La Cima in Figures 34 Commercial Management35 Gold Fields Share Capital35 Dividend Payment Policy36 2015 Dividend Payment36 Shareholding Structure37 2015 Prizes and Awards 38 Highlights
41 Good Corporate Governance42 Code of Ethics43 Board44 Executive Committee45 Management Committees
47 Relationship with Our Stakeholders48 Channels for Dialogue with Our Stakeholders 51 Institutions in which We Participate 52 Cultural Events We Support
55 Impacts, Risks and Opportunities56 General Approach to Impacts, Challenges and Opportunities
Related to Economic, Social and Environmental Issues57 Strategic Goals of Safety, Occupational Health and Environment
Integrated Policy57 Integrated Management System (SSYMA)
59 Safety and Occupational Health60 Committee on Safety and Health at Work61 Culture of Prevention62 Occupational Health63 Next Steps
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
65 Social Responsibility Management66 Our team67 • StrategicGoals68 • WorkforceStructure70 • SocialBenefitsBeyondtheLaw72 • Compensations72 • WorkRelations72 • TalentManagement75 • PerformanceManagement75 • YouthTalentProgram75 • WorkEnvironment75 • HealthandSocialWelfare76 • InternalCommunication79 Our suppliers and contractors80 • PromotionofLocalEmploymentandLocalCompanies80 • MonitoringofLaborObligationsFulfillment81 • ProgramofContinuousImprovement81 • EnvironmentalManagementbySuppliersandContractors81 • NextSteps82 Environmental management84 • 2015EnvironmentPlanGoalsofCerroCorona84 • EfficientWaterManagement85 • EnergySavingProgram86 • MonitoringandEnvironmentalControlPrograms87 • Awareness and Preparedness for Emergencies at Local Level
Program(APELL)89 • EnvironmentalManagementofSalaverryPort’sWarehouse89 • MineClosurePlan89 • ManagementofEnvironmentalLiabilities90 • 2015EnvironmentalPerformanceIndicators92 • SectorialGRIIndicatorsforMining93 • EnvironmentalLicensesandPermits93 • InternalAudits93 • NextSteps94 Social management94 • SocialResponsibilityApproach96 • LineNº1:StrategicManagement98 • LineNº2:SocialViability
101 • LineNº3:CorporatePositioning103 • LineNº4:SocialDevelopment113 • Nextsteps
115 Financial Information163 Annexes164 GoldFieldsLaCimaS.A.OrganizationalChart166 LicensesandPermits170 GRItableofContents172 GoldFields2015GRIPerformanceIndicators
StatementofResponsibility
ThisdocumentcontainsaccurateandsufficientinformationinrelationtoGold Fields La Cima S.A.businessdevelopmentduring2015.Notwithstandingitsresponsibilitytotheissuer,theundersignedare
responsibleforitscontentinaccordancewithapplicablelegalprovisions.
Lima,April2016
Ernesto Balarezo ValdezCEO
Germán Roberto Polack BelaúndeChairman of the Board
GP5008 Issue 4
ASSURANCE STATEMENT
SGS DEL PERU S.A.C’S STATEMENT ON SUSTAINABILITY ACTIVITIES IN THE “INTEGRATED ANNUAL REPORT GOLD FIELDS LA CIMA S.A. 2015” (GOLD FIELDS). NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION
SGS del Perú was commissioned by Gold Fields to conduct an independent assurance of the “Integrated Annual Report Gold Fields La Cima S.A. 2015”. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the 2015 text, and data in accompanying tables, contained in this report.
The information in the “Integrated Report Gold Fields La Cima S.A. 2015” and its presentation are the responsibility of the directors and the management of Gold Fields. SGS del Perú has not been involved in the preparation of any of the material included in the “Integrated Annual Report Gold Fields La Cima S.A. 2015”. Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification with the intention to inform all Gold Fields’ stakeholders. The SGS protocols are based upon internationally recognized guidance, including the Principles contained within the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2013) and the assurance standard ISAE 3000. These protocols follow differing options for Assurance depending the context and capabilities of the Reporting Organization.
This report has been assured at a limited level of scrutiny using our protocols for evaluation of content veracity and the alignment to the Global Reporting Initiative Sustainability Reporting Guidelines (G4 2013).
The assurance comprised a combination of pre-assurance research, interviews with relevant employees, site visits; documentation and record review and the evaluation of the report for the alignment to the GRI protocols. During the audit, it was visited Gold Fields offices (Head office of Lima and Cajamarca), the Cerro Corona mine and the camping facilities, and a sample of the sustainable development projects implemented (Water System in Cuadratura, agriculture fields improvement, artificial insemination, and the project for climate change adaptation “Programa Adaptando Juntos”).
Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process.
STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing; sustainability report assurance and greenhouse gases verification. SGS del Perú affirms our independence from Gold Fields, being free from bias and conflicts of interest with the organization, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised a Lead Auditor for Sustainability Report Assurance, certified by IRCA (International Register of Certificated Auditors) as Lead Auditor in Environmental, Quality, Occupational Health & Safety, and Social management systems. She is also and Lead Verifier in Greenhouse Gases. The Peer Reviewer is Auditor of Sustainability Reporting Assurance.
ASSURANCE OPINION
On the basis of the methodology described and the verification work performed, we did not observe any circumstance that may us believe that the information and data contained within “Integrated Annual Report Gold Fields La Cima S.A. 2015” verified is not accurate, not reliable and does provides a fair and balanced representation of Gold Fields’ sustainability activities in 2015. The assurance team is of the opinion that the Report can be used by the Gold Fields’ Stakeholders. We believe that Gold Fields has chosen an appropriate level of assurance for this stage in their reporting.
CONCLUSIONS, FINDINGS AND RECOMMENDATIONS WITH REGARDS TO GRI G4 (2013)
In our opinion the “Integrated Annual Report Gold Fields La Cima S.A. 2015” is presented in accordance with the Core option for GRI G4 (2013). We are satisfied that the General Standard Disclosures and Specific Standard Disclosures on Identified Material Aspects and Boundaries and Stakeholder Engagement (G4-17 to G4-27) have been addressed in line with the Core requirements of GRI G4 (2013).
Gold Fields La Cima S.A. is more mature in the second year of audit, having improved its process of mapping stakeholders and identifying material aspects. Beyond that, they have applied their strategy of "Creating Shared Value", demonstrated through number of projects in the area of direct influence, the villages and nearby communities, as well as the society in general with the payment of taxes. It also became clear that Gold Fields La
GP5008 Issue 4
ASSURANCE STATEMENT
Cima S.A., prepare separate communications for each community, such as leaflets and magazines, about the social work done in each community. Thus, it is aligned with the principle of clarity of the GRI.
SGS del Peru especially congratulates Gold Fields La Cima S.A. for considering the sustainability megatrends, which are climate change and water resources. The audit included the visit to some flagship projects being implemented by the mine together with NGOs with support from international organizations, communities and villages of the area of influence, as follows:
• Project Implementation of climate change adaptation for agriculture and resource management.
• Water supply water quality improvement for communities by implementing a number of innovative projects (water supply facilities for each family, increased water flow on current water streams, optimization with sprinkler irrigation and water treatment for use in the community).
On the other hand, opportunities for improvement were identified during the assurance for consideration in future reports, including:
• Determine the support to be provided in the period of transition to retirement, to who are close to retirement for increasing trust and quality of relationships.
• Consider calculating its Greenhouse Gases Inventory in detail, including all significant emission sources to understand their carbon exposure and risks associated.
• Regarding energy, for next reports, it would be advisable to include the proportion of renewable energy. Also, to implement the fuel control system and according to the results identify opportunities for savings.
• For alignment with labor indicators in future reports, break-up the information by gender and employment type, as required by the indicators reported.
Signed: For and on behalf of SGS del Perú S.A.C. Ursula Antúnez de Mayolo Corzo Lead Auditor of Sustainability Report Assurance SGS del Perú S.A.C. 10th May, 2016 www.sgs.com
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
DearShareholders:
IncompliancewithlegalregulationsoftheStateandtheCorporation,wesubmitour2015IntegratedReport,whichincludeseconomic,environmentalandsocialinformation.Aseveryyear,thisreporthasbeenpreparedbasedontheGlobalReportingInitiativemethodology,undertheEssentialoption.
Thefinancialstatementscontainedhereinhavebeendulyexaminedandauditedbyourexternalauditors,KPMG.Inaddition,weincludeinformationaboutshareholding,corporateandmanagementstructuresofGoldFieldsLaCimaS.A.,whichownstheminingrightsandotherassetsrelatedtotheCerroCoronaminingunit,locatedinthedistrictandprovinceofHualgayoc,Cajamarcaregion,Peru.
For second consecutive year, this report has been audited by SGS del Peru S.A.C. validating external assurance of its content nature and scope, in compliance with the applied international GRI methodology.
Theminingsector,asawhole,seekstocontributetothesustainabledevelopmentofthecountry,andGold
FieldsLaCimawantstobeaclearexampleofthis.Thesustainabledevelopment,towhichwecontributeinourareaofdirectinfluence,ispartofaSharedValueStrategy.
GoldFieldshasidentifiedavisionthatenablesustoactinordertotranscend,sothatwecanberememberedbyourstakeholdersand,especially,bythecommunitiesaroundus,asacompanyactingwithseriousness,beyondtheoperationalandfinancialresults.
Thisvisiongoeshandinhandwithsomeofouractionpillars,whichwequalifyasnon-negotiable:ouremployees,safety,regulatorycompliance,environmentalprotectionandrespectforourstakeholders.
ItisimportanttohighlightthateventhoughtheSharedValueStrategyhasbeenassumedsince2013,thesocialinvestmentstrategy,carriedoutsinceCerroCorona’sexplorationstage,implementedprogramstogenerateahighervalueforthecommunities.
For this reason, the social programs accomplished contribute directly to the fields of infrastructure, education, health, productive development,
LetterfromtheChairmanofthe
Board[G4-1]
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“Gold Fields has identified a vision that enables us to act in order to transcend, so that we can be remembered by our stakeholders and, especially, by the communities around us, as a company acting with seriousness, beyond the
operational and financial results.”
ofthreeyears.Moreover,aseveryyear,wehavecontinuedworkingtoimplementnewinitiativestoprevent,mitigateandcontrolimpactsthatcouldbecausedbyCerroCorona’soperations.
Withregardtooureconomicperformance,while2015wasayearinwhichcopperandgoldpriceswerereducedin30%and6%average,respectively,oursalesreachedS/.934million,representingan11%decreasecomparedto2014.Thisismainlyduetothementionedpricesdrop.Inaddition,operationalearningswereS/.97millionwhichmeans69%lessthanthepreviousyear.Finally,theyearclosedwithanetlossofS/.293millionduetotaxincomeandtotheadjustmentsmadetodeferredtaxesduringtheyear.
Thistime,Iwouldliketopointoutthattheseresultswouldnothavebeenpossibleifwehadnotachievedacultureoftrustamongcompanymanagement,hopingitwilltranscendtothestaffsothatteamwork,confidenceandcommitmentremainbeingthevaluesgoverningourorganization.Thiseffortisevidentbyhavingobtainedaworkenvironmentratingof81%,accordingtotheGreat
PlaceToWork(GPTW)methodology,abovetheproposedtarget,andwithourfutureeffortsfocusedinmaintainingwhathasbeenachieved.
Finally,weareawarethattherearegreatchallengesintheminingsectorespeciallyinchangingtheperceptionandimageoftheminingindustryasagentoflocal,regionalandnationaldevelopment;and,further,beinglocatedinCajamarca,areawiththelargestnumberofconflicts.Facedwiththissituation,weareworkinghandinhandwiththeNationalSocietyofMining,PetroleumandEnergytomakepossibleachangeinperception,supportingcommunicationplansforthisparticularpurpose.
Sincerely,
Nicholas John Holland Chairman of the Board
water and sanitation, electricity, among others. One achievement to be pointed out during 2015 has been our child malnutrition program in the area of direct influence, which is giving its first results, with a 58% to 35% anemia reduction in children under five years old.
Ontheotherhand,havingcompletedelectrificationinfrastructureinourareaofinfluence,inHualgayocdistrict,wehaveinitiatedaplanfordrinkingwaterworksinthatregion.Webuilt85smallfamilysystemsofdrinkingwaterinCuadraturavillage.Inaddition,technicalfileshavebeendevelopedtoexpandthisserviceinCoymolacheAltovillageandinElTingocommunity.
Regardingtoinfrastructure,Bambamarca’smarketaswellasHualgayoc’sHealthCenteralreadyprovidebetterhealthconditionsforfoodtradeandprimaryhealthservices,benefitingthecommunities.
Intermsofenvironmental,safety,andoccupationhealthaspects,thehighestinternationalstandardshaveremained.ThecompanyhasbeenrecertifiedwithISO14001:2004andOHSAS18001:2007standards,bytheSpanishAssociationforStandardizationandCertification(AENOR),foraperiod
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
GeneralScopeofthe
Report
1 The Global Reporting Initiative is an organization created in 1997 by the United Nations Environmental Program (UNEP) and by the Coalition for Environmentally Responsible Economies (CERES). Its main goal is to provide an international reporting methodology for social responsibility and/or sustainability (www.globalreporting.org).
TheinitiativetoprepareanIntegratedReport(IntegratedReportknownasIRforitsacronyminEnglish)providesauniquecompanystructure,deliveringfinancialandnon-financialperformancedatainasingledocument,aswellasshowinghoweconomic,socialandenvironmentalaspectsinterlacewitheachother.
Herein is the fourth edition of our 2015 Annual Report and Sustainability Report of Gold Fields La Cima S.A. based on the Global Reporting Initiative1 methodology.
This year, our report is issued under the name of “2015 Gold Fields La Cima Integrated Report” due to two important reasons:
To communicate that our focus on the economic, social and environmental areas are axes of equal importance to our business model development, and that we are proud to be the first Peruvian mining company which, under the Global Reporting Initiative methodology, informs its stakeholders about these three areas in a single document.
[G4-17, G4-18, G4-19, G4-23, G4-25, G4-28, G4-29, G4-30]
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
• ThepresentedinformationcoverstheperiodbetweenJanuary1andDecember31,2015.• Publicationperiodicityisannual.• Foritsdevelopment,wehavefollowedtheG4GuidelinesandtheprotocolsoftheGlobalReporting
Initiative,andtheSectorialSupplementforMining&MetalsundertheEssentialoption.• Reviewoftheheadquarters’report.• Therehavenotbeensignificantchangesinthescopeandcoverageofeveryaspectwithregardto
previousreports.
Elaboration process of the reportAseveryyear,thereportdevelopsinaprocessofinternalparticipationinwhichtheinformationisobtainedthroughinterviewstomainstakeholders.Theprocessincludesgatheringinformationaboutperformedactivities,operativeresults(performanceindexes)andsustainabilityinitiatives,accordingtotheGoldFieldsLaCimasharedvaluemodel.
Theinformationtobereportedalsoincludestheanalysisonhowstakeholders’managementcouldaffecttheoperationsofCerroCorona.
Additionally,wehavereviewedtheassuranceauditresultscarriedoutbySGSin2014,inordertoimplementimprovementsincompliancewiththescopetheGlobalReportingInitiativemethodology,especiallyinregardstoGRIPrinciples:Stakeholders’ParticipationandMateriality.
Likewise,avalidationprocesshasbeencarriedoutbyalltheinvolvedareaswiththepurposeofensuringthatthecontentprioritizesrelevantissuesrelatedtoeachstakeholder.Todefinerelevanttopicsforeverystakeholder,wehavedoneamaterialitysurveyfortheinterviewedindividual.Thisactionwastakeninordertoidentifymajorproblemsandstakeholders’expectations.
This document has been prepared under the following
Guidelines
The overall objective of this document is to report on the results achieved during 2015 calendar year in Cerro Corona mining operation, in order to inform:√ Vision to make the company transcend as part of the Gold Fields La Cima sustainability
strategy.√ Lines of work in response to the needs and expectations of our main stakeholders:
Government, shareholders and investors, employees, suppliers and contractors, and communities. (G4-25)
√ Gold Fields La Cima contribution to local, regional and national scopes.√ 2015 environmental, social and economic results.√ Next steps, which are next year’s challenges for each line of work.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Material aspects by stakeholder [G4-19, G4-20, G4-21, G4-22, G4-26, G4-27]Afteranalyzingthematerialitysurveyresults,mostrelevantissueshavebeenidentified,aswellasprioritizationoftopicforeachstakeholder.
Category–GRIMaterialAspect IdentifiedProblem Coverage GoldFieldsActions
Society-Regulatorycompliance
• Increasingsocialpressuresandconflicts
• Increaseininspectionproceduresandsanctions
Internalandexternal
• Internalandexternalaudits• InformationofficeinHualgayoc2
• Unexpectedoperativecontrols• Participativemonitoringprogramsof
waterquality
Society-Claimmechanismsduetosocialimpact
• Communityclaims• Higherworkexpectationsof
thecommunities
Internalandexternal
• Strengtheningoflocalsuppliers‘Successfulentrepreneurs’program
• InformationofficeinHualgayoc• Localcompanieshiring
Category–GRIMaterialAspect IdentifiedProblem Coverage GoldFieldsActions
Economic-Economicperformance
• Volatilityinthepriceofgoldandcopper,inflationrate
• Economicperformance
Internalandexternal
• Operativeefficiency• Costreductionprograms
Society-Regulatorycompliance
• Increasingsocialpressuresandconflicts
• Regulatorycompliance• Socialandenvironmental
performance
Internalandexternal
• Internalandexternalaudits• Localeconomicdevelopment
programs• Socialinfrastructure• Integratedmanagementsystem
2 Located at Jirón San Martín 144, Hualgayoc. Telephone: 076-353541. E-mail: [email protected].
Stakeholder:
Government
Stakeholder:
Shareholders and investors
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Categoría-AspectomaterialGRI ProblemáticaIdentificada Cobertura AccionesdeGoldFields
Laborpracticesanddecentwork
Trainingandeducation• Needtodevelopworkskills Internal
• GoldFieldsSchool• DeltaProgram• BuildingProgram• ScholarshipsProgram• LeadershipProgram• GoldFieldsFeedbackProgram
Laborpracticesanddecentwork
Employment
• Needforattractionandtalentretentionprograms
• Trainingandeducation• Wagesandsalaries
Internalandexternal
• Socialbenefitprogram• CompensationsProgram
Economic-Economicperformance • Operativecostsreduction Internal • Operativeefficiency
Category–GRIMaterialAspect IdentifiedProblem Coverage GoldFieldsActions
Laborpracticesanddecentwork
Trainingandeducation
• Needtopromotetheemployabilityoftheworkforce
External• Strengtheningoflocalsuppliers
‘Successfulentrepreneurs’program• Recruitmentoflocalsuppliers
Economic-Indirecteconomicconsequences
• Evaluationofsupplierslaborpractices External
• Monitoringthefulfillmentofsupplierslaborobligationsof
• Programofcontinuousimprovement
Laborpracticesanddecentwork-Healthandsafetyat
work
• Promptnessrequirementforproceduresimplementation External • Safetyandoccupationalhealth
proceduresforcontractors
Environment-Environmentalassessmentofsuppliers
• Demandforgreaterpreparationfortheimplementationofprocedures
External• Monitoringofcontractors
andsuppliersenvironmentalmanagement
Economic-Procurementpractices
• Needtomaintainqualitystandardsofrequiredgoodsandservices
Internalandexternal • Systemofsupplierscertification
Stakeholder:
Suppliers
Stakeholder:
Employees
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
MaterialAspect IdentifiedProblem Coverage GoldFieldsAction
Society-Socialimpactevaluation
• Widespreadperceptionoftheminingharmfuleffectsofinrelationtowateravailabilityandquality.
External
• Internalandexternalaudits• Publiccareoffice• Unexpectedoperativecontrols• Waterqualitymonitoring
Laborpracticesanddecentwork-employment
• Increasedpressureforlocalemployment External
• Strengtheningoflocalsuppliers‘Successfulentrepreneurs’program
• Hiringoflocalsuppliers
Environment-Regulatorycompliance
• Increasedsocialpressureonenvironmentalcompliance
Internalandexternal
• Internalandexternalaudits• Unexpectedoperativecontrols• Waterqualitymonitoringprograms
Society-Claimmechanismsdueto
socialimpact
• Increasingsocialpressuresandconflicts External
• Hiringoflocalsuppliers• Localeconomicandproductive
developmentprograms• Socialinfrastructure
Environment-Water• Needtosearchformore
efficienttechnologiestooptimizewaterconsumption
Internal • Operationalefficiency
Thefollowingaspectshavebeenidentifiedasnon-material,becausetheyaremonitoredthroughinternalcontrolsandapprovalsystems,andtherehavebeennooccurredevents:
• Involuntaryresettlementofcommunities
• Childlabor
• Forcedlabor
Limitations of identified material aspects, both inside and outside the company, have not been registered during 2015. Likewise, it has not
been necessary to make amendments to the information presented in previous reports.
Stakeholder:
Community
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Procedure for stakeholders’ identification and monitoring (G4-26)GoldFieldsLaCimahasaspecificproceduretoidentifyandmonitorstakeholders,whichdescribestheprocessasananalysistool,andhasasitsmaingoalkeepingandimprovingthecompany’ssociallicensetooperate.
Thisprocedurehasallowedprioritizingtheworkwitheverystakeholder,definingstrategies,schedulingvisits,settingrelationshipandcommunicationplans,particularlywiththecommunitiesintheareaofdirectinfluence.
Headquarters’ standard on community relations and stakeholders engagement
Gold Fields La Cima has specific guidelines set by its headquarters in relation to management and engagement of stakeholders, to ensure proper and consistent alignment with the Group’s objectives in all regions where it operates.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Foreveryaspect,specificactivitiestobe
developedaredefined;thoseinclude:stakeholders’identificationandmapping,strategydevelopmentandimplementation,acompliance
planofcommitmentsfulfillmentanditsdiffusion,conflictmanagement,capacitiesandresourcesplan,reportelaborationofcommunitiesintheareasofinfluence,economicandsocialenvironmentalimpactassessments,studiesof
perception,amongothers.
Consequently,minimumrequirements,strategicobjectivesandprinciplesareestablishedtoguiderelationswithcommunities,particularly.Itisacceptedthatregulatoryrequirementsarespecifictoeachcountry,sotheseguidelinesdonotreplacelocalregulatorycompliance.Therefore,thekeyaspectstobemetaccordingtoourstakeholders,sustainabledevelopmentpolicy,communitiesandindigenouspeoplepolicystatement,anddeclarationofcommitmentsrelatedtothecommunitiesare:
1Buildrelationshipswithkeystakeholders,basedontrustandonanopen,honest,andfrequent
participation.
2Leaveapositivelastinglegacyforcommunitiesandworkwithseveralstakeholders(investors,
partners,communitiesandGovernments)topromotesustainabledevelopmentandtocreate“Sharedvalue”.
3Monitorandassesscommitmentsperformance;and
4Strivetoachieveabetterunderstandingoftheconcernsandaspirationsofourcommunities,
andcreatetogetherandconferadequatecommitmentstoensureandmaintainoursociallicensetooperate.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“La Cima is a company incorporated and existing under the laws of the Republic of Peru, whose corporate purpose is to engage in mining activities as far as the
General Mining Law allows, which also includes activities of mineral transportation and sale. The length of the company is undetermined.”
GoldFieldsLaCimaS.A.
1
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
1.1Who we
areGoldFieldsLaCimaS.A.,hereinafter“TheCompany”,belongsto
GoldFieldsLtd.SouthAfricaneconomicgroup,acorporationwithacenturyofexperienceinthe
miningsectorandrecognizedasoneofthelargestgoldproducersintheworld.IthaseightminingoperationsinfourcountriesinSouthAfrica(SouthDeep),Ghana(Tarkwa,Damang),Australia(AgnewLawlers,StIves,Darlot,GrannySmith)andinPeru,itsCerroCoronaoperation.
GoldFieldsLtd.carriesout“nearmine”explorationactivitiesinAustraliaandGhana.Moreover,ithas“greenfield”explorationprojectsinPhilippinesandChile.Company’ssharesarelistedonJohannesburg(JSE)andNewYork(NYSE)stockexchanges.
CerroCoronaoperationbeganinthemiddleof2008.Itisoneofthefivemostrecognizedgoldandcopperminingoperationsinthecountry.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Incorporation of Gold Fields La CimaLaCimaisacompanyincorporatedandexistingunderthelawsoftheRepublicofPeru,whosecorporatepurposeistoengageinminingactivitiesasfarastheGeneralMiningLawallows,whichalsoincludesactivitiesofmineraltransportationandsale.Thelengthofthecompanyisundetermined.
ItwasincorporatedbymeansofpublicdeeddatedNovember19,2003,effectedaforeMr.AlfredoPainoScarpati,publicnotaryofLima.ItisregisteredbyelectronicentryNo.11606015intheRecordofCorporationsofLima’sRegistryOffice.Subsequently,bypublicdeeddatedJuly5,2006,aforeMs.RosalíaMejíaRosasco,publicnotaryofLima,itscorporatenamewaschangedfromSociedadMineraLaCimaS.A.to“GoldFieldsLaCimaS.A”.Asaresultofchangingitsstatustoanopencorporation,bypublicdeeddatedAugust20,2010,effectedaforeLima’sPublicNotaryMonicaMargotBambiniAvila,LaCimapartiallychangeditsstatuteanditscorporatenameto“GoldFieldsLaCimaSociedadAnónimaAbierta”or“GoldFieldsLaCimaS.A.A.”.BothnamechangesaredulyrecordedinthePublicRegistry.
BymeansofpublicdeeddatedNovember5,2012,effectedaforeLima’sPublicNotaryEduardoLaosdeLama,LaCimaadoptedthestatusofRegularCorporation,thusitmodifiedpartiallyitsstatute,andasaresultitsnametoGoldFieldsLaCimaS.A.,whichwasrecordedinthePublicRegistryofLimaonDecember17,2012.
GoldFieldsLaCimaadministrativeofficesarelocatedatAv.ElDerbyNo.055,Torre1,Oficina301,ResidencialLimaPoloandHuntClub,districtofSantiagodeSurco,Lima,Peru.Thetelephonenumberis(51-1)706-0400anditsfaxnumberis(51-1)706-0420.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
SafetyIfwecannotoperatesafely,wedonotoperate.
ResponsibilityWeactinaresponsiblewayandcareabouttheenvironmentandallourstakeholders,includingouremployees,communitiesandshareholders.
HonestyWeactwithimpartiality,integrity,honestyandtransparency.
RespectWetreateachotherwithtrust,respectanddignity.
Innovation Weencourageinnovation,entrepreneurialspiritandactingasifweweretheowners.
Compliance Weworktogetherasateamanddowhatwesaywearegoingtodo.
VisionBeaworldleaderin
sustainablegoldmining.
MissionWearecommittedtooperationsoptimization,socio-environmental
bestpracticesandasustainableandprofitablegrowth,whiledevelopingthebestaccessiblehumantalentandpromotingrelationshipsoftrustandmutualbenefitwithnearbycommunitiestoachieve
higherreturnsforinvestors.
1.2Vision, Mission
y Corporate Values
[G4-56]
Corporate Values
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
WhatbindsustogetherinGoldFieldsLaCimaisourbrandandwhatisbehindit,i.e.ourDNA.GoldFieldsDNAinvolvesseveralcomponentswhich,together,showwhoweare,whatwedoandhowwework.
Thesecomponentsare:
• Ourvision
• Ourvalues
• Ourstrategicgoals
• Ourcommitmentswithourstakeholders
• Ourcorporatecultureandpersonality
• Ouroperativemodelandstructure
• Ourstrategy
• Ourcorporateidentity
GoldFieldsDNA:“Thisiswhoweare,whatwedo,andhow
wework”
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
1.3 OperationsCerro Corona mining unitTheCerroCoronaminingunitislocated80kilometersfromthecityofCajamarca,sevenkilometersfromthetownofHualgayoc,byroad,and30kilometersfromBambamarca,ontheeasternslopesoftheWesternAndeanMountainsinNorthernPeru,between3,600and4,050m.a.s.l.
ItislocatedbetweenthebasinsofTingo-MaygasbambaandHualgayoc-Arascorguerivers,affluentoftheLlaucanoRiver.
ThecompanyhirestheservicesofastoragewarehouseforconcentrateintheportofSalaverry,locatedintheprovinceofTrujillo,departmentandregionofLaLibertad.
ItsAreaofdirectinfluence(ADI)isconstitutedbytheruralcommunityofElTingoandthevillagesofPilancones,Coymolache,Cuadratura,aswellastheurbandistrictofHualgayoc3.
Moreover,itsAreaofIndirectInfluence(AII)isconstitutedbytheresidentsofBambamarcaandbasincommunitiesofTingo-MaygasbambaandHualgayoc-ArascorgueRivers,includingusersofManuelVasquezDiazwatersystem.ItalsoincludesthevillageslocatedneartheoretransportationroutetotheportofSalaverry.
CerroCoronaminingunitproducescopperandgoldthroughconventionalminingmethodsofopenpitandsulfidemineraltreatmentviaflotationtoextractconcentrate,whichislatertransportedbytruckforapproximately380kilometersuptotheportofSalaverrytobesent,bysea,tosmeltersinAsiaandEurope.
Cerro Corona production processesThegeneralguidelinesofourproductionprocessesaretoextracthighqualityconcentratesatlowcostwhilepreservingtheenvironment,withspecialattentiontothesafetyandoccupationalhealthofouremployeesandcontractors.
3 La Cima defines its Area of Direct Influence as that which, due to the effect of company’s activities, could be impacted while accessing to the natural resources or to its social, economic and cultural structure.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Theextractionprocessbeginswithdrilling,blasting,loadingandmaterialhauling,andendswiththeoperationofmaterialtrammingorhandlingtofeedtheProcessingPlantwithaproperblending.Mostoftheminingactivitiesareconductedbyacontractorspecializedinmining,underthesupervisionandmanagementofGoldFieldsLaCima.
• DrillingThefirststageoftheminingcycleistodrillholesinminedprogressareaslocatedonthepitbanks.Inthesame,thepayloadwillbelocatedlater.Drillinghasparametersthatdependonthetypeofmaterial(oreorrubble)andthehardness.AtCerroCoronaoperation,wehavetwoDM4577/8’’diameterdrillsanda51/8”diameterROC.
• BlastingItistheprocessinwhichexplosivechargesareusedtobreaktherockintosuitablefragments.Thetypeofexplosiveisdeterminedbythematerialtype,therockhardness,andthepresenceofwater.HeavyAnfoisusedintheoperation,andduringprecutthecartridgeemulsionisused.
• LoadingSubsequenttoblasting,thematerialisloadedwithCAT374excavatorsof4.6m3capacity.
• HaulingHaulingofmaterialisdoneinVolvo-FMX440andMercedesActros444dumptruckswith32tonscapacity.Thedestinationofmaterialsvariesaccordingtotheirnature.Sulphideoreisintendedforgrindingandflotationprocess.Residuesaresenttodepositsandwhenmaterialsaresuitableforconstruction,theyaredestinedtotheconstructionofthetailingsdamorforroadmaintenance.Asmalleramountisprojectedtocontinueaccumulatingoreoxidesintheoredeposit(Stockpile).
• Handling in Rom PadFromtheareaoforecollection(fingersinRomPad)loadingisdonewithCAT980Hloaderswith4.5m3ofspooncapacitytofeedLocotrakmobilecrusherand/orrollercrusheroftheplant.
1.Mining
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
2.Processing “During2015,measureshave
beenestablishedtoimprovethegrindingandregrindingcircuit,andaSP200crusherhasbeenreplacedforpebblesprocessingwhichhasenabledmovingfrom
30to80MTperhour.”
1. Ore crushingThevarioustypesoforeobtainedintheminingprocessarecollectedinthestockofmineralstothenentertothecrushingplant.Thepurposeistoreducetheoresizeandensuretheorefeedtobecrushedandgetasmallersize(<6inches).Theretrievedmaterialistransportedthroughstripstothegrindingarea.
2. GrindingThecrushingproductistransportedtoatwo-stagegrindingcircuittocontinuethesizereductionprocessandachievetheappropriateF80foritsshipment,inpulp,totheflotationprocess.OreentersSAGmilltodecreaseitssizefrom4to0.1inch.Then,themilldischargeispumpedtoasizeclassificationsysteminhydrocyclones,whereoreoflessthan150micronssizeissenttotheflotationprocess,whilelargeroreissenttothemillforitsgrinding.Thepurposeofthisstageistoachievethebestoredischargeandclassification,withfeaturesthatensureanefficientflotationprocess.During2015,measureshavebeenestablishedtoimprovethegrindingandregrindingcircuit,andaSP200crusherhasbeenreplacedforpebblesprocessingwhichhasenabledmovingfrom30to80MTperhour.
Itshouldbenoted,thatintheorecrushingprocess,aswellasinthegrindingprocess,thereisapermanentnoisemonitoring.
29
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
3. Flotation and reagents, gravimetric and regrindingInthesestages,theseparationofvaluableelements(copperandgold)ofthenon-valuable(iron,clay,bargains)iscarriedoutthroughreagentsadditiontoallowtheflotationofthevaluableminerals(coppersulfidesandgoldassociatedwiththem).Thisfreegoldisrecoveredbyagravimetricprocess.Thematerialthatdoesnotfleetisconsideredastailings.Theoverallobjectiveofthisstageistorecoverthemaximummetalcontentandensureamarketableproductquality.In2015,underthecostsavingsprogram,theconsumptionofreagentshasbeenreducedmakingmoreefficientuseofthem.
4. Thickening and tailingsTwoproductsareobtainedfromtheflotationstage:oreconcentrateandtailings.Tailingsaresenttothethickener,whichseparatessolidsfromliquidsandrecoversthewater.Thefinalconcentrateisthickenedandgoestothefilteringstagebeforeitsstorage,whilethetailingsaresenttothetailingsdam.Atthisstage,itisimportanttomaximizewateruseinthethickeningprocessthus,maximizingconcentrateavailabilityandminimizingpollution.
5. FilteringTheconcentrateisfilteredinordertoextractallthewatercontainedintheore.Humiditycontrolwillpreventlosses,eitherbydrippingorvolatilization,whiletransportingthematerialtotheportofSalaverry.Thepercentageofhumidityisaround8%.
6. Storage and delivery of concentrateItisthefinalstageoftheproductionprocess.ConcentrateisstoredforitssubsequentdispatchtotheSalaverryport.During2015,anaverageof433,72WMT(wetmetricton)concentrateperday,astransportedfromCerroCoronain30-tontrucks.In2015,anincreaseof813to830MTpereffectivehourofmineralproductionwasachieved,rising0.7%copperrecoveryand3.9%goldrecoveryinrelationto2014.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Inordertoimplementaculturethatpromotesefficiencyandinnovation,in2015,withthesupportofaninternationalconsultancy,weimplementedamethodologytointegrateoperationareasexecutingoptimizationandefficiencyprojects,underavisionofaddingvaluethroughouttheproductivechainofthecompany.
Thismethodologyhasalloweddevelopingseveralprojectswiththeappointmentofaleadingareaforeachoneand,atthesametime,thejointworkofdifferentareastowardsthesamegoalwitheconomicoutcomesandexpectedbenefits.
Eachworkteamproposes,developsandrunsaprojectonanyprocessofthecompanyunderthebasisofbeingasustainableimprovement,andwhichcanbemeasuredthroughacostindex.Toidentifytheprojects,workshopsonimprovementopportunitieswerecarriedout,identifyingthediverseideasthatcouldbeimplemented.
Thechosenprojectswerethosethatmeantanintegrationofvariousareas,withanestimateofhighlevelsavings.Inthisway,itisachievedthatanideaisasharedinitiative.Then,goalsaredefined,feasibilityandriskanalysisisdone,animplementationplanisdefined,and,withtheapprovalofthecorrespondingmanagement,theprojectimplementationbegins.
During2015,sixprojectsfollowingthismethodologyhavebeenimplemented.Aclearexampleofthesewastheso-called“sandwich”,withthepurposeofchangingoredischargesettings,i.e.uniformthematerialfeedingandminimizetheparametersvariabilityaffectingtherecoveryprocessintheplant.Inthissituation,verticallydischarge(slopetype)wasmodifiedtohorizontallayers,thereforethe“sandwich”name.Theslopetypemeantvariabilityinthematerialcompositionbyalteringtheplantprocess,whilethenewdischargetypemaintainedthematerialhomogeneity,achievingsignificantresultsinorerecovery.TheareasthatparticipatedintheprojectwereMineOperations,Planning,GeologyandGeo-metallurgy.
Thiscultureofoperationalefficiencyisexpectedtocontinuegeneratingprojectswithtangibleresults,mainlyatacostreductionlevel,underamethodologyalreadyadaptedtotheneedsofthecompany.
Production results [G4-9]
Gold Fields Ltd. has an annual production of approximately 2.2 million Au ounces, manages ore reserves of 52.1 million ounces of gold and mineral resources, including growth projects of 128.2 million gold ounces. CerroCoronahasprojectedtoprocess60.5milliontonsofmaterialwithmineralcontentbetween2015and2023,withtheaimofproducing1.2milliongoldouncesand231K-toncopperinitsconcentratorplantdesignedtoprocess19thousandtonsperday,atarateof820tonsperhour,with94.74%availability.
Processedoreinthousandsoftonsfor2014and2015,dividedintocurrentandbudgetedfigures,isasfollows:
Gold (in ounces)
2014150,750Current143,457Budgeted
2015158,909Current150,205Budgeted
Operative efficiency
Au-equivalent ounce
2014326,522Current300,985Budgeted
2015295,623Current286,094Budgeted
Annualproduction Tons
processed2014
6,797Current6,786Budgeted
20156,710Current6,848Budgeted
Copper (in tons)
201432,341Current30,981Budgeted
201528,702Current28,449Budgeted
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Ore reserves (unaudited)By December 31, 2014 and 2015
Sulfidesprovenreserves 2014 2015
Gold(000oz.) 1,825 1,527
Copper(Mlb.) 631 527
Copper(convertedintogoldequivalentsin000oz.) 1,457 1,216
Totalgoldequivalentsin000oz. 3,282 2,743
Probablereservesofsulfides: 2014 2015
Gold(000oz.) 200 230
Copper(Mlb.) 80 96
Copper(convertedintogoldequivalentsin000oz.) 185 221
Totalgoldequivalentsin000oz. 385 451
Totalprovenandprobablereservesofsulfides 2014 2015
Goldequivalentsin000oz. 3,667 3,194
000 oz. = Thousand ouncesM lb. = Million pounds
Next stepsFor2016weareworkingontheproductionincreasefrom830to930MTperhour,inadditiontotheimplementationofsomeimprovementstoincreasegoldandcopperrecovery.Likewise,wewillbepursuingtostrengthenthetechnologyavailabletoreduceenergyconsumption.Examplesofthisarethepausesduringpeakhours(from6to9p.m.).
Reserves and resourcesCerroCoronaresourcesandmineralreserveshavebeenestimatedtoanappropriateEconomicCut-OffGradeofNetSmelterReturn,withcosts,tonnagesandgradesbasedonthemodelofresourceblocks.Likewise,estimatesofanymaterialundertheCut-OffGradeofNetSmelterReturnthatneedtobeexploitedinordertoextractalloftheavailablepartoftheresourceareincluded.
Statementsaboutmineralreservesincludeonlymeasuredandspecifiedmineralresources,modifiedtoproducemineralreservesandcontentsinminelifeplan.Inaddition,mineralreservesandresourcesareappraisedbythetechnicalgroupauditsthroughouttheyear.
Allmineralreservesarequotedinproductiongradesandtonnagesdirectlyfromthemine,asdeliveredtothemetallurgicalprocessingplant.Likewise,weperformcontinuouslyspecializedtechnicalstudiestoidentifyresourcesandreservesthatensureCerroCoronaoperationsinthelongterm,andconsequentlymonitorgrowthprojectionsandestimatedproductionlevels.
32
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
33
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“Concerned about conflicts in the country that may affect the company management, during 2015, the business strategy emphasised the communication
to clients about the relationship with communities, good environmental practices and safety and occupational health standards of Gold Fields La Cima.”
GoldFieldsLaCimaS.A.
Growth
2
34
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
GRI-EconomicIndicators 2013 2014 2015
Generatedanddistributeeconomicvalue(G4-EC1)
Directeconomicvaluegenerated-Totalincome 1,258,998 1,178,240 1,032,327
Distributedeconomicvalue: 1,180,379 1,092,027 1,098,550
Paymenttoemployeesincludingsocialbenefits1 98,083 90,235 92,537
Paymenttosuppliers 592,764 652,512 648,397
Dividendpaymenttoshareholders 303,407 225,614 259,201
PaymentstotheGovernment(Taxes)2 186,125 123,666 98,415
Retainedeconomicvalue: 78,619 86,213 (66,223)
Investmentdevelopmentandimpactonpublicbenefitinfrastructure(EC7)
Totalinvestmentforthebenefitofthecommunities 20,626 20,248 27,069
1 Retentions part of employees’ salary have been included.
2 It includes payment on account of income tax, non-domiciled sales tax, dividends income tax, mining royalties (Law 29788), special mining tax (Law 29789), payments to OEFA and OSINERGMIN. It does not include fines.
Gold Fields La Cima in Figures
2.1 Gold Fields La Cima in Figures [G-9]
2.2 Commercial ManagementConcernedabouttheconflictsinthecountrythatmayaffectthecompanymanagement,during2015,thebusinessstrategyincludedaclients’communicationemphasisaboutrelationshipwithcommunities,goodenvironmentalpracticesandsafetyandoccupationalhealthstandardsofGoldFieldsLaCima.
In2015,weworkedtocomplywithdeadlinesandtoofferanoutstandingproductquality.Long-ternsalescontractswerenegotiatedandsuccessfullysigned,achievinganimprovementinpayable,deductionsandpaymentdeadlineconditions.Ontheotherhand,themineralpricesdroprequiredafurtheranalysis,allowingalowerimpactonrevenueandobtainingabalancedperiodofquotations.
Salesweredirectedtolong-termcustomersinEuropeandAsia.Inaddition,saleswereinthespotmarket,positioningCerroCorona’sconcentratequalityinthecopperconcentratemarket4.
Thefollowingtablesshowconcentratesalesin2014,bothtocompanieswithlong-termcontractsandtothespotmarket:
Company Country ConcentratesWMT ConcentratesDMT Sales%
PanPacificCopperCo.Ltd. Japan 37,540.32 34,824.73 24.26%AurubisAg Germany 53,347.46 49,707.70 34.62%TrafiguraPte.Ltd. Singapore 27,594.18 25,439.07 17.72%GlencorePerúS.A. Peru 5,012.18 4,666.60 3.25%
LSNikkoCopperInc SouthKorea 31,168.22 28,933.34 20.15%
Total 154,662.36 143,571.44
4 Gold Fields La Cima has not recorded fines as a result of not compliance related to the delivery and / or quality standards of its products [G4-PR9]
35
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ToDecember31,2015,GoldFieldsLaCima’sregisteredsharecapitalwasS/1,135,227,383.29
(onethousandonehundredthirtyfivemilliontwohundredtwentyseventhousandthreehundredeightythree29/100Soles),fullysubscribedand
paid.
2.3Gold Fields
La Cima Social Capital
Thesharecapitalofthecompanyismadeentirelybycommonshareswithanominal
valueofS/ 0.91
(91/100Soles)each,fullysubscribedandpaid,allwith
equalrightsandprivileges.
BymandatoryAnnualShareholdersMeeting,heldonMarch30,2011,thefollowingdividendpolicywasapproved:
a. Distributionofdividendswillbedoneaccordingtothecapitalstockparticipationofeachstakeholder,andonlytotheextentthereareprofitsavailablefordistribution.
b. Atleast50%oftheprofitsavailablefordistributionineachfiscalyearwillbegivenoutasdividends,aftersubtractingthelegalreserve,subjectinanycasetotheconditionsandfinancialneedsofthecorporation.Thenon-distributedearningsbalancewillremainfreelyavailableonaprofitsaccount.
TheGeneralShareholdersMeetingor,incaseofdelegation,theBoardwillhavethedecisiontofixtheannualprofitsamountand/orproportiontobedistributedasdividends,aswellasthedateordatestoannouncethispayment;theremustbetakenintoaccount,inanycase,liquidity,debt,investmentplans,projectedcashflowandotherrelevantfactorsoftheCorporation.
c. TherighttodistributedividendsonaccountbasedontheresultofthecurrentperiodmaybedelegatedtotheBoard.Itmaydeterminetheamountand/orthequantityofdividendsonaccounttobedistributed,aswellasthedateordatesinwhichthepaymentwillbeannounced,takingintoaccountthefactorsreferredtoinliteralb)above.
d. ThispolicyshallapplyfromthedateofapprovalandwillremainineffectaslongasitisnotreviewedoramendedbytheGeneralShareholdersMeeting.
BymandatoryAnnualShareholdersMeetingdatedMarch31,2015,shareholdersapprovedtodelegatetheBoardwiththeapprovalfacultyofdividenddistributionwithchargetocompany’saccumulatedearnings,includingtheauthoritytodetermineamounts,opportunitiesandothertermsandconditionstoimplementsuchdistribution.
2.4 Dividend Payment Policy
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
2.5 2015 Dividend PaymentTheGeneralShareholdersMeetingandtheCompany’sBoard,pursuanttothedelegationmadetotheBoardbyGeneralShareholdersMeetingheldonSeptember27,2010,andtothedelegationeffectedbyMandatoryAnnualShareholdersMeetingdatedMarch31,2015,aswellastotheCompany’sDividendPolicyinforceatthedate,decidedtodistributedividendsonaccountto2014fiscalyearprofitsinfavorofcommonandinvestmentsharesholders,accordingtothefollowing:
2.6 Shareholding Structure
Shareholder Origin EconomicGroup Total Percentage
GoldFieldsCorona(BVI)Limited BritishVirginIslands GoldFields 1,244,715,908 99.7766%
Shareholding Numberofshareholders PercentageshareLessthan1% 110 0.22%Between1and5% 0 0.00%Between5and10% 0 0.00%Greaterthan10% 1 99.78%TOTAL 111 100.00%
Shareholding Numberofholders PercentageshareLessthan1% 1,806 2.23%Between1and5% 0 0.00%Between5and10% 0 0.00%Greaterthan10% 1 97.77%TOTAL 1,807 100.00%
Common shareholders owning more than 5% of share capital by December 31, 2015:
Shareholders entitled to vote:
Investment shareholders:
Other Shareholder’s ParticipationGoldFieldsLaCimaowns99,9%ofHualgayocHoldingS.A.C.shares.
Corporatebody Dateofagreement Concept Distributedamount Dividendpayment
date
BoardMeeting 02.03.2015 S/.85,899,717.75 19.03.2015
GeneralShareholders
Meeting31.03.2015 Onaccountofaccumulatedprofits
to31.12.2014 S/.70,214,802.93 22.04.2015
BoardMeeting27.08.2015(modifiedby
25-02-16record)
Onaccountofaccumulatedprofitsto31.12.2014 S/.103,086,598.91 17.09.2015
Dividends on account to 2014 fiscal year profits
37
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
► GoldFieldsLaCimawasrecognizedasanenvironmentallyresponsiblecompany,anditwasincludedintheGoodEnvironmentalPracticesRegisterofEvaluationandEnvironmentalControlOffice(OEFA).
► ThecompanyparticipatedforthefirsttimeinSocialResponsibilityAwardbestowedbytheGoodEmployersAssociation,whichseekstorewardgoodworkpractices.Thesepracticesareevaluatedtakingintoconsiderationrespecttoemployees,innovationinthepracticeandreplicationlevelinotherorganizations.ThecompanywasawardedwithanHonorableMentionduetothesocialbenefitsprogram.ItshouldbenotedthatGoldFieldsLaCimawastheonlyminingcompanytobeacknowledged.
► GoldFieldsLaCimawasrecognizedforthefourthconsecutiveyearasasociallyresponsiblecompany(ESR),awardedbyPeru2021AssociationinalliancewiththeMexicanCenterforPhilanthropy(CEMEFI).Toobtainthisaward,goodeconomic,socialandenvironmentalpracticesareevaluated,towardsseveralstakeholders,suchasemployees,suppliers,communitiesandsocietyingeneral.
► InOctober2015,thecertifyingcompanyAENORPeruS.A.carriedouttherecertificationauditofourIntegratedManagementSystemSSYMA,anarduousprocessthatresultedintherecertificationofISO14001:2004andOHSAS18001:2007standardsforthenextthreeyears.
► ParticipationintheSustainabilityReportevaluation(ReportingMatters)organizedbytheWorldBusinessCouncilforSustainableDevelopment(WBCSD)inwhichGFLCobtainedascoreplacingitsreportamongthefirst5reportsofparticipatingPeruviancompanies.
► GoldFieldsLaCimaisthefirstcompanyintheminingsectortouseCO2forindustrialwaterneutralizationinitsoperations.
► SecondplaceinXVIIISafetyMiningContest,OpenPitcategory,organizedbytheInstituteofMiningSafety-ISEM
2.72015 Prizes and
Awards
38
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
► 2003• GoldFieldsLtd.signeda
purchaseoptionagreementwithSociedadMineraCoronaS.A.fortheCerroCoronasite.
► 2004-2005• GoldFieldsLtd.completed
thelandacquisition,engineeringworks,projectdesign,EnvironmentalImpactAssessment(EIA),andmineralresourcesandreservesestimates.
► 2006• ThepurchaseoftheCerro
CoronaProjectwasfinalizedandtheconstructionoftheminebegan.
► 2007• TheconstructionofLasGordas
tailingsdamandtheexploitationofthequarryRiolitabegan.
► 2008• July27:Thestart-upoftheore
processingplanttookplace(anniversary).
2.8Highlights
► 2009• Thefirstyearofoperation
finalizedandtheplantreacheditsmaximumdesigncapacity.
• ISO14001:2004certificationwasobtained.
► 2010• ISO14001:2004re-certification
andOHSAS18001:2007certificationwereobtained.
► 2011• Theenvironmentalmanagement
systemwasintegratedwiththesafetyandoccupationalhealthsystem,accordingtoISO14001:2004andOHSAS18001,respectively.
• Regardinginfrastructureinvestment,in2011thethirdstageofthetailingsdamconstructionwascompletedandthefourthstagebeganaccordingtotheAreaofOperationsrequirements.
► 2012• Weobtainedthere-certification
ofourintegratedmanagementsystem.
• ThesixthstageofthetailingsdamconstructionendedwithanapproximateinvestmentofS/.196.65million,whichguaranteesanoutstandingintegratedwatermanagementinouroperations,throughaclosedcircuitandenvironmentcontrolsystems.
► 2013• In2013,theconstructionofthe
tailingsdamcontinued,whichguaranteesanoutstandingintegratedwatermanagementinouroperations.
• Wecompletedtheexclusionofallcompany’scommonandinvestmentsharesfromtheLimaStockExchangeRegistryandfromtheStockMarketPublicRegistry,aswell.
► 2014• Electromechanicalassembly
ofElTingoandCoymolacheelectrification,aswellastheinstallationofmeasurerswasfinalized,whichmeansthattheelectrificationprocessconcludedfortheentireCerroCorona’sdirectareaofinfluence.
39
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ByGeneralShareholdersMeetingdatedOctober26,2015
wasagreedtoreducethesharecapitaltoS/1,135,227,383.29(onethousandonehundredthirtyandfivemilliontwohundred
twentyseventhousandthreehundredeighty-three29/100Soles),aswellastoreducetheinvestmentstockaccounttoS/.155,669,696.91(onehundredfiftyfivemillionsixhundredsixtyninethousandsix
hundredninety-sixand91/100Soles)byreturningtotheshareholderstheamortizedparvalue,inaccordance
withparagraph1ofarticle216oftheGeneralCorporationsLaw.Returnofcontributionswasdone
accordingtothelegaldeadline,onDecember22,2015.ThiscapitalreductionhasbeenregisteredinthePublicRecordsofLima
onJanuary11,2016.
Underthemechanismofworksby
taxes,thecentralmarketofBambamarcawasbuilt.Itisoneofthemostmoderninthecountryandthelargestinthenorthern
region.Withthiswork,during2015tradersintheareahavebeenable
toselltheirproductswiththeessentialsafetyandhealth
conditions.
InSeptember2015Hulagayoc’sHealthCenter
wasopen.TheworkwasbuiltentirelybyGoldFields,whichchanneledthesupportthrough
Hulagayoc’sTableofDialogueandCoordination.ThisCenterhas
attendedprimaryhealthproblems.OnSeptember5,thefirstbaby
wasbornwithverygoodhealth.
2015Highlights
40
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
41
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“In that sense, we are committed to incorporate good governance practices in our policies, processes and procedures, as key foundations of our business model.
For that purpose, we have implemented formal and widely spread mechanisms to ensure that corporate values are reflected in our employees’ daily work.”
GoodCorporateGovernance
3
42
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
SinceGoldFieldsLtd.listsitssharesontheNewYorkStockExchange(NYSE),anditisregisteredintheUnitedStatesSecuritiesandExchangeCommission(SEC),thecompanyisunderSECrequirements;thesearerelatedtocorporategovernanceandinformationdisclosuretothemarket,inordertobesufficient,fair,accurate,andtimely.Likewise,thecorporationislistedontheJohannesburgStockExchange(JSE),bywhichKingIIstandardsareapplicable.
Inthatsense,wearecommittedtoincorporategoodgovernancepracticesinourpolicies,processesandprocedures,askeyfoundationsofourbusinessmodel.Forthatpurpose,wehaveimplementedformalandwidelyspreadmechanismstoensurethatcorporatevaluesarereflectedinouremployees’dailywork.
Furthermore,wehavespecificpoliciestopromoteatransparentmanagement,suchasfairandequitabletreatmentofthevotingrightandofshareholdersrepresentation,aswellasrejectiontoanti-competitivepracticesandavoidanceofinterestconflictsthroughmechanismsexpresslyestablishedinthestatutes,thetransparencywiththirdpartiespolicy,theantifraudpolicy,andinthecodeofethics.
3.1 Code of EthicsGoldFieldsLaCima’scodeofethicshasbeenapprovedbytheCorporationBoard,anditappliestoallcorporationemployees,directors,executives,contractors,suppliersandcustomers.Itsmainpurposeistostrengthentheorganizationalcultureandcorporatevalues,incorporatinginitsbusinessmodelanethicalandequitablebehaviorbyimplementingnon-sectarian,non-political,socialandenvironmentallyresponsiblepoliciesandpractices.
This code formalizes aspects such as business justice and integrity, respect for human rights and dignity of all employees, as well as adherence to the standards of honesty, corporate governance and laws that may apply.
Italsosetsspecificguidelinesforsituationsofinterestconflict,confidentialinformation,entertainmentactivities,acceptanceofgiftsandcourtesies,utilizationofcompany’sgoodsandservices,sharesnegotiation,workinghoursandvacations,aswellasreportingunethicalbehavior,amongothers.
ThecodeofethicsestablishesaHumanRightsPolicyStatementwhichdefinesrespectforhumanrightsanddignityofemployeesasthebasisofourorganizationculture5.
Everyyear,allouremployeessignaConflictofInterestsAffidavit,inwhichtheymustdeclareanyconflicttheymayhavewiththecompany.
Thecodeofethicsiscontinuouslycirculatedthroughannualtrainingandinternalcommunication.Likewise,wehaveafreeEthicsHotlinetobeusedbyanyperson,whetherornothe/sheisanemployeeofthecompany,toreportunethicalbehaviors.
AllcomplaintsarerecordedandinvestigatedtoconclusionbyDeloitte,andanonymityofcomplaintsisalwaysguaranteed.
Wehaveembracedalsotheanti-fraudpolicyofourheadquarters,whichtargetstopreventtheriskoffraudulentand/orcorruptionactsinsidethecompany.
5 During 2015 there has been no discrimination incidents related to human rights [G4-HR3].
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
TotalDirectors
5
DirectorLino Abram Caballerino,Peruvian.HeholdsaBachelor’sDegreeofChemicalEngineerfromUniversidadNacionaldeSanMarcos.HehasalsoaMaster’sDegreeinBusinessAdministrationfromESAN.HehasservedasSeniorManager,CEOandDirectorinvariouscompaniessuchasCementosPacasmayoandsubsidiaries,MineraPativilca,MineraTintaya,CorporaciónFinancieradeDesarrollo(COFIDE),MineroPerúComercialandSiderúrgicadelPerú(SIDERPERU).
Mr.AbramhasbeenalsoDirectorofSociedadNacionaldeMineríaandAsociacióndeProductoresdeCemento.
HeistitularmemberofthePeruvianAcademyofEngineeringand,sinceJune2014,heisDirectorofGoldFieldsLaCimaS.A.
Director, Executive Vice-President, CEOErnesto Balarezo Valdez,Peruvian.HeisanIndustrialEngineer,holdingaMaster’sDegreeofScienceinIndustrialManagementandaBachelor’sDegreeofScienceinIndustrialEngineeringfromTexasA&MUniversity,aswellasmanagementstudiesatWhartonSchoolofBusinessandHarvardUniversity.
Mr.Balarezohasaprofessionalexperienceof24yearsincompaniesoftheminingsector,focusinginthefinancialandoperationalareas.Previously,heservedasVicePresidentofOperationsofHolchschildMiningPlc.since2010,beingresponsibleforsixsilverandgoldoperationsinPeru,Argentina,MexicoandChile,aswellasforthegrowthanddevelopmentprojectsofthementionedcompany.
HewasGeneralManagerin2007forHochschildMiningPlc.inMexico,andthenhewaspromotedtoGeneralManagerforPeruin2008.Previously,heworkedinsubsidiariesofHochschildGroupsince1997andwasDeputyGeneralManagerofCementosPacasmayo,amongothercompanies.
3.2 Board [G4-34]Chairman of the BoardNicholas John Holland,English.HeholdsaBComandBAccfromtheUniversityofWitwatersrand,SouthAfrica.HeservesasChiefExecuteOfficerofGoldFieldsLtd.,asofMay2008topresent.
Mr.Hollandhasworkedinfinancialmanagementfor31years.PriortojoiningGoldFields,heservedasFinancialDirectorandSeniorManagerofCorporateFinanceofGencorLimited.HehasalsoworkedasAlternateDirectorofRandRefineryLimited.
DirectorRichard W. Graeme,Peruvian.HeholdsaBachelor’sDegreeinGeologicalEngineeringfromtheUniversityofArizona,UnitedStates.HeretiredinMay2015andcurrentlyservesasAdvisortosomeminingcompanies.HehasbeenDirectorofthecompanysince2006.
Mr.GraemeworkedforPhelpsDogdeCorp.inseveralpositionsduring20years.HewasVicePresidentofAlaskanGoldDivisionforSharonSteelandthenVicePresidentofOperations.Inaddition,hewasVicePresidentofOperationsforGoldenQueenMiningCo.from1996to1999.ForGoldFieldsGroup,heservedasVicePresidentandCountryManagerinGhana(1999–2003),VicePresidentandGeneralManagerinPeru(2003–2007),andVicePresidentandCountryManagerinVenezuela(2007–2008).VicePresidentandGeneralManagerofLuminaCopperS.A.C.(2008-2015).
DirectorGermán Roberto Polack Belaúnde,Peruvian.HeholdsaBachelor’sDegreeinLawfromPontificiaUniversidadCatólicadelPerú(1982).HeisDirectorofthecompanysince2006.
Mr.PolackismemberoftheAdvisoryCommitteeofLima’sLawyersAssociation.HeisalsoDirectorofBrightLifeEnglishS.A.,MineraGoldFieldsPerúS.A.,AcmeAnalyticalLaboratoriesPerúS.A.andHarscoMetalsPerúS.A.
DependentDirectors
2
StructureoftheBoard
IndependentDirectors(*)
3
* Independent Directors are those not linked to the management of the company or to major shareholders. In Gold Fields La Cima, there is no relationship of association, consanguinity or affinity among shareholders, directors and/or managers of the company.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
forMineraYanacochaS.R.L.,whereheheldseveralpositionsinareassuchasprojects,processoptimizationandmine.
Vice-President of Corporate Affairs & Secretary of the Board Miguel Incháustegui Zevallos,Peruvian.HeislawyerfromUniversidaddeLima,Peru,withanMBAfromUniversidadSanIgnaciodeLoyolaandFullertonUniversity.
HeservesaVicePresidentofCorporateAffairsandSecretaryofGoldFieldsBoardofDirectors,beingresponsiblefortheareasofCommunityRelations,SustainableDevelopment,CommunicationandInstitutionalRelations.Previously,Mr.IncháusteguiworkedforminingcompaniessuchasBarrick,Volcan,andLuminaCopper.HehasalsobeenmemberofthePrimeMinister’sAdvisorsCabinetin2002,andProfessorofRealRightsatUniversidadFemeninadelSagradoCorazón(UNIFE).
Vice-President of Operations & General Manager of Cerro CoronaVíctor Manuel Díaz Yosa,Peruvian.HeisametallurgicalengineergraduatedfromUniversidadNacionaldeSanAgustíndeArequipa,Peru.HeholdsaMaster’sDegreefromColoradoSchoolofMines(StrategicProjectEvaluation)andfromBerkeleyUniversity(Costs),UnitedStates.HealsograduatedfromUniversidaddePiura,Peru(TopManagementProgram–PAD,andOperationsManagementProgram–PDO).
Mr.DíazhasservedasGeneralManagerofCerroCoronasince2006;fromJuly2014,hewasVicePresidentofOperationsofGoldFieldsLaCimaS.A.HeheldthepositionofCountryManagerofNewmontMininginMexico,ManagerofProcessesandProductionofMineraYanacochaS.R.L.andinseveralpositionsinMinasBuenaventura.
Vice President of Human ResourcesVerónica Valderrama Garibaldi,Peruvian.SheholdsaBachelor’sDegreeinPsychologyandHumanitiesfromUniversidadFemeninadelSagradoCorazón,withadiplomainHighManagementandHumanResourcesAdministrationfromPontificiaUniversidadCatólicadelPerú.Currently,sheservesasVicePresidentofHumanResourcesofGoldFieldsLaCimaS.A.
ShehasworkedasHumanResourcesManagerforimportantcompanies,includingLANAirlines,duringeightandahalfyears,andTACAAirlines,whereshewasinchargeoftheSouthAmerica’sofficesstaffduring10years.
Vice-President Legal AffairsJuan José Granda Paseta,Peruvian.HeholdsaBachelor’sDegreeinLawfromUniversidaddeLimaandaMaster’sDegreeinCommercialLawfromUniversidaddeSalamanca(Spain),aswellasadiplomainMiningandEnvironmentalLawfromUniversidaddeCienciasAplicadas.Mr.GrandagraduatedfromtheManagementProgramforLawyersatYaleSchoolofManagement,YaleUniversity(UnitedStates).
Vice-President of Finance (Chief Financial Officer)Jorge Redhead Byrne,Peruvian.HeholdsaBachelor’sDegreeinEconomicsfromUniversityofIndiana,UnitedStates,andanMBAspecializedinfinancefromUniversityofNotreDame,UnitedStates.HehasalsograduatedfromtheGeneralManagementProgramofHarvardUniversity.
Mr.RedheadhaspreviouslyworkedatcompaniessuchasProcter&Gamble,TelefónicadelPerú,LANandNextelPerú.HeservesasVicePresidentofFinanceinGoldFieldsLaCimaS.A.sinceFebruary2014.
Vice-President of Corporate DevelopmentAlberto Cárdenas Rodríguez,Peruvian.HeholdsaBachelor’sDegreeinCivilEngineerfromUniversidadCatólicadelPerúandaMaster’sDegreeinStrategicBusinessAdministrationfromEscueladeNegociosofPontificiaUniversidadCatólicadelPerú.HegraduatedfromtheGeneralManagementProgramofHarvardUniversity.
Mr.CárdenaswasOperationManagerofGoldFieldsLaCimaS.A.,since2009.CurrentlyheservesasVicePresidentofCorporateDevelopment.Heworked
3.3 Executive Committee [G4-34]
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
3.4 Management Committees [G4-34]AccordingtoGoldFieldsLtd.guidelines,aparticipatorymanagementispromotedthroughinternationalmanagementcommitteesonstrategicissues,whichallowsexchangingexperiencesandcoordinatinginitiativesineverycountryinwhichitoperates.
Consequently,GoldFieldsLaCimaS.A.approvedthefollowingcommittees:
Committee of Account Evaluation and ApprovalItsgoalistoapprovetheintermediateindividualfinancialstatementsofthecorporation.
Communications CommitteeItsgoalistoensurethatinformationdistributedonbehalfofthecompanyisalignedtotheestablishedvalues,plansandpolicies.Forthispurpose,wehaveidentifiedandtrainedspokespersonswhocandelivermessagestohelpinourrelationshipwithcommunitiesandand/oranyotherstakeholder.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“We believe that Gold Fields La Cima’s participation in cultural events contributes to strengthen relations with the communities and shows respect to their traditions. In addition, our brand presence in printed material and radio
contributes to reinforce Gold Fields’ corporate and institutional image.”
Relationshipwithour
stakeholders
4
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
4.1 Dialogue channels with our stakeholders [G4-24]Eachyear,GoldFieldsLaCimakeepslookingfornewmechanismsinordertostrategicallyandcontinuouslyrelatewitheachoneofitsstakeholders.Consequently,itestablishescommunicationplatformsthatinformandraiseawarenessaboutthecompany’srolesandpowersinthepromotionofregionalandlocaldevelopment,aboveall,inordertoworkwithconsensusfortheinclusiveandsustainabledevelopmentofcommunitiesinitsareasofdirectandindirectinfluence.Thedetailisasfollows:
Communicationchannels Communicationfrequency Mainexpectationsidentified
Periodicinformationbriefingswithelectedauthoritiesaboutcommitmentsenteredbythecompanyandregulationscompliance. Permanent
• Increasingsocialpressuresandconflicts
• Increaseininspectionsandsanctionsprocedures
• Complaintsfromcommunities
• Higherworkexpectationsfromcommunities
FinancialReport Annual
SustainabilityReport Annual
Webpage:www.goldfields.com.pe Permanent
InformationofficeinHualgayoc1,whicheasesadministrationofclaims. Permanent
Directethicshotline2 Permanent
1 Located at Jirón San Martin 144, Hualgayoc, Phone 076-353541, e-mail: HYPERLINK “mailto:[email protected]” [email protected]
2 Hotline to report any unethical conduct, breach or violation of the code of ethics (Peru: 0-800-54-760).
Stakeholder:
Government
Stakeholder:
Shareholders and Investors
Communicationchannels Communicationfrequency Mainexpectationsidentified
FinancialReport Annual • Goldpricevolatility,inflationrate
• Economicperformance
• Increasingsocialpressuresandconflicts
• Regulatorycompliance
• Socialandenvironmentalperformance
SustainabilityReport Annual
Webpage:www.goldfields.com.pe Permanent
Directethicshotline1 Permanent
1 Hotline to report any unethical conduct, breach or violation of the code of ethics (Peru: 0-800-54-760).
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Stakeholder:
Suppliers and contractors
Stakeholder:
Employees
Communicationchannels Communicationfrequency Mainexpectationsidentified
Employeeperformanceevaluation Annual
• Needtodevelopemployabilityskills
• Needfortalentattractionandretentionprograms
• Trainingandeducation
• Wagesandsalaries
• Operativecostreduction
SustainabilityReport Annual
Extendedparticipationcommittees Permanent
Workclimatecommittee Permanent
GoldFieldsfeedbackprogram Permanent
Breakfastsandluncheswithhighmanagement Permanent
Informativebulletins Permanent
Bulletinboardsinallsites Permanent
“GFAnnounces”e-mails Permanent
Meetingofleaders Permanent
Webpage:www.goldfields.com.pe Permanent
Suggestionsmailbox Permanent
Fellowshipmeetings Annual
Team-buildingworkshopsbyareas Permanent
Directethicshotline1 Permanent
Intranet“SoyGoldFields”(IamGF) Permanent
1 Hotline to report any unethical conduct, breach or violation of the code of ethics (Peru: 0-800-54-760).
Communicationchannels Communicationfrequency Mainexpectationsidentified
Portalonwebpage1 Permanent • Needtopromoteworkforceemployability
• Evaluationofsuppliers’laborpractices
• Requirementofgreaterreadinessforproceduresimplementation
• Needtomaintainthestandardsofqualityofrequiredgoodsandservices
Operationalcoordinationandmanagementmeetings Permanent
Technicalandcommercialvisits Annual
Unannouncedoperationalcontrols Annual
Directethicshotline2 Permanent
SustainabilityReport Annual
1 The web portal for suppliers of Gold Fields La Cima is used for sending requests and for presentation of technical and economical quotes of affiliated suppliers.
2 Hotline to report any unethical conduct, breach or violation of the code of ethics (Peru: 0-800-54-760).
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Communicationchannels Communicationfrequency Mainexpectationsidentified
InformationofficeinHualgayoc1thatfacilitatesdocumentationreceipt,complaintsprocedureadministrationandcitizenparticipationintheplanimplementationforCerroCorona’sEnvironmentalImpactAssessment(EIA).
Permanent
• Widespreadperceptionoftheharmfuleffectsofmininginwateravailabilityandquality.
• Increasedpressureforlocalemployment
• Increasedsocialpressureonenvironmentalcompliance
• Increasingsocialpressuresandconflicts
Monitoringunitofcommitmentsmadetocommunities. Permanent
Meetingsforreviewandrenegotiationofcommitments. Biannual
Communalassembliesforlandpurchaseandcoordinationofsocialdevelopmentprograms. Permanent
AwarenessandcommunicationworkshopsinHualgayoc,inrelationtothecompany’senvironmentalandsocialissues. Permanent
SystemofguidedvisitstoCerroCoronatolearnaboutenvironmentalmanagement,productionprocessandsocialprojects. Permanent
Radiomicroprogramsoncultural,environmental,healthandsafetytopics. Permanent
Specificinformationanddiffusioncampaigns. Permanent
Liaisonwithauthorities,opinionleaders,media,non-governmentalorganizationsandinstitutionsintheareaofdirectinfluence. Permanent
ContactattheminewithrepresentativesoftheCommunityRelationsArea. Permanent
Monitoringofenvironmental-socialprogramswithinCerroCorona’sEnvironmentalImpactAssessment(EIA). Permanent
Recordofsocialincidents,inchargeoftheCommunityRelationsArea. Permanent
Directethicshotline2 PermanentActiveparticipationinreligiousandculturalactivities. Permanent
Stakeholder:
Communities
Communicationchannels Communicationfrequency Mainexpectationsidentified
Continuousrelationshipwithauthorities,opinionleaders,media,non-governmentalorganizationsandorganizationsintheareaofindirectinfluence.
Permanent • Widespreadperceptionoftheharmfuleffectsofmininginwateravailabilityandquality.
• Increasedpressureforlocalemployment
• Increasingsocialpressuresandconflicts
SystemofguidedvisitstoCerroCoronatolearnaboutenvironmentalmanagement,productionprocessandsocialprojects. Permanent
Radiomicroprogramsoncultural,environmental,healthandsafetytopics. Permanent
Directethicshotline2 PermanentActiveparticipationinreligiousandculturalactivities Permanent
Area of Direct Influence
Area of Indirect Influence
1 Located at Jirón San Martin 144, Hualgayoc, Phone 076-353541, e-mail: HYPERLINK “mailto:[email protected]” [email protected]
2 Hotline to report any unethical conduct, breach or violation of the code of ethics (Peru: 0-800-54-760).
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Gold Fields La Cima forms part of the following institutions [G4-15]:
► National Society of Mining, Oil and Energy (SNMPE)
► Mining and Sustainable Development Dialogue Group
► Chamber of Commerce and Production of Cajamarca
► Perú 2021 Association
► European Copper Institute (European Copper Institute – ECI) IMO Group
► International Council of Mining and Metals - ICMM, through its headquarters
► United Nations Global Pact - UNFC, through its headquarters.
4.2Institutions in which We Participate
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
WebelievethatGoldFieldsLaCima’sparticipationinculturaleventscontributestostrengthenrelationswiththecommunitiesandshowsrespecttotheirtraditions.Inaddition,ourbrandpresenceinprintedmaterialandradiocontributestoreinforceGoldFields’corporateandinstitutionalimage.In2015,weparticipatedinthefollowingevents:
Hualgayoc’s Virgin of El Carmen Patronal HolidayThisholidayisheldfromSeptember26toAugust7,everyyear,inhonortoVirginofElCarmen.ItisconsideredoneofthemostimportantholidaysintheprovinceofHualgayoc.Thisreligiousfestivityincludesseveralreligious,artistic,sporting,culturalandsocialactivities,amongothers.
Animportantactivityduringthiscelebrationisthe“ninenightsoftributetotheVirgin”(Ninth),inchargeofdistrictsandorganizationsofthecityandsurroundingvillages.
Aseveryyear,officialsfromGoldFieldsLaCima,alongwiththehamletofCoymolache,offeredtheFirstNightoftheNinth,showingempathy,commitment,andrespecttheHulagayoc’straditions.
2015company’scontributionwasS/.160,000,amountusedtoorganizevariousactivitiesincluding:Albazo,Ninthprayer,soccerchampionship,imagearrangementoftheVirgin,Ninthmasscelebration,socialdanceandfireworks.
Agricultural Fair of HualgayocThisfairtakesplacewithinthepatronalholidayofHualgayocwherecitizensofthedistrictaregroupedtoparticipateincattle,sheepand“Paso”horses’exposition,aswellastraditionalandculturalactivitiesintheDistrictofHualgayoc.
GoldFields’contributionwasthroughfinancialsupportandawardsamountingS/.36,465.00.
AgriculturalandCraftFairofElTingoPeasantCommunity
4.3 Cultural Events We Support
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ItisoneofthemostimportanteventsofElTingocommunity,whereseveralcompetitionsseektopromotecultureandtraditionofthearea.Thiseventisorganizedbythemembersofthecommunitywiththesupportofcommunalandprivatecompanies.Aseveryyear,GoldFieldsLaCimasponsoredtheevent.
2015company’scontributionwasS/.33,313,amountusedinthepurchaseofbuckets,“porongo”containersandsteelpots;installationofadecorativewaterproofsunshade;recruitmentofamusicalgroup;installationofboothsforexhibitors,andthedonationofBrownSwissheifersandcalves.
Carnival of CajamarcaCajamarca’sCarnivaliscelebratedbetweenthemonthsofFebruaryandMarchofeachyear,anditisconsideredtobethemostimportantCarnivalheldinPeru.ThecompanysponsoredS/.13,408.50,amountusedtopayservicessuppliersofthe2015MissCarnivalcontest.
Carnival of HualgayocHualgayoc’sCarnivaliscelebratedbetweenthemonthsofFebruaryandMarchofeachyear,anditisoneofthemostimportantfestivalsforHualgayoquinos.GoldFieldsLaCimasponsoredS/.15,000giventotheOrganizingCommittee.
Mother’s Day in HualgayocThisactivitywasheldonMay6atHulagayoc’sColiseumwiththeparticipationofapproximately700people.ThiseventwasorganizedincoordinationwiththeDistrictMunicipalityofHualgayoc.ThecompanydonatedS/.3,152.04inprovisionsforthe300basketsdeliveredtoattendingmothers.Wealsosponsoredthedinner.
OnMay10th,SanFernandoRadioStationofHualgayocorganizedinJoaquínBernalColiseumaceremonytocelebrateHuagayoc’smothers,wherethecompanydonatedS/1,977.69infoodtoentertainmorethan400mothersofthedistrict.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“In Gold Fields La Cima we are proud to have implemented in our operations processes a risk prevention model. To this end, we have a committed
multidisciplinary team who meets standards and procedures, implements required actions to achieve planned results and identifies opportunities for continuous
improvement of these processes. Below we detail the risks identified in the economic, social and environmental areas, according to their critical level by severity and
probability of occurrence, and the actions taken for their mitigation, in 2015.”
Impacts,Risksand
Opportunities
5
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
5.1 General Approach to Economic, Social and Environmental Impacts, Challenges and Opportunities [G4-2,14]InGoldFieldsLaCimaweareproudtohaveimplementedinouroperationsprocessesariskpreventionmodel.Tothisend,wehaveacommittedmultidisciplinaryteamwhomeetsstandardsandprocedures,implementsrequiredactionstoachieveplannedresultsandidentifiesopportunitiesforcontinuousimprovementoftheseprocesses.Belowwedetailtherisksidentifiedintheeconomic,socialandenvironmentalareas,accordingtotheircriticallevelbyseverityandprobabilityofoccurrence,andtheactionstakenfortheirmitigation,in2015.
Riskdescription Mitigationactions Severity Probability Risk
► Economic aspects that could decrease the cash flow (volatility of gold and copper prices, inflation rate)
• Theprocessofbusinessplanning,enhancedin2015andensuringthecontinuityoftheoperationalplandelivery
• Understandtheoperatingrisksandimplementeffectiveactionstomitigatethem.
• Keepfocusedoncontrollingcostsandmeasuresofreduction
8 9 72
► Increasing social pressure, conflicts and higher expectations of the communities
• Obtainsocialpermits• Constantrelationshipandcommunication
withthecommunityandstakeholders• Properlyplannedandtimecontingenciesto
mitigateconflicts• Strictmonitoringandfeedbackofallthe
commitmentsofthecommunity
6 8 48
► Increased regulatory oversight. Procedures for inspections and sanctions
• Aggressiveprocessofpreventionratherthanchallengepenaltiesandfines
• Strictcompliancewithregulationsthroughconstantmonitoringandinternalaudit
6 7 42
► Government / political instability / election year
• Implementcontingencyplanagainstcrisis• Continuedialogueandrelationswith
authorities• ActiveparticipationintheCajamarca
ChamberofCommerceandtheSNMPE.
6 5 30
► Houses in risky safety /Transport concentrate to the port due to the el Niño phenomenon
• ContinuetosupportthemultisectorialCommittee,responsiblefortheevaluationandrepairofhousesatriskofcollapse.
• Evaluatealternativeroutes• Assessandallowtheabilitytoconcentrate
additionalstorage
6 4 24
2015
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Sev
erit
y
Probability
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10
5 4 23
1
The principle of risk prevention also applies to processes carried out by third parties, who have the
responsibility to be aligned with our requirements; for this reason,
controls and audits are carried out to ensure compliance.
5.2 Integrated Policy on Strategic Goals Related to Safety, Occupational Health and Environment► Incorporatesafety,occupationalhealthand
environmentalmanagementinoperationalandadministrativeprocessesdevelopedwithinourminingactivity.
► Countwithanintegratedsystemofsafety,occupationalhealthandenvironmentalmanagementbasedonthecontinuousidentificationofhazardsandenvironmentalissues,riskassessmentandevaluationofenvironmentalaspects;toprioritizecontrolsforhighriskactivitiesandsignificantenvironmentalaspects.
► PreventinjuriesandoccupationalillnessesofGoldFieldsLaCimaS.A.staff,contractorsandvisitorswhohaveaccesstoouroperationsandadministrativeactivities,especiallyinoccupationalexposuretodustandnoise.
► Avoidpollutionbyexecutingprocedures,practices,methods,materials,products,servicesorenergiestoavoid,reduceorcontrolgeneration,emissionordischargeofanykindofcontaminantorresidue,inordertodiminishenvironmentalimpacts.
► Optimizetheuseofconsumableresources;equally,andwhereverpossible,promotewastereduction,reuseandrecycling.
► TrainGoldFieldsLaCimaS.A.personnelandcontractorsinsafety,occupationalhealthandenvironmenttocomplywiththeirobligationsandresponsibilities.
► Upholdaprocessofcontinuousperformanceimprovementoftheintegratedsafetymanagement,occupationalhealthandenvironmentsystemswiththeparticipationofstaffandcontractors.
► ComplywiththerequirementsofsafetyandoccupationalhealthregulationssetforthbytheMiningSector,nationallegalregulations,internalrulesandotherrequirementsinforceandapplicabletosafety,occupationalhealthandenvironmentalmanagement.
5.3 Integrated Management System (SSYMA)TheimplementationofSSYMAisasharedresponsibilityamongtheCEO,wholeadsitsapplication,supervisorsandemployeesingeneral,whoimplementstandardsintheirdailywork.InOctober,2015,thecertifyingcompanyAENORPeruS.A.carriedoutarecertificationauditoftheIntegratedManagementSystemSSYMA.ISO14001:2004andOHSAS18001:2007standardswererectifiedforthenextthreeyears.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“Company has as corporate policy to achieve a high level of occupational safety and health for all employees and contractors, taking always into account the premise “if not
we can operate safely, do not operate”. In this way, we seek that safety is recognized as everybody’s responsibility and as our main value.
It is known that the company’s success, based on safety, is held on a platform of values, standards and policies followed by employees and contractors; its pillars are effective communication, constant training and organizational alignment toward safe behavior.”
SafetyandOccupational
Health
6
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
6.1 Committee on Safety and Health at Work [G4-LA5]PursuanttoLaw29783ofSafetyandHealthatWork,theparitystructureoftheCommitteehasremainedthesame.Itisconstitutedbyequalnumberofcompany’sofficialsandemployees.Committeemembersareelectedbyvote,representing3%ofthetotalnumberofemployeesanditisformedasfollows:
► GeneralManager
► ProcessesManager
► SafetyandOccupationalHealthManager
► HeadofHealthandWelfare
► MineManager
► 5representativesofworkersafety
It is important to highlight that in 2015 the Committee maintains ongoing communication with employees and, at the same time, it has been an effective link with the area of Safety and Occupational Health.
Ontheotherhand,thecompanycontinuedparticipatingintheIndustrialSafetyCommitteeoftheNationalSocietyofMining,PetroleumandEnergy,whichaimstobeaspacefordialogue,adviceandexchangeofbestpracticesontheminingsectorsafety.
TheEmergencyResponseserviceisstillactive,andinstrategicpositionsthereisspecializedpersonneltrainedforthispurpose(paramedicsandrescueworkerswithprovenexperience).
Inaddition,thecompanyisassociatedtoSARCC(CoordinatingCenterforSearchandRescue)oftheNationalSocietyofMining,OilandEnergy.
2015 SafetyandOccupational
Healthobjectives Improvetheprocessesof
stafftrainingandawarenessinrelation
toSOH.
Improveoperational
controlsinrelationtooccupationalhealthand
industrialhygiene.
AchievesafetyratesforFatal,LossTimeandMedicalTreatmentinjuries.
ImprovetheparticipationoftheSafetyandHealthatWorkCommitteeintheManagementSystemofSafetyandOccupationalHealth. Improveoperational
controlsinrelationtostaffergonomic
hazardsthatperformGFLCadministrative
activities.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
6.2 Culture of PreventionAseveryyear,thecompanyworksunderapreventionculture,sothereareinitiativespermanentlyimplementedinordertopreventandcontrolconditionsorfactorsthatmayaffectemployees,contractorsandvisitors;soastoavoidsituationsthatcauseormaycausepropertydamageandprocesslossesintheworkplace.Initiativesimplementedin2015,include:
ZeroIncidentsPact
ThisPactissignedbyemployeesandcontractors,andaimstoformalizethecommitmentofemployeestowardssafety.ThePactincludesinformationofmainsafetystandards.
“SafetyBasedonBehavior”Program
Itisintendedforlaborforcewithnosupervision,havingasmainpurposepromotinganactiveroleincompany’ssafety.Therefore,itisexpectedtohavetrainedobserverstopreventunsafebehavior,byhavingacloseinterrelationshipbetweencolleagues,inordertocreatepositivefeedbackaspartofateam’swork.Thecomponentsoftheprograminclude:• IncreasethenumberofBehavioralObservingRecord(ROC)presentedmonthly.• FormnewgroupsofLeadersandObservers.• Encourageandrecognizetheparticipationintheprogramofallemployees.• Permanentlytrackprogram’sLeadersandObservers.• Runthe“LearnedLessons”actionplansproposedintheprogramcommittees.• Takepartinthecampaignsanddisseminationoftheprogram.• Proposeideasandinitiativesfortheimprovementoftheprogram.
FairoftheObserver
ItisanactivitythatallowscommunicatingabouttheSafetyBasedontheBehavior(SBC)programandbasicsafetyconceptsinafunandentertainingway,reachingavastaudienceinaspaceinwhicheachworkerisinvitedtothinkontheactivecareprinciple.
“VisibleLeadership”Program
Itisintendedforlinesupervisorsandseekstoformfunctionalleaderswhomotivateidentificationofactsandunsafestaffactionsunderhis/hersupervision.Sowhentheseactionsareidentified,aconstructivedialogueiscarriedouttoimplementthenecessarycorrectivemeasures.ThisprogramwaslaunchedinNovember2015,anditisexpectedtosupporttheprocessofanorganizationalculturebasedonsafety,generatingasystematicprocessandnotonlyreachingthesafetyKPIs.
Initiativesimplementedin2015
Culture of Prevention
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
In2015,thecompanykepttheserviceofanin-housepsychologistinordertoprovidesupportandpsychologicalassessmenttoemployeesaspartoftheOccupationalHealthProgram.
Inaddition,wecontinuedhavingaprogramofhealthmonitoringwhichconsistsontakingthreetypesofexaminationstoallemployees.Theyassessbothpsychologicalandthephysicalareas.Theexaminationsscopesareasfollows:
Pre-occupational examination:
MandatorytoallapplicantsofGoldFieldsorcontractor
companies.
Annualexamination:
Hasthepurposeofverifyingthehealth
conditionofemployeeswhileworkingforthe
company.
Exit or termination examination:
Performedwhentheemploymentrelationshipendswiththecompanyorwithanycontractor
company.
Occupational health initiatives also include monitoring and control of physical, chemical, biological and ergonomic working environment agents that could harm
employees and contractors staff health.
6.3Occupational
health
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ProgramsofGeneralInduction[G4-LA9]1 2014 2015
Numberoftraininghoursperyear 58,310 61,552Numberofparticipantsperyear 3,808 3,847Averagetraininghoursperemployeeperyear 15 16
TraininginOccupationalHealthandSafetyPrograms 2014 2015
Numberoftraininghoursperyear 111,448 135,526Numberofparticipantsperyear2 8,684 7,444Averagetraininghoursperemployeeperyear 52 55
DefensiveDrivingTrainingPrograms 2015
Averagetraininghoursperyear 7,316 8,812Numberofparticipantsperyear 1,517 2,202Averagetraininghoursperemployeeperyear 4.8 4
Typeandrateofinjuries,occupationaldiseases3,lostdays,absenteeism,andnumberofwork-relatedfatalities 2014 2015
Numberofwork-relateddeaths 0 0Numberoflostdays4[G4-LA6] 34 185Injuryratewithlostdays(IFN)5 0.19 0.16Rateoflostdays6 6.42 28.89
1 It has not broken down by gender and occupational category 2 Includes personnel of Gold Fields La Cima and contractors.3 Occupational health diseases have not been diagnosed.4 Correspond to lost days of a contractor worker disabled by an accident in Cerro Corona operation.
Calendar days are considered.5 Rate requested by national legislation.6 1,000,000 rates according to Peruvian law.
Safety and Occupational Health
Performance Indicators
Absenteeismratebygender[G4-LA6] 2014 Rate1 2015 Rate1
Totalworkeddays 132,480 135,000Men 1,803 1.65% 2,351 2.11%Women 554 2.40% 341 1.43%Total 2.357 1,78% 2.692 1,99Absenteeismratebyregion[G4-LA6] 2014 Rate1 2015 Rate1
Totalworkeddays 132,480 135,000Cajamarca-Ciudad 53 1.6% 38 1.1%CerroCorona 2,115 1.9% 2,418 2.2%PuertoSalaverry 3 0.2% 10 0.7%SantiagodeSurco 186 0.87% 226 1.1%Total 2,357 1.78% 2,692 1.99%
1 There have been considered as total worked days 12 months of 30 days. Data include only Gold Fields La Cima staff.
6.4 Next StepsAbiannualidentificationprogramwillbeheldforcontractorsinrelationtogoodsafetypracticesseekingtocreatemodelstofollow.
Wewillcontinuewithcampaignstoachievegreatercompanyemployeesandcontractors’awarenessasacentralfactorintheiractivitiesandresponsibilities;especiallythroughaparticipatoryprocesstoraiseconcernsandsuggestionsthatwillservetoimprovementidentifyopportunities.Tothisend,workingcommitteeshavebeenestablishedwithspecificprojects.
Thematurationof“Visibleleadership”and“SafetyBasedonBehavior”programsisexpectedtobeachieved.
Inaddition,theeffortofapermanentupdateofsafetyandoccupationalhealthprocedureswillbemaintained.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
“In 2015, we continued consolidating the business Shared Value model. The company obtained a special recognition of the Good Employers Association,
sponsored by Lima’s Chamber of Commerce, for the employee benefit program; it was nominated, as well, in the categories of: Best Healthy Lifestyle Promotion Program, Best Benefits Program and Best People Development Program, being
Gold Fields La Cima the only company in the mining sector with three nominations and an honorable mention.”
SocialResponsibilityManagement
8
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
In 2015, we continued consolidating the business Shared
Value model. The company obtained a special recognition of the Good Employers
Association, sponsored by Lima’s Chamber of Commerce, for the employee benefit program; it was nominated, as well, in the categories of: Best Healthy
Lifestyle Promotion Program, Best Benefits Program and Best People Development Program, being Gold Fields La Cima the only company in the mining sector with three nominations
and an honorable mention.
Aseveryyear,wecontinuedwiththedesignoftrainingprogramsallowinganindividualprofessionaldevelopmentof
eachemployee.
Inaddition,giventhesituationintheminingsector,thecompanycontinuedworkingintalentretention
programs,reinforcingattractiontobepartofthecompany,throughbenefitsand
personal-worklifebalanceinitiatives.
8.1Our Team
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Strategic GoalsGoldFieldsoverallstrategyregardingitsemployeesisbasedonsevenlinesofwork:
1 Attract and Retain: Createanattractivevaluepropositionforcurrentandpotentialemployees.
2 Talent and Leadership: Developatransparenttalentmanagementstrategy,basedoncompetenciesanddevelopmentplans.
3 Learning and Development: Designandimplementacomprehensivelearninganddevelopmentstrategyforallemployees.
4 Changes and Communication: Implementandeffectiveinternalcommunicationstrategythathelpsreachinggoalsofhumanresourcesmanagement.
5 Compensation: Developaremunerationstrategyalignedwithperformanceevaluations.
6 Structure: Ensurethattheorganizationalstructurehasthenecessarycapabilitytoimplementasuccessfulhumanresources.
7 Information System: Designandimplementaninformationsystemthatwillsupportthehumanresourcesstrategyinthelongterm.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
1 Beacompanythatyoucanbeproudof.2 Celebrateachievements.3Treatyouwithrespectandworkwithyoutoensureyourhealthandsafety.4 Provideadequatedevelopmentandsupportsothatyouachievesuccess.5Withyourhelp,makeGoldFieldsLaCimathe“BestPlacetoWork”.
Gold Fields La Cima’s commitment
to its employees
Officialsbygender 2014 % 2015 %
Men 51 82 56 82
Women 11 18 12 18
Total 62 100 68 100
Employeesbygender 2014 % 2015 %
Men 253 83 253 82
Women 53 17 54 18
Total 306 100 307 100
Bytypeofcontract1 2014 % 2015 %
Permanentcontract
Men 234 82 247 80
Women 53 18 60 20
Total 287 100 307 100
Temporarycontract
Men 70 86 62 91
Women 11 14 6 9
Total 81 100 68 100PersonnelassignedtotheAreaofDirectInfluenceaccordingtocommunity2 2014 % 2015 %
Coymolochevillage 51 12 26 6
ElTingopeasantcommunity 82 19 78 17
CityofHualgayoc 228 51 310 68
LaJalcaPilanconesextension 82 19 41 9
Total 443 100 455 100
1 It does not include specialized contractor personnel
2 Includes Gold Fields La Cima and contractors and subcontractors
Workforce Structure [G4-10]
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
OtherindicatorsG4-LA1 2014 2015
Averagerotationofemployees 14.67% 10.40%
Personnelineachsite 2014 2015
CityofCajamarca
Female 6 6
Male 3 3
Total 9 9
CerroCorona
Female 265 272
Male 31 32
Total 296 304
Lima
Female 29 27
Male 30 31
Total 59 58
Salaverry
Male 4 4
Total 4 4
Total 368 375
Workforce Structure [G4-10]
Personnelbyregionoforigin 2014 % 2015 %
Arequipa
Men 20 91 17 81
Women 2 9 4 19
Total 22 100 21 100
Cajamarca
Men 131 90 128 89
Women 15 10 16 11
Total 146 100 144 100
Junín
Men 13 87 15 88
Women 2 13 2 12
Total 15 100 17 100
LaLibertad
Men 17 74 21 84
Women 6 26 4 16
Total 23 100 25 100
LimaandCallao
Men 81 70 80 70
Women 34 30 35 30
Total 115 100 115 100
OtherDepartments
Men 39 91 46 92
Women 4 9 4 8
Total 43 100 50 100
International
Men 3 75 2 67
Women 1 25 1 33
Total 4 100 3 100
Total 368 375
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Social Benefits Beyond the Law [G4-LA2]ForGoldFieldsLaCima,healthandwellbeingofitsemployeesandtheirfamiliesisessentialtoachieveanenvironmentwhereeveryonecanperformtheirdutiesproperly.Therefore,achievingabalancebetweenworkandpersonallifeofitsemployees,aswellastosharewiththemimportantmomentsintheirlives,isachallengethatourHumanResourcesteamassumesbyimplementingseveralbenefits.Theseincludethefollowing:
Health• HealthPlan(EPS)foremployeesandtheirdependents,covered100%bythecompany• Cancerinsuranceforallemployeesandtheirdependents• LifeInsurance(SegurodeVidaLey)fromthefirstdayofwork• BusinesstravelandholidaysInsuranceforcertainemployeesandtheirfamilies(30days).• Annualpreventivehealthcheckupsinallspecialtiesforallemployees.• Dietandhealthylifestyleprogram“VidaSana,VidaGoldFields”.• Seriousdiseasespolicyforareaheadsandmanagers.• Healthcampaignsforemployees(influenza).• Healthtalksforemployeesandspouses.
In2015,the“VidaSaludable”(healthylife)programincluded:• Thursdaysoffruit• Stretchingsessions(ActiveBreaks)• Nutritionistassessmentindiningroom• Wellbeinglecturewithexternalguests
Education• Schooltuition:thecompanyprovidesbetween80and90%ofschooltuitionandregistrationpaymentfor
employees’childrenbetweenages3and18.
Financial• Loansincaseofhealthproblemsordeath:thecompanyprovidestheequivalenttotheamountofremuneration
tothoseemployeeswithoversixmonthsworkingforthecompanyincaseofunforeseenhealthneedsordeathoftheirdependents.
• Salaryadvance(twocontinuoustimes,atfreerequestoftheemployee)• Financialassistanceforrelocationandtransferofthoseemployeeswhoduetoworkreasonsshouldbe
transferredtoacitydifferentoftheirhabitualresidenceplace.• Annualandlong-termbonusesforofficersandefficiencybonusforstaff,paidquarterly,basedonthe
achievementofgoalsandpoliciesofthecompany.• Discountsandcorporateratesinvehicleinsurancepoliciesandhotelaccommodations.
√
√
√
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Sports • Organizationofannualsportschampionshipstointegrateemployeesand
contractors.• SportsprograminLima:Zumbalessonsandcalisthenicsatwork.
√
Festivities• LaborDay,Mother’sDay,Father’sDay,Miner’sDayandNewYear’sEve.• ChristmasforChildren(LimaandCajamarca).• IntegrationGincana(LimaandCajamarca).• Halloweencelebration(LimaandCajamarca).• “Unsha”celebration(Cajamarca).• EndoftheyearpartyinCajamarcawiththeparticipationofallemployees
√
Work-personal life balance• Christmasbonus.
• Christmaspresentsforemployees’children.
• FlexibleandsummerscheduleforLimaandCajamarcaemployees.
• Workshopsandlecturesaboutwellbeingforemployeesandspouses/partners.Forexample:spiritualintelligence,howtounderstandYandZgenerations,amongothers.
• Paidleavefordeathofparents,spouseorchildrenupto7days.
• Paidleaveforstudies:whenemployeestartedacourserelatedtohis/herwork,andbeingapprovedbythecompany,thecompanygrantsapaidlicenseforpurposesofstudyandexams.
• Unpaidleaveduetosickrelatives(wife,children,parents,siblings)ofupto8consecutivedays.
In2015,the“TesoroGoldFields”(GFTreasure)programincluded:• GiftCard(“sweetenthedayofthoseyoulovemostwithacake”).• Paidleaveforcivilmarriage:Threedays• 2daysofrest• Paidpaternityleave:fivedays(anadditionaldaytolawprovides).• ContestquestionstogetadoubletickettoanydestinationofPeru.
ParticipatinginraffleorganizedbytheHumanResourcesgivesemployeesacloserlookatkeyinformationofthecompany.
√
Camp Services Inanefforttoprovideabalancebetweenworkandpersonallifeofitsemployees,thecompanyprovidesadequatefacilitiesatthecamp;theservicesfreeofchargeavailabletoemployeesare:
a. Accommodationinmodulesadaptedtotheweatherconditions.
b. Laundryservice.
c. Recreationareawithgames,karaokeandcinemaroom.
d. Internetaccessintherooms.
e. CableTV
f. Grillarea
g. InternaltransportationofstaffandtransportationbetweenCajamarca-CerroCorona,andviceversa.
h. Properinfrastructureforadiningroomwithahighstandardcateringservice.
i. Nutritionalmonitoring.
In 2015, the following facilities were inaugurated:
a. IndoormultipurposeCourt(football,basketballandvolleyball).
b. “CoronaActivo”:newgymwithmachinesandfreeweights.Itcountswithspecializedinstructors.
c. “GrillCorona”:spacewithgrills,ovens,andcylinders.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
CompensationsInordertomaintaininternalandexternalequity,makingsureGoldFieldssalaryscaleisintheminingmarketmedian,in2015thecompanycontinuedwithanattractivecompensationpolicy,applyingefficiencybonusesforthestaffinreferencetocompany’sgoalfulfillment;andconsideringindexessuchascostsavings,safetyandproductionlevels,amongothers.Likewise,officersreceiveaforlongtermmonetarybonus,whichisassignedannuallyandpaidafteraperiodofthreeyearsatGoldFieldsLaCima.ThisincentiveseekstorecognizeperformanceandindividualcommitmentofourleaderstotheresultsoftheCorporation.
Labor Relations [G4-11]In2015,coordinationwiththecompany’sUnionhasbeenongoinginordertomaintainawell-beingworkenvironmentforallemployees.GoldFieldsLaCimahasaUnionformedmainlybystafffromcommunitiesandrepresents13%ofthetotalworkforce.Thecollectiveagreementappliesto100%oftheemployeesandisvaliduntilJune2016.
“In 2015, Talent Management has continued looking for employees’ maximum performance with the support leadership programs, career lines for administrative and technical staff with the creation of individual development plans. This has been done with the general purpose of achieving a greater impact on each employee.”
Talent Management
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Development and Training Programs [G4-LA10]• Programa Construyendo (Building Program):Career
linefortechnicalandoperativestaffintheseveralcompanylevels.Itsgoalsare:
► Knowthestrengthsandskillsofeachemployeetoimprovethemandtocontinue
► Createdevelopmentplansforeachpositionandemployee.
► Topresentthehorizontalcareerlineasverticaloftechnicalandoperatingpersonnel.
During2015,124employeesfromseveralareasoftheoperationparticipatedinthisprogramandithadthenextsteps:
► Definition,criteriaandstructureofjobprofiles.
► Designofassessmenttools.
► Applicationoftestsandindividualinterviews.
► Definitionofpositioncategorization.
► Deliveryofresultsofbaselineofeachcollaboratorandtheindividualtrainingplan.
► Implementationofdevelopmentplansthrough“inhouse”courses,accordingtothetechnicalrequirementsandmanagementofeachemployee.
• DELTA Program: Developing your leadership and talent
Theprogramallowstoclearlyidentifyingstrengths,potentialimprovementanddevelopmentareasforprofessionalgrowthanddesigninganeffectiveindividualdevelopmentplanwithinanycompany.
Basedontheseassessments,individualisgivenbyaconsultant,inordertohaveanobjectivetalentassessment.Then,withthesupportoftheemployee’ssupervisorandconsultant,anindividualdevelopmentplanisdesigned.Theprogramincludesdiagnosis,feedback,a360°evaluation,andtwomeetingswiththeimmediatesupervisorsoparticipantscanevaluatetheprogressonthedesigneddevelopmentplanandbeupdatedwithhis/herimmediatesupervisor’ssupport.
Employeesparticipateinworkshopsinstrategicplanning,feedbackandsetgoalsforthedevelopmentofcompetences,amongothers.
TheprogramisdirectedparticularlytotheexecutivecommitteeandmanagersofoperativeareasatCerroCorona;however,thisisaprogramthatisimplementedgradually,sogiventhesuccessobtained,in2015theothermanagerswereincluded.
• “Escuela Gold Fields” (Gold Fields School): Inordertoenableemployeestomeetcompanyneeds,during2015havecontinuedwiththeimplementationofcross-cuttingcoursesforallemployees.Thecurriculahavebeenmodifiedwithcoursesseekingthedevelopmentofvariousskills,focusedonthefollowingmodules:
LeadershipSkillsOfficeSkills
Business understanding Personal Leadership Domain Relations Domain Team Leadership
Domain
FoundationalProgrammeWorkshop
ConflictsManagement
PresentacionesdeAltoImpacto
Leaderascoach
GoldFieldsfeedbackmodel
Excel,Power
Point,etc.
FoundationalProgrammeWorkshop
BudgetCourses
Organizationand
Planification
Socialskillsandmanagingemotions
Highimpactpresentations Leaderascoach
GoldFieldsfeedbackmodel
FoundationalProgrammeWorkshop
Assertivenessandcomunicationcourse
EnlistmentintheGoldFieldsfeedbackmodel
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
• Leadership Program: In2015theimplementationoftheGoldFieldsManagementProgramcontinued,aimedtoemployeesfromdifferentareasofthecompanythathavepersonnelincharge.
Itsgoalistheimprovementofcompetences;itinvolves360°assessments,twoannualmeetingswiththeconsultantandtheVicePresident,whichcorrespondstotheemployeeoftheyear,inordertodefineanindividualdevelopmentplan.
ThisprogramwasdevelopedwithDukeUniversityandbeganin2014withaparticipationof14employees;in2015,theprogramconsistedofanimmersionweekof26newparticipants.Thefollowingtopicswerereviewedinthisprogram:
► GoldFieldsstrategy:global,localandcompany’scontext.
► Financialunderstanding.
► Relationshipwithstakeholders.
► Leadershipofhigh-performanceteams.
► Leadingothers:coachingandfeedback.
Attheendoftheprogram,participantshadaccomplishedanapplicativeworkoneverythingtheylearned;theyobtainedadviceandcoachingbyaconsultantinordertostrengthenitsimplementation.
• Scholarships Program:Aseveryyear,thenominationsarereviewedbyanevaluationcommitteewhichisresponsibleforanalyzingaseriesoffactorssuchasemployee’sperformanceandachievements,therelevanceofthechosencurriculaimpactintheemployee’srolesandtheareaobjectiveswherehe/sheworks;aswellastheimplementationprojecttobeachievedbytheapplicantthroughtheknowledgeacquired.
During2015,thisprogramallowedeightemployeestohaveaccesstomaster’sdegrees,postgraduatecourses,specializationcoursesanduniversitydegrees,co-financedbyGoldFieldsLaCima.
• Gold Fields Feedback Program:ThefeedbackmodelisbasedontheSBItechnique:DescribeconcreteSituation;describeobservableBehavior;reviewImpactofthesebehaviors.
Theprogramaimstopromoteobjective,positiveandhorizontaldiscussionsontheactivitiesofthecompany.Itincludesmeasurementthroughsurveysthatrecipientsmustcompleteontheobtainedfeedback.
In2015,thecompanysoughtalsotoconnecttheprogramwiththedevelopmentofcases,roleplayamongthepersonnelandfollowheadquarters’feedbackmodel.
• Teambuilding Workshops:TheyaredirectedtoCerroCorona’smanagementinordertostrengthenteamwork.Forthisreason,throughdynamics,communication,trust,resultsandcommitmentsarereviewed.Thisprocessissupportedbyaninternationalconsultant.Theseworkshopsenabledeachmanagerleadertogetclosertohis/herrespectiveteams.
1 It Includes technical courses, defensive driving courses and safety induction, training at Escuela Gold Fields and safety programs.
2 It is not technically feasible to submit information by category
Training Programs[G4-LA9]
Number of training hours per year 1
2014201538,012 38,491
Number of participants per year20142015381 403
Average training hours per employee/year20142015
99 96
Training Management
Indicators
Training programs [G4-LA9]2
Training hours
MenWomenTotal 32,970 5,521 38,491
Participants
MenWomenTotal 342 61 403
Average per person
MenWomenTotal 96 91 96
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Performance Management [G4-LA11]The Performance Management, through the Balanced Scorecard methodology, provides to all employees the communication framework of the Organization’s mission and strategy, with the purpose of directing their efforts to achieve the Organization and area objectives, as well as personal goals.
Thisgoaldefinitionisdoneincascade,ensuringthateveryoneisawareaboutcompany’sobjectivesinthelongrun.Therefore,100%employeesareabletodefinestrategicobjectivesandoperationsaccordingtotheirroles,allowingfulfillmentassessmentoftheirobjectivesoverasetperiodoftime(fromJanuarytoDecember).
Theprocessincludesamid-yearevaluationofeachemployeetotakecorrectiveactionsenablinghim/hertoachieveagoodperformancebytheyearend.Theultimategoalistoachievecompany’sgoals.
Individually,theresultsofthefinalevaluationenabledecisionsrelatingtosalary,accesstotrainingprograms,promotionsandcareergrowthwithinGoldFieldsLaCima.For2016,aplatformnameSuccessFactorswillenabletohavespecificactionplans.
Programa Jóvenes Talento (Youth Talent Program)Thisprogramhasthepurposeofattractandtrainyounggraduateprofessionalsorthosewhoareenrolledinthelastsemesterofseveraluniversitiesinthecountry,whohavepotentialtoassumestrategicpositionsandbefutureleadersinGoldFieldsLaCima,intheminingsectorandinsociety.
Itshouldbenotedthattheprogramhasdurationofoneyearandthatuponenteringparticipantsgothroughalearningprocessacrossthedifferentareasofthecompany.Aspartoftheprogram,eachparticipanthasatutorthatwillaccompanyhim/herthroughoutthelearningprocess.
During2015,thefourthYouthTalentclassbegantheprogramwiththeparticipationoftenyoungpeople.
Work EnvironmentEvery two years we measure employees’ satisfaction level; in 2015 we measured the level following the method of Great Place to Work consulting firm. The results of this survey were highly satisfactory, resulting in 81% satisfaction, 12 points above 2013. Since 2015 workshops have been carried out to define the work environment plan in each area, in order for all the leaders to achieve better results.
Health and Social WelfareGoldFieldsLaCimahasanareainchargeofensuringthecompany’spresenceamongemployeesandtheirfamilieswhentheyneedit;incaseofillness,death,etc.;italsoprovidespermanentsupportattheminesiteorthroughtelephoneassistanceintopicssuchasinsurancepolicies,complexdiagnosticsorpaperwork.Thepurposeistostrengthenthesenseofbelongingtothecompany.
During2015thecompanycarriedoutvariousworkshops,suchasthe“Spiritualintelligence”,“DesigningaHappierLife”,“Don’tGiveUp:ManageAdversity”,whichhavebeenorganizedwiththesupportofspecializedconsultants.Therehavealsobeenorganizedcampaignstopromotehealth,suchas:anti-stressmassages,preventionofmusculoskeletal,respiratory,gastrointestinal,ophthalmologicandcervicalcancerdiseases.Themostrelevantintegrationactivitiesinclude:Worker’sDay,Father’sday,HalloweenPartyforChildren,ChristmasforKids,EndoftheYearParty,Births’Contest,and,finally,thefirstsolidarityvolunteerworktookplace.
In2016,itisexpectedthattheorganizationofvolunteerworkactivitieswillbesupported,enhancetheprogramofhomevisitsinCajamarca,Hualgayoc,Trujillo,Chiclayo,PuertoSalaverryandLima;andcontinuetoworkontheidentificationofskillstostrengthenindividualcompetencies.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Internal CommunicationIn2015wehavedevelopedvariousinitiativeswiththeaimofintegratingthecompany’sstaff.Amongthem,are:
• I am Gold Fields Intranet
Itseekstocontributetoaculturalshiftinthewaypeoplework,whilewiththecompany’scommunicationsitisexpectedtogaingreaterconnectionandagilitythroughasimple,usefulandaccessiblewebportal(intranet)thatallows:
► Communicate:News,institutionalinformationandbenefits.
► Integrate:accesstoinformation,tools,strengtheningofrelations.
► Facilitate:Exchangeofinformation,identificationwiththecompany,organizationalalignment.
ToDecember2015,29,712sessionshavebeenregistered,withanaverageincomeofvisitsof7,428permonth,1,747perweekand247perday(includingweekends).
Itisworthnotingthattheplatformincludesareastopromotetheinterrelationshipamongemployees,suchas:
► InformativoExpress(NewsExpress):itisasectionofbriefingnotesrelatingtothecompany,accompaniedwithphotographsorvideosgalleries.
► Calendarofevents:calendarofeventsformassparticipationascelebrations,anniversaries,etc.Inthesameway,itincludesdatesofhealthcampaignsorothereventrequiringtheconveningandparticipationofseveralsitesemployees.
► WeAreWorthGold:sectionwherecolleaguescannominateothercolleaguestoparticipateintherecognitionprogram“WeAreWorthGold”,whichdistinguishespubliclyemployeeswholivedaytodayGoldFieldsvalues.
► TheBoutique:spacetobuyandsellproducts.
• Employer Brand
EmployerbrandstrengtheningofGoldFieldsLaCimahasworkedontwofronts:academicandinstitutionallevel,andmedialevel.
Atacademicandinstitutionallevels,ourpresencehasbeenineducationalinstitutions,incongressesandfairs.WewerepresentatTecsup,bothinLimaandinTrujillo,andatthePrivateUniversityoftheNorth(Cajamarca-based),aswellasattheInternationalCongressofMiningStudents,aneventthattakesplaceeverytwoyearsinPERUMIN.
Inthelatter,weparticipatedinlectures,workshopandmentoringwithaboothatthejobfair,interviewingattendees,andcommentingaboutcompany’shumanresourcesmanagement.
Inthemedia,weseekthecompany’spresenceinmassmedia,providinginformationfortalentattractiontoGoldFieldsLaCima.Theparticipationofcompanyofficersstandsoutatdiverseeventswiththesamepurpose,includingtheVicePresidentofHumanResourcesassistanceintheactivitiesattheWomenMinersCongress(WAAIME).
• Niagara Project
Itisdirectedtoleadersofdiverseareasofthecompany.Thisprojectestablishedacommunicationcascadingmethodologyfromleaderstoemployees.Itintendstoestablishprocessestodevelopkeymessages,withthesupportofanexternalcoach.Itallowsdefiningguidelinesforinternalcommunicationsunderadequateform,environmentandconditions.Forthispurpose,aguideofquestionsandanswersisprepared,anditisstandardizedsothecommunicationprocessaccordingtothecase.Anexampleofthiscommunicationmethodologyapplicationisthecompany’sBalanceScorecard.
• “On Board” Induction Program – “Ruta de Oro” (Gold Route)
Itistheprocessofinductionandre-inductiontoGoldFields,forwhichaspecialpresentationoftheapproachtothecompanyhasbeenmade,bothfornewandcurrentemployees.
Also,awelcomekitishanded,whichincludesafolderwithinformationfromdifferentareasofthecompanyandmerchandising.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Next StepsItisexpectedtocontinueworkinginthedevelopmentoftrainingprogramswithefficiency,rethinkingtheconcernsinmanagingtalentalignedtocorporategoals.Thecurriculawithinternaltrainerswillcontinuetobeadequate,seekingtocapitalizetheknowledgeofourownpeople.
Likewise,itwillbesignificanttoinstitutionalizeindividualplansdevelopmentforeachemployee,includingbestpracticesinmentoring,rotationofpersonnelbetweenareas,implementationofspecialprojects,internships,andrelocationofstaffinothercountries,amongotherinitiatives.
Amajorchallengewillbekeepingthegoodworkenvironmentinthecompany,pursuingtobecomealeaderintheminingsector.Similarly,reinvigoratetherecognitionprogram“WeAreWorthGold”,whichallowscolleaguestonominatethosecoworkerswholivecorporatevaluesdaytoday.
The“Culture1,500”programwillbeimplementedaspartofthefourstrategicpillarsdeterminedbyGoldFieldsthisyear.ThisprogramseekstointegrateallemployeesofCerroCorona,includingcontractors,throughthedifferentactivitiescarriedoutduringtheyear,suchas:culturalevents,informationscopereinvigorationwiththequarterlypublicationofamagazinerelevanttoall.Wehavebeenworkingontheinitiative“CerroCoronaHeroes”,invideowithtruestoriesofemployeesandcontractorswhohaveexcelledandwhosebehavior,governedbyGoldFieldsvalues,canbeusedasapositivereferencefortheentirecompany.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Training and development of local
contractors and suppliers has been a major Shared Value model issue with stakeholders. Both have sought to meet
business needs with a positive social impact of growth and profitability.
GoldFieldslaCimabelievesthatitssuppliersandcontractorsarestrategicpartnersincomplyingwithoperationalandsustainabilitygoals.Inthis
context,eachyearwearelookingfornewinitiativestofaceagreatchallenge:thepromotionofemploymentandlocal
businesses.[G4-21]
8.2Our
Contractors and Suppliers
[G4-12]
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Promotion of Local Employment and BusinessesInJuly2014,thelocalsuppliersstrengthening‘Successfulentrepreneurs’programbeganwithSwisscontact’ssupport,internationalcooperationentity.ThegeneralobjectiveoftheprogramistoincreasetechnicalandbusinesscapabilitiesofHualgayoc’ssuppliersandcontractors.
Theprogramstagesincludedimplementationofdiagnosticsforeachparticipatingcompany,todevelopthenaspecificactionplanwithanindividualtechnicalassistanceprogram.Thisincludestrainingworkshopsintheidentifiedareasforimprovementinordertoachievemorecompetitiveenterprisestomeetnewbusinessesandmarkets,i.e.,supportingthebeneficiaries’commercialintegration.
TrainingPrograms
ActionPlanDiagnosisRegister Comercial
IntegrationTechnical
Assistance
Managementsystem of
localsuppliers
Certification
Stages ofthe program
Source: Stages of the program extracted from the Swisscontact report
Ontheotherhand,aninformaticstoolhasbeendevelopedfortheevaluationoflocalsuppliersonanongoingbasis.Thedesignofthissystemwascarriedoutduring2015,anditwillstartoperatingatthebeginningof2016.Themainevaluationcriteriaincludedare:safetyandoccupationalhealth,servicequality,laborobligationscompliance,carefortheenvironment,andsocialresponsibility,etc.Thisapplicationwillbeimplementedwithlocalsuppliers,andthenitwillbecomeanevaluationstandardofallcompanysuppliers.
Monitoring of labor obligations fulfillmentDuring2015,withthesupportofaspecializedservice,wecontinuedfollowing-uponthefulfillmentoflaborobligationsofthemainGoldFieldsLaCimacontractors.Thispracticehasidentifiedsomeimprovementopportunities,whichhavebeencarriedoutwiththedecidedsupportofthecontractors.
For2016,thecompanyhiredanewinformationsystemfortheminingsectorconsideringhomologationparameters,riskmanagement,financialmanagement,businessexperience,amongotheraspects,inordertohaveapropersuppliers’categorization.
To December 2015, having the diagnosis of 60 companies and their respective improvement action plan, expert advice began, seeking to improve their key management indexes; among them: reducing costs, increasing sales and profits, management brand, labor legislation, legal, tax, and corporate issues; medium-term support obtaining new customers in the medium-term.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
1 Supplier and/or contractor and/or subcontractors: company that provides a service or good to Gold Fields La Cima.
2 Supplier and/or contractor and/or subcontractors: companies that belong to the Area of Direct Influence (ADI), which include Coymolache Alto y Bajo, El Tingo, Hualgayoc and Pilancones, as well as Area of Indirect Influence (AII) including Bambamarca, Cajamarca and Salaverry. Trujillo is also included.
Total number of suppliers, contractors and sub-contractors1
201420151,007 1,028
Number of local suppliers and contractors2
20142015177 199
Percentage of local suppliers and contractors [G4-EC9]
2014201518% 19%
Amount of Direct Area of Influence purchases
20142015US$19.8 US$24.5
million million
Amount of purchase in other areas of influence (Area of Indirect
Influence and Trujillo)
20142015US$15.9 US$17.5
million million
2015Management
Indicators
Program of continuous improvementIn 2015, the internal evaluation process of main contractors continued, apprising the total contractors who provide services having permanent staff presence in our facilities.Itisworthhighlightingthatbylocalhiring100%suppliesforthediningrooms’cateringwasprovidedbylocalcommunities,communaltrucksuseemployees’transportationasignificantproportionoftheservice;andmilllinerschangeismostlydonebyalocalcompany.
Environmental management by Contractors and Suppliers Withtheaimofbeingalignedwithsafety,occupationalhealthandprotectionoftheenvironmentbestpractices,andincompliancewiththerequirementsofGoldFieldsLaCima’sManagementIntegratedSystemofSafety,OccupationalHealthandEnvironment(SSYMA),specificproceduresareappliedtoselectsuppliersandcontractorscomplyingwiththestandardssetbefore,duringandafteractivities.
TheapprovalsystemhasallowedincorporatingsuppliersandbusinesscontractorsasstrategicpartnersforcomplianceandcontinuousimprovementofSSYMA6.Forthisreason,wealsomonitorcompliancewithapplicablelegalrequirements.
Next stepsWewillcontinuewiththesuppliersstrengtheningprogram‘Successfulentrepreneurs’,whichhasasprojectedresultsincreasedsales,bettersatisfactionratesandhigherrecruitmentlevelsofthebeneficiaries.Inaddition,isexpectedtoexpandtheevaluationprogramofcontractors,covering100%oftheoperation.
Inaddition,initiativestoevaluatesuppliersandcontractorsdeemedimportantforthestrengtheningofthecommercialrelationshipwillcontinuetobedeveloped,e.g.:financialcapacity,price,timelimitcompliance,offeredqualitylevel,monitoringmechanisms,useoflocalemployment,healthcare,safetyandprotectionoftheenvironment,amongothers.
6 Those contractors who have current ISO 14001: 2004 and OHSAS 18001: 2007 certification for the business line of the service offered to Gold Fields La Cima SA Cerro Corona are exempt of the homologation process.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
During 2015, the implementation of programs
to prevent, mitigate and control the environmental impacts that could cause the
execution of Cerro Corona operations continued. These programs allow complying with applicable
environmental legislation and with the commitments to environmental management instruments duly approved
by the competent authority.
AnimportantachievementhasbeentheinclusionofGoldFieldsLaCimaintheGoodEnvironmentalPracticesRegisteroftheAgencyforEnvironmental
AssessmentandEnforcement(OEFA),asaresultofthegoodoutcomesobtainedin2014
and2015supervisions,notbeingfoundanyinfringements.
8.3Environmental Management
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Company’scomprehensivestrategyforenvironmentprotectionisbasedonthecontinuousimprovementoftheenvironmentalmanagementsystem,incorporatingspecificpoliciesandproceduresinordertominimizeandadequatelymanagethepotentialenvironmentalimpactsofouractivities.Thisstrategyseekstogobeyondlegalobligationsandidentifyaspriorities,inalignmenttotheCorporation,thefollowingaspects:
Water:
EnsuregoodwaterresourcesmanagementinthedevelopmentofCerroCorona.Ensurewateravailabilityforoperationsaswellasforthecommunitiesintheareaofinfluence.
Energy and carbon:
Optimizeenergyconsumptionandreducethegenerationofgreenhousegasemissions.
Mine closure:
Developbestpracticesofmineclosure.
Communication and trust:
ToensurethattheenvironmentaloutcomesarecommunicatedandbuildconfidenceandrelationsamongGoldFieldsLaCimastakeholders.Participatorymonitoringprocessesofwaterledbythenationalwaterauthorityareagoodexampleofinformationdeliverytocommunities.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
2015 Environment Plan Goals of Cerro Corona
►Improve operational controls for water management.
►Improving the management of energy at Cerro Corona.
►Improve operational controls for soil protection.
►Improve operational controls for mitigation of particulate material and noise.
Efficient water managementForitsoperationsandhumanconsumptioninitscamp,GoldFieldsLaCimacontinuesusingwaterfromLasAguilasandLasGordascreeksandfromCerroCorona’spit,aswellasundergroundwater,mainlyfromCerroCorona’spitdewatering.
In2015,GoldFieldsLaCimacapturedapproximately3,166Mlofsurfacewater(runoffwater)and1,511Mlofundergroundwater(pumpingwellsmainlyfromthepit).Itisimportanttoindicatethatthecompanysincethestartofoperationsisrecirculatingwaterfromthetailingsdamtobeusedintheconcentratorplant.In2015,ithascirculatedapproximately21,636Mlofwater.
During2015,wehighlightthefollowingactivities:
• Withtheaimofcontinuingwiththesupporttocoverthedrinkingwaterdeficitbythepopulation’sgrowthofHualgayoc,GoldFieldsLaCimahasbegundeliveringaliterpersecond(l/s)ofwaterforhumanintake,fromthewellthatsuppliestheCerroCorona’scamp.
• The water treatment plan operation of the tailings dam by neutralization using CO2 continued, being one of the first companies in the mining sector to apply this technique. CO2 use as neutralizing agent has as advantage to stop using other acids, since the transport and handling of the latter represents greater risks to the environment and people’s health. Furthermore, the use of sulfuric acid as a neutralizing agent leads to increase concentration of sulfate in treated water, which is not desirable as we seek to comply with Environmental Quality Standards (ECA in Spanish) for the Tingo river water. On the other hand, we continued the process of water reuse in the tailings deposit for use in the metallurgical process operations.
• Likewise,withacapacityofupto5l/s,thecompanyhascontinuedwithwatercompensationtocommunitiesinCoymolacheandcompensationtoTingoRiverwithacapacityof10l/sindryseason.ThecompensationtoTingoRiverismadewithwaterfromthetreatmentplantbyCO2neutralization.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
• The water treatment system on Coymolache’s compensation plant was optimized incorporating a reverse osmosis and ultrafiltration system, which guarantees the continuity of good quality water supply to compensate communities and other consumptions.
• Withintheframeworkofnewwaterqualitystandardscompliance,andwiththeobjectiveofdefiningthebesttechnologytobeapplied,wehavecontinuedpilotingnewtechnologiesforwatertreatmentofthetailingsdeposit.Theevaluatedtechnologiesaremechanicalvaporcondensationandtheuseofmineralettringite,technologiesrelatedtotheinternationalminingandindustrialsector.
• Withinthewaterefficientuse,wehavecontinuedwithrainfallwaterstorageforCerroCorona7operationsandreuseofwaterstoredintailingsdeposit.Forthispurpose,wehaveapermanentqualityandquantitycontrolofstoredwater.
WatersfromsanitaryfacilitiesanddiningroomslocatedatCerroCoronacontinuedbeingtreatedinthreecompactactivatedsludgetreatmentplants.WatertreatedatthethreeplantsisdischargedinfulltoCerroCorona’stailingsdeposit.This,duetothatsince2015,thetreatmentplanteffluentofthemineofficesstoppeddischargingtotheenvironment,beingderivedtothetailingsdam.SludgegeneratedinthesetreatmentplantsisusedassoilimproversintheactivitiesofCerroCorona’sre-vegetation.
• Aseveryyear,campaignshavebeenorganizedtoencouragebestpracticesinprotectionoftheenvironmentandpromotionofdrinkingwaterproperuse,wastemanagement,amongotherissues.Thesecampaignsarecarriedoutwithemployees,contractorsandmembersofthecommunity.
• Atthelevelofprimaryandsecondarycommunityschoolsofadjacentareas,wehaveimplementedcampaignsontheimportanceoftheefficientwateruseandpropermanagementofsolidwaste.ThesecampaignsincludedtalksandguidedvisitstotheGoldFieldsLaCimaoperations.
7 This water serves to meet the water needs of own operations both in the dry and rainy seasons.
Energy saving programSincethebeginningofitsoperations,GoldFieldsLaCimahasbeenconcernedandcommittedtoachieveenergyconsumptionefficiencyandreduction;bothbytheproductionprocessitself,andstaffawarenessinthisrespect.
In2010,anenergyefficiencystudywaspreparedwiththesupportofspecializedconsultantsthatalloweddefininglinesofworkforelectricalenergyconsumption;oneofthemainconclusionsofthestudywasthatCerroCorona’soperationusedtheelectricpowerefficiently;mainlyduetotheuseofefficiencymotors.
In2015,SAGMillslinerschangeprojectculminated,withthepurposeofreducingtotalmillweight(steellinerswerechangedbypolymericliners),andmakethegrindingprocessmoreefficient.Thishasallowedustoreduceourspecificconsumption(kwhr/Tonground)from22.41to21.64,today.
RegardingtodieselandLPGconsumption,in2015itwashigherthanin2014,thisismainlyduetothefollowingreasons:oreremoveandhaulingtruckstravelagreaterdistanceandsteeperslopesduetothegreaterdepthofCerroCorona’spit;transportofmaterialfromCuadraturaquarry,whichislocatedapproximately2kmfromCerroCorona;itshouldbepointedoutthatin2014materialwasquarriedfromtheRiolitaquarrylocatedinsideCerroCorona;greatermovementoforganicsoil;amongotherreasons,diesel.InthecaseofLPG,themainreasonisduetothenumberofcontractors’staffincreaseinthecamp.
Inrespecttodieselconsumption,weareendinginstallationofanexpertsystemforcontrolofthefuelsupply;thiswillallowustomonitortheconsumptionofeachvehicleand/orequipmentinoperationanddetermineimprovementopportunitiesintheuseoffuels.
FinallyitisimportanttohighlightthatthecompanyhasspecificproceduresforenergymanagementandournextstepistoapplytoISO50001standards.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
pumping,amongothers.• Thecompanyhasamonitoring
programofsurface,undergroundandeffluentswateratCerroCoronaanditsareaofinfluence.Themonitoringprogramresultsarepresentedbytheauthoritiesandcommunitiesofthedirectareaofinfluence.
• Italsohasahydrauliccontainmentsysteminthetailingsdam,whichusesthebestpracticesoftheindustry.Itconsidersinjectionofultra-thincementatthedam’sbaseinordertocreateabarrierinthesubsoil,witha14mwideclaynucleus,compactedeach25cm,ultra-thincementinjectiondownstreamofthedamtocapturelowvolumeleaksthatcouldpassthecontainmentsystem,filtrationuptakeoflowvolumeonbacksidecoveredwithmaterialsoflowpermeabilityandreturnofwatercapturedbypumpingthetailingsdam.
• Uptakeandbulge,tothetailingsdam,ofsurfaceandundergroundwaterfromdewateringofthepitandoxidesdepositN°1iscarriedout,inordertohaveasingletreatmentsystemandminimizewatermanagementrisks.
Monitoring and environmental
control programs
• Therearesystemsofsedimentationandautomaticdosingflocculationaccordingtothewaterflowinrunoffwatersofcontactwithaccessroadsintheminezone.
• During2015,wehavecontinuedtreatingsewagewaterofCerroCorona’scampbythreeactivatedsludgewatertreatmentplants.
• Likewise,controlsystemsforthereductionofsedimentsdraghavecontinuedtobeusedsuchus:dam’scontainmentinchannelsofwaterpiping,strawbalesandprotectivenettingforerosionreduction,re-vegetationofunusedareas,amongothers.
► Monitoring and Control of Air Quality
Incompliancetocurrentlegislation,thisprogramaimstoreducethegenerationofparticulatematerialandgasemission(CO,CO2,NOX,H2S,SOX),takingcontrolmeasuresinorderofnotaffectingtheairquality,accordingtoregulatorycommitments.
Themeasurestaken,includevehiclesspeedcontrol,wateringofroads(especiallyinthedryseason),control
Hereisthegeneralscopeofthemainmonitoringandenvironmentalcontrolprograms:► Monitoring and Control of Water
QualityThisprogramaimstominimizepotentialimpactsonwaterqualityinCerroCorona’sareaofinfluence;oneofitspillarsiscompliancewiththemaximumpermissiblelimitsforPeru’sminingeffluents.
Themeasurestakenaspartofthisprograminclude:
• ImplementationoftreatmentsystemsforallCerroCorona’sdischarges,asforexample,watertreatmentplantofexcesswaterfromthetailingsdambycarbondioxideinjectionandmultimediafiltration,aswellastheimplementationofsedimentationtanksandflocculantsdosingforthetreatmentofcontactrunoffwater.
• Watercollectionandpumpingfromthepittothetailingsdamandtheimplementationofcontainmentofpotentialleakagefromthetailingsdepositsuchaslowpermeabilitybarriers,poolsofcollectionand
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
thesespeciestootherpreviouslydefinedzonesatthemomentconstructionactivitiestakeplaceandthatcouldaffectthem.Thistransferalsoincludesminorwildlifesuchasamphibiansandreptilesoflittlemobility.Itisimportanttopointoutthattheidentifiedfloraspeciesarenotinanycategoryofspeciesthreatenedaccordingtonationallegislation.ThetransferofthePuyaFastuosaisdonebycollectingseedsandgerminationandpropagationtesting,whichhavealreadygivengoodresultsintheareaofoperationsexpansion.As every year, biotic monitoring has been done, one during the wet season and one during the dry seasons on the amount and type of species, with the purpose of taking the necessary actions when any deviation is detected and that may alter the diversity of biological species in the area. Monitoring has been performed by a specialized company in Cerro Corona’s area of influence; the results are reported to the Ministry of Energy and Mines (MINEM). [G4-MM2].2015monitoringhasnotidentifiedasignificantmigrationofspeciesandneitherhaspromotedasignificantnegativeimpactonthearea.
ofdustemissionsintheportableplant’sclassificationofaggregates–throughadustsuppressorssystem–theplantingofalivehedgeinsomeareasoftheunitperimeter,lightandheavyvehiclepreventivemaintenanceprogramsaswellascoveringoftrucksinconcentratestransportation,amongothers.
Wehaveaprogramofenvironmentalmonitoring,whoseresultsarepresentedtotheauthoritiesandcommunitiesintheareaofdirectinfluence.
► Noise and vibration control and monitoringThisprogramseekstoreduceoravoidthepossibilityofnoiseorvibrationimpact.Forthispurpose,wecontroltheequipmentandheavymachinerymechanicalconditions.Furthermore,nightschedulesforblastingarerestricted,andtheyaredonetakingintoaccounttechnicalcriteria;priortotheblasting,peopleandanimalsareevacuatedandinformedinarangeof500metersradiusfromtheblastingpoint,amongothers.Similarly,trafficandloading,disposalanddischargeofmaterialsarecontrolled.Moreover,thereisapreventivemonitoring(technicalreview)ofvehiclestoavoidnotonlyemissionsbutnoiseandvibration.Ifavehicledoesnotcomplywiththestandardiswithdrawnfromtheoperation.In2015,thecompanyinitiatedtheevaluationprocesstofindamechanismofthecrushingplantnoisereduction(crusherofaggregates),covering,forexample,withinsulatingmaterial,havingalreadyplacedpanelsthatareontrial.Wehaveaprogramofenvironmentalmonitoring,whoseresultsarepresentedtotheauthoritiesandcommunitiesintheareaofdirectinfluence.
► Erosion and Sediment ControlThisprogramiscarriedoutinordertoavoiderosionprocesseswhichdamagecivilworksandaffectthestabilityofslopes,andinaddition
supportthelifepreservationofminestructures.
Asmeasures,thecompanyhasinfrastructureforrunoffanddrainagesystemsmanagement(canalsandwaterdiversion),constructionofpermeablefabricsbarriers,stabilizationofslopes,containmentwallsandslopesmoothing,aswellastheuseofsedimentation.
Aseveryyear,themeasurestakenhavepreventedthealterationofwaterqualitytothesedimentsinwaterbodieslocatedinHualgayocandElTingoriverssub-basins,especiallyduringtherainyseason.
► Top Soil Protection (organic soil)Itconsistsintheremovaloforganicsoilfromthelandsurfacebeforeperforminganyconstructionwork.Theremovedmaterialisstoredthenintanksdesignedandbuiltforthispurpose,andwhichcanbeusedintheclosurephase.Additionally,whenthereservoirreachesitsmaximumstoragecapacity,avegetalcoverisplacedtoprotectfromrainandwinderosion.TheprogramisappliedinallareasofCerroCoronaminingunitandallactivityinvolvingearthmovingandorganicsoilhandlinghavetocomplywithit,suchas:mineoperations,tailingsdamconstruction,amongothers.Duringtheoperationstage,TopSoilisusedaswellinre-vegetationactivitiesinareasinwhichCerroCoronadoesnotexpecttouseforextendedperiods.ItisimportanttohighlightthatTopSoilmanagementhasbeenoptimized,havingmovedthestoredmaterialofDepositNo.9toDepositNo.2;this,tocentralizethestorage,optimizeavailablespaceuse,lowertransportationcosts,minimizetravelandeasematerialcontrol.
► Monitoring and management of biodiversity [G4-EN11]InEIA’sfourthamendment,twozoneswithsensitivespecieswereidentified(PuyaFastuosaandNicotianaThyrsiflora)intheTingoriverbasin,sothecompanycommittedtomove
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
AtGoldFieldsLaCimaweapplythebestpracticesforsolidwastemanagementandcompliancewithrelatedstandardsaremet.Amongtheactivitiesthatstandoutare:
• Recollection,transportation,treatmentandfinaldisposalthroughauthorizedEPD-RScompanies,whereappropriate;forexample,solidindustrialhazardouswasteofconstructionandoperationstages-whichcannotberecycled.
• Industrialwastethatcanbereusedorrecycled,suchasscrapmetal,WoodorplasticismanagedbySolidWasteTradingCompanies(EC-RS).
• Organicresidueisusedforcompost,whichisusedinCerroCoronare-vegetationactivities.
• MudfromTreatmentPlans(PLTs)isdriedandstabilizedindryingbottoms,soitcanbeusedtoimprovethesoil.
• In2015,industrial,non-hazardousandhouseholdsolidwastewarehousewasrelocatedinanareathatwillallowabetterhandling.
Solid WasteManagement
Geochemical and hydrogeological tests
Geochemicaltestsallowapermanentresearchfromthebeginningoftheconstructionphase,tooptimizetheacidrockdrainagepreventionand,intheclosurephase,tohavethebestchoiceofchemicalstabilityforallCerroCoronaminingunit’scomponents.Ontheotherhand,hydrogeologicalstudiesallowustohaveinformationtoimplementforecastmeasuresingroundwatermanagement.
Itisimportanttohighlightthatgeochemicaltestresultsareusedforthegeochemicalmodeling,directlysupportingtheprocessofdecision-makingtofacetheseveralconditions,forexample,forenvironmentalmanagementprogramstofollowduringtheclosurephase.
Program of Awareness and Preparedness for Emergencies at Local Level (APELL)Theprogramwaslaunchedin2010,undertheguidelinesestablishedbytheUnitedNationsaboutsafetyinhazardousmaterialstransportation(APELL).
Itisbeingdevolvedinsomelocationsoftheconcentratetransportationroute,betweenCerroCoronaandSalaverryPort.Theselocationswereselectedtakingintoaccounttherisklevelatwhichtheywouldbeexposedandtheirwillingnesstoparticipate.
Theprogramaimstodevelopcapabilitiesinresponsetoemergenciescausedbytransportationofhazardousmaterialsontheroute;inaddition,includingsituationsofnaturalortechnologicaldisasters.
In2015,wecontinuedwithmaintenanceandskillsstrengtheningactivitiesintheareasofCobroNegro,QuebradaHonda,Chotén,LaMónicaandtheareaofSanJuan.
Locationstrained
5
AprogramsummaryPersonnel
972
Percentageoffulfillment97.3 %
Attendants1,325
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Environmental Management of Salaverry Port WarehouseForGoldFieldsLaCima,itisessentialtoprotecttheenvironmentalandtocreateapositivesocialimpactduringconcentratetransportationfromCerroCoronatoSalaverryportforstorageandshipment.Therefore,SalaverryhasanintermediatewarehouseinwhichtheconcentrateproducedatCerroCorona(gold-containingcopperconcentrate)isgatheredforlatershipment.ForthedevelopmentofactivitiesatSalaverrythereisanEnvironmentalImpactAssessmentModification(MEIA)forstorage,transportandshipmentofmineralattheSalaverryport,dulyapprovedbytheMinistryofEnergyandMines.
DuringtheelaborationoftheMEIA,baselineenvironmentalandsocialstudieshavebeencarriedout,suchas:soilquality,air,noise,waterresources,biodiversityandsocial,inordertoidentifytheconditionsbeforethestartoftheintermediatewarehouseoperation.
TheMEIAhasidentifiedandevaluatedtheactivitiesthatcouldhaveapotentialenvironmentalimpact,resultinginaminimalnegativerelevance.Inthisregard,GoldFieldsLaCimahasimplementedenvironmentalmanagementmeasurestoprevent,mitigateandcontrolthepotentialimpactstotheenvironment.Mostrelevantaredetailedbelow:
• Theconcentrateisstoredwithinthreeclosedbuildings.
• Intermediatewarehouseperimeterhasmeshwindbreak.
• Thehandlingyardofthewarehouseconsistsofaconcreteslabandanareawithasphalt.
• Duringthetransportationofconcentratetruckshoppersusedblanketsorcoversinordertopreventconcentrateoutflow.
• Theequipmentusedforconcreteshipment(shiploader)iscomprisedbymodernequipmentdesignedforthispurpose,toavoidtheoutfloworlossofconcentrateduringtheshipments.Theshiploaderhasadustcollectorandarubbercurtain,whereuponthedispersionofparticulatemattertotheatmosphereiscontrolled.
• Therearesweeperstocleanintermediatewarehouseandportfacilitiesatthetimeofshipment.
• Truckwashisdoneattheexitoftheintermediatewarehouse.
• Allvehicleshaveaprogramofpreventiveandcorrectivemaintenance,ifnecessary.
• Wehaveamanagementprocedureofsolidwaste.WasteismanagedthroughEPS-RSandEC-RS,dulyauthorized.
• Moisturecontrolofconcentrateiscarriedout.
• Wehaveacontingencyplantodealwithpossibleunwantedevents.
• TheenvironmentalmonitoringprogramisimplementedaccordingtotheMEIA’sapproval;itincludes:airqualitynoiseandvibrationmonitoring;seawaterquality,marinesediments;soil,benthosandfishquality.
• Trainingtostaffisprovided.
Ontheotherhand,withthegoalofachievinganintegratedstrategyofsocialmanagementinSalaverryport’sareaofinfluence,thecompanyisimplementingaCommunityRelationsProgramthatmadepossibletotrainstudentsinthemesofeducationandroadsafety,amongothers.
Mine Closure PlanGoldFieldsLaCimahasaMineClosurePlan(PCM)andfourPCMupdatesdulyapprovedbytheMinistryofEnergyandMines.PCMaimstoensure,tothepossibleextent,thatallCerroCorona’sareasandcomponentsarerehabilitatedsoastoprovideappropriatepublicsafetyandallowlanduseinawaysimilartominingoperations.
Thecompanyconsidersimperativetheapproachof“designthinkingaboutclosure”inordertoreduceclosureactivities,selectthebestclosurealternatives,ensureatalltimesthatclosurecomponentsarephysicallyandchemicallystableintheirinteractionwiththeenvironment,minimizesocio-economicimpacts,amongotherclosurecriteria.Correspondingly,incompliancewiththeenvironmentalapplicablelegislationandtheapprovedMineClosurePlan,thecompanyiscomplyingwiththeimplementationofprogressiveclosureactivitiessetoutintheschedule.
Also,annually,thecompanyconstitutesfinancialguaranteesthroughguaranteeletterstothenameoftheMinistryofEnergyandMinesasbeneficiary,withthepurposeofcoveringCerroCorona’sfinalclosurecost.Additionally,thebestclosurealternativesareexploredandevaluated,withthepurposeofoptimizingclosurecriteria,reduceactivitiesandpostclosurecosts,prioritizesystemsofliabilitiestreatment,etc.;proofofthisarethegeochemicaltestscarriedoutatCerroCorona,researchonwatertreatmentsystems,postclosurehydrogeologicalmodeling,amongothers.
Management of Environmental LiabilitiesIn2006,GoldFieldsLaCima,asnewholderoftheminingrightstransferredbySociedadMineraCoronaS.A.,undertooktheremediationofsevenenvironmentalliabilitieslocatedintheareaofCerroCorona.Assumedliabilitiesare:PastmeltingconcentratorplantBellaUnión,LaJalcatailing,tailings1and2,BellaUnióncamp,officesandwarehouses,fueltanksanditsfacilities,andpowerhouse.Therefore,thecompanyhasincludedtheseliabilitiesinitsMineClosurePlan,approvedbyMINEM.Sincethestartofoperations,itimplementedmeasureswiththepurposeofavoidingnegativeimpacttotheenvironment.Themainimplementedactivitiesincludethethreeassumedtailings;theywerecoveredbyCerroCorona’stailingsdam,andcurrentlythecompanyiscarryingoutthedismantlingandcleaningofotherfacilities,ratherthanbeforethewholeareaiscoveredbyCerroCorona’stailingsdam.
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2015 Environmental Management Indicators
GRICode PerformanceIndicators 2014 2015
Area:Materials
G4-EN1 Materialsbyweight:(inmetrict-tons) 1 25,243 24,555
Area:Energy
G4-EN3 Internalenergyconsumption:bytypeofsourceandvolume
Diesel(inklt) 9,939 13,455Gasoline(inklt) 0.73 0.80Liquefiedpetroleumgas(inkg) 70,999 102,227Diesel(inTJ) 357 484Gasoline(inTJ) 0.02 0.03Liquefiedpetroleumgas(inTJ 3 5
G4-EN4 Externalenergyconsumption:electricityconsumptionofoperationsandadministrativeoffices-NonrenewablesourceInMWh 143,441 145,361
InTerajoules 516 523
Area:Water
G4-EN8 Surfacewatercatchment(inMl) 2,289 3,166
Groundwatercatchment(inMl) 1,272 1,511
Totalwateruptake(Ml) 3,561 4,677
G4-EN10 Volumeofrecirculatedwater(inMl) 20,527 21,638
Area:Biodiversity
G4-EN11 Operationalfacilities,whichareadjacent,contained,orlocatedinprotectedandnon-protectedareasbygreatdiversityvalue Pág87
Area:Emissions
G4-EN15 Directgreenhousegasemissionsbyweight(inCO2metrict-tons)(scope1) 2 27,540 37,091
G4-EN16 Indirectgreenhousegasesemissionsbyweight(inCO2metrict-tons)(scope2) 3 33,048 41,573
Area:Effluentsandwaste
G4-EN22 Waterdischargebyqualityanddestination-totalpouredamount(Ml) 4 1,825 2,632
G4-EN23 Totalweightofwastebytypeandweight(int)andmethodoftreatment
Tailingstodam 6,633,753 6,564,763
Waste 5,451,632 5,220,430
Recycledmetals 731 991
Recycledplastic 63 59
Recycledpaperandcardboard 16 28
Disposalinlandfill 830 1,104
G4-EN24 Numberandvolumeofsignificantspills(inliters) 5 1 0
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
GRICode PerformanceIndicators 2014 2015
Aspect:Compliance
G4-EN29Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornoncompliancewithenvironmentallawsandregulations
6 ----
Area:General
G4-EN31 Breakdownofcostsandenvironmentalinvestment(inUS$) 7 17,688,746 21,656,977
1 It includes explosives, caustic soda and lime.2 It includes the consumption of diesel, LPG and gasoline. The calculation is done through the use of total consumption to which an emission factor is
applied.3 It includes the consumption of electricity. The calculation is done through the use of total consumption to which an emission factor is applied. Should
be noted that the factor in 2014 was 0.230398 TN CO2/MWH and in 2015 was 0.286 TN CO2/MWH, reason for which an increase in CO2 emissions is observed in 2015 to 2014, which is not necessarily due to the increase in the consumption of electrical energy but due to the factor applied.
4 Effluents type considered are water from surface and excess runoff water stored in tailings deposit.5 Gold Fields La Cima define 5 categories of spill, with 1 being the lowest category and 5 the highest. In 2014, there was an incident level 2, since
there was a crack in the faucet tubing for oil, within the tailings operation, we had a spill of 480 gl. This situation was informed to the corresponding authorities.
6 During 2015, four disciplinary procedures were filed; one corresponding to the Office for Control, Enactment and Implementation of Incentives, of OEFA, due to alleged non-compliance with environmental legislation; the two last were filed by the Office of Electric Control of Osinergmin due to alleged non-compliance with electrical regulations. Fines in discussion amounted a total of 3,000 UIT, approximately. It is important to mention that there was no environmental damage or liability in electrical or mining safety in the aforementioned procedures.
7 It includes activities of pollution prevention, environmental impact studies, audits activities of monitoring, construction of tailings dam. Measures of hydraulic containment, geophysical and hydrogeological studies.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Sectorial GRI Indicators for Mining
GRI Description 2014 2015
MM4 Numberofstrikesandlockoutsthatexceedaweek. Notregistered Notregistered
MM5Operationsinoradjacenttotheterritoriesofindigenouspeople*andnumberandpercentageofoperationswithagreementswithindigenouscommunities.
Doesnotapply Doesnotapply
MM6Numberanddescriptionofsignificantdisputesrelatedtolandandrightsuseofindigenousandlocalcommunitiesandcomplaintmechanismstoresolveconflicts.
Notregistered Notregistered
MM7Indicatehowthecomplaintmechanismswereusedtoresolveconflictsrelatedtoland-useandthecustomrightsofindigenousandlocalcommunitiesaswellastheirresults.
Wehaveamonitoringandmanagementofcomplaintsprocedure,whichisappliedaspartofourintegratedmanagementsystemforallemployeesandcommunitiesintheareaof
indirectinfluence.
MM9 Locationswhereinhabitantsresettlementhasbeenconducted Doesnotapply Doesnotapply
MM10 Numberandpercentageofoperationswithclosureplans TheEIAcontainstheclosureplanapprovedbythecompetentauthorityforCerroCorona
* The International Finance Corporation defines as indigenous communities those social groups with different identities of the dominant groups. They are often found in marginalized and vulnerable population segments. The economic, social and legal status of these people often limits their ability to participate of progress and enjoy the benefits. In the areas of direct and indirect influence of La Cima there are no indigenous communities.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Environmental Licenses and PermitsInrelationtoenvironmentalinstruments,during2015theseventhmodificationofCerroCorona’sEIAandthree(03)SupportingTechnicalReports(ITS)weresubmittedtothepertinentauthority;theyincludednewcomponents,modificationsandextensionsthatallowGFLCtocontinuewiththeoperations.Inadditiontothis,withintheprocessesofenvironmentaladjustmenttothenewqualitystandards,thereportofIdentificationPhasetoadapttosoilenvironmentalqualitystandardswassubmitted.
Withinthesubjectofoperatingpermitsforconstructionandoperation,GFLCsubmittedtothecompetentauthorityfifteen(15)applicationsforauthorization,whichwereapprovedandallowcontinuingwiththeconstructionandoperationprocessofthenewcomponentsrequiredfortheoperation.
InannexNo.2,pleasefindlistedGoldFieldslicensesandpermits.
Internal AuditsEveryyear,theenvironmentalmanagementofthecompanygoesthroughaninternalauditprocesscarriedoutbypersonnelofourheadquarters,andthroughanotherprocesswhichisrequestedbyus,aswell.Itshouldbenotedthattheseinternalauditshavethepurposeofidentifyingimprovementopportunitiesforthecontrolandenvironmentalmonitoringprogram.In2015,thecompanyhasbeensuccessfullypassedtherecertificationprocessofISO14001standard,validforthreeyears.
Next StepsWewillcontinueworkingontheevaluationoftechnologiesforthefulfillmentofEnvironmentalQualityStandards(ECAinSpanish)inrelationtowaterandsoilqualitystandardsandmoreefficientalternatives.Todothis,wehavedrawnupanadaptationplan.
Ontheotherhand,thecompanywillcontinuetocarryoutcampaignswithitsemployeestointernalizeanenvironmentalculturetodiminishresourcesuse,amongotheractions.Thisinitiativeisaimedtoidentifynewmeasurestoreduceenergyconsumption.
Inalignmentwithourheadquarters,wewillcontinueimplementingthenewmineclosureprocedures,intermsofdefiningpit’swatertreatmentduringclosureandpost-closurephases.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Social Responsibility Management
Approach
Shared Value Strategy:
Improve company’s competitiveness and, at the same time, improve
economic and social conditions of the communities in which Gold Fields La
Cima operates.
8.4Social
Management
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SinceCerroCorona’sexplorationstage,GoldFieldsLaCimaS.A.haspursueda“win-win”strategy.Thismeanstoimplementactionsthatbenefitallstakeholdersinterestedorinvolvedintheminingoperation,inordertosetgoalsandstrategiclinesofworkwiththecommunities,authoritiesandinstitutionsinCerroCorona’sareasofdirectandindirectinfluence.
From2014,GoldFieldsLaCimaassumesthesharedvaluestrategyandalignsitsplanstopursuethisgoal.Toachievethis,welookto:
► Identifyactionareaswithgreatersocialchallengesforthecommunitiesandforthecompany.
► Formulateprojectstotakeadvantageoftheidentifiedopportunities.
► Dialoguewithauthoritiesandlocalleaderstoaddressjointlytheseprojects,providingappropriatetechnicalandoperationalsupportand,aboveall,topromotepublicandprivatecooperation.
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Thegoalistopreservethecommunitiessupportandthesocialandpoliticalharmonyintheoperation’ssurroundings.Therefore,westrivetohaveamanagementthatallowsGoldFieldsrecognitionasaclose,proactive,miningcompanythatgeneratestrustand,aboveall,whichhasanactiveroleinthesustainabledevelopmentofitsinfluencearea.
ThisapproachhasallowedthearticulationoftheAreasofProjects,Processes,Mining,Administration&Finance,HumanResources,SafetyandEnvironmentinordertoachieveagreaterimpactintheshort,mediumandlongterm.
Tothisend,during2015wecontinuedworkingonsixareas:
1. Improve efficient use of natural resources: Worklinefocusedonaplanfor2014-2017period;wearelookingforimprovementsinwaterandsanitationsystemsinthecityofHualgayocandcommunitiesaroundtheoperation.During2015,havebeenimplemented85smallfamilysystemsofdrinkingwaterinthevillageofCuadratura(poolswithatarnandadrainingboardeach),fourrectangularreservoirsandtheinstallationof35waterhillsideoutlets.Inaddition,thePeñaBlancareservoirwasrehabilitatedinthecityofHualgayocandthedrinkingwaterprojectforCoymolacheAltobegan.
2. Development of competitive local suppliers: Itseekstoimprovebusinesscompetitivenessoflocalsuppliers,developingmanagementcapabilitiesforitssustainabilitybeyondtheminingindustrythroughcustomerbasediversificationandnewbusinesslinesidentificationinothermarkets.ThisprogramisdevelopedbytheSwissFoundationforTechnicalDevelopmentCooperation
(Swisscontact),whichestablishedthediagnosisof60localcompanies(fromsuppliersofheavymachinery,personneltransportationtofoodsuppliers),during2015,inordertodevelopanindividualimprovementplan.Theactionplansimplementationof45businessmenbegan,whohaveco-financedinterventionsrequiredbytheseplans.Improvementofbusinessplanshavedurationofsixmonthstooneyear.
InNovember2015,therecognitionceremonytoemployerswiththebestresultstookplace,andthelocalsuppliermanagementsystemwasdesigned.
3. Technical training for young people: Thishasbeenachievedwiththegrantingofscholarshipsfortechnicalorcollegecareers,andtrainingforoccupationswithhighemploymentdemandintheareaofinfluencetothebeststudentslasthighschoolyear(classfirstandsecondplaces),inCerroCorona’sareaofinfluenceoperation.
During 2015, eight scholarships have been awarded for Universidad Privada Antonio Guillermo Urrelo of Cajamarca, to pursue a college career in the chosen major. 50% of the scholarship is awarded by the university and the other 50% is assumed by Gold Fields La Cima; every family has to pay for other student expenses. From 2010 to date, 46 students have been awarded with these scholarships.
FortheyouthofCuadratura,tenscholarshipsforSENATIhavebeengranted,whichincludetechnicaltrainees.Thecommunityselectsthebeneficiariesdirectly.
Ontheotherhand,tothecommunityofElTingograntedfivescholarshipsforagriculturaltechnicalstudiesinCEFOP(FeyAlegria)withlengthofthreeyearseach.
Moreover,12youngpeoplehavebeentrainedtooperatedumptrucksandhydraulicexcavatorswithSanMartinContratistasGenerales,mainGoldFieldscontractor,ofwhichthefirstsixpositionsreceivedtraininginTECSUPLima;inthesecondhalfofthisyear,16youngpeoplehavebeentrainedinTECSUPLima.
Itisexpectedthattheseeducationalsupportprogramswilldeveloplocalcapabilitiessothat,inthenearfuture,theseyoungpeoplewillcontributedirectlytothedevelopmentoftheircommunities.
4. Local economic development: Promotingcost-effectiveproductionchains(milk,cheese,quinoa,Guineapigs,etc.)andtrainingprogramsofferedtotheLocalGovernmenttoimproveresourcesmanagement.In2015,theprogramfocusedtheconstructionofGuineapigsmodules,plantingofimprovedpasturesandcalvesdonation.RegardingtothetrainingtotheLocalGovernment,during2015thecompanyhiredaspecializedconsultanttodesigngovernancetoolswhicharethenapprovedandadoptedbythemunicipalityandformallyused.Ontheotherhand,wesupportedtheelaborationoftechnicalfilescommittingtosupportthemunicipalitiesintheapprovalofprojectspresentedtotheministries.
Line Nº1:
Strategic Management
Below,wedetailofachievedprogramsduring2015[G4-21]:
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5. Early childhood development: Weimplementedaprogramtocontributetochildmalnutritionandanemiareductionamongchildrenlessthanthreeyearsold,aswellastoimprovethequalityofinitialeducationandthetwofirstgradesofprimaryschool.ThisprogramwasdevelopedwithCaritasdelPerúNGO,anditisbenefiting338childrenin19Hualgayoccommunities,withitsfirstresults.
Among them, we have identified a anemia reduction of 5% to 35% in children under five years old, between November 2014 and June 2015. In this work line, we also have the “Escuelas Exitosas” (Succesful Schools) program in union with IPAE; the program is focuses to primary and secondary schools of Hualgayoc.
6. Social infrastructure: Itseekstobuildworksthatimprovecommunitieslivingconditionsintheareasofdirect(ADI)andindirect(AII)influenceofthecompany.InDecember2014,theconstructionofthe“CentralmarketofBambamarca”andmarket“LasPapas”werecompleted,projectofmorethanS/.24millionwhichhasallowedarearetailerstoselltheirproductswithnecessarysafetyandhealthconditions.
In addition, Hualgayoc’s health center type I-4 was completed and launched; this work was implemented through the Dialogue and Consulation Table of Hualgayoc, with an investment of S/.72 million considering infrastructure and equipment. This health center has adequate facilities which allow taking care of primary health problems in the
areas of pediatrics, gynecology, and laboratory, among others. During the execution of the project, it received the support of the Regional Office of Health and Micro Health Network of the area; it benefits 17 thousand inhabitants, distributed in 22 villages and two towns.
Ontheotherhand,incoordinationwithManuelVasquezZonalAssociationofDrinkingWaterusers,wearedevelopingthereplacementprojectof12kmofadrinkingwaterpipeline,aswellasthereconstructionof27outletsandfourreservoirsthatwillbenefitmorethan18villages,providingworktoanaverageof80localpeoplepermonth.ThisprojecthasanestimatedtotalinvestmentofUS$4.3billionwithapproximately22,000beneficiaries;itwillconcludeby2016.
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Itsgoalistoconsolidatethecommunity-companyrelationshiptoensureCerroCorona’soperationdevelopmentandpromoteaparticipatorymonitoringofcommunitiesandagreaterawarenessinthevaluationofnaturalresources.Ingeneralterms,bothlinesofStrategicManagementandSocialViabilityarelookingtoconsolidatethecommunity-companyliaison,whereasdevelopingfourconcreteactions:
1. Ensureoperationalalignmentoftheprojectwiththesharedvaluecorporatestrategy.
2. HandleandmanagetheimpactsgeneratedbytheCerroCorona.
3. StrengthenthehumancapitaloftheCorporateAffairsArea.
4. Buildtrustamongthepopulationbasedonverifiableobjectivesandthroughacontinueddialogue.
Toachievethisgoal,during2015thefollowinginitiativeshavebeendeveloped:
► Multi Sectorial Committee [G4-SO1]
HualgayocresidentshavetheperceptionthattheblastscarriedoutatCerroCoronahavedamagedthestructuresoftheirhouses,whileafterseveralyears,ithasbeenconfirmedthatGoldFieldsLaCimahasnoliabilityinthosedamages.ThecasewasclosedbytheProsecutor’sOfficeforCrimePreventionofCajamarca,byOSINERGMIN,andbyINDECI.Itisnoteworthy,moreover,thatvarioustechnicalreportscarriedoutbytheabove-mentionedinstitutionsandthecompanyhavedeterminedthatthemainfactorscausingstructuraldamagetosomehousesofHualgayocarewetlandswherethesehouseswerebuilt,aswellasthelackofurbanplanningparametersandprofessionaltechnicalsupervisionduringtheconstructionofthesame.
However,GoldFieldsLaCimasoughttobepartofthisproblemsolution,andduringanassemblyheldonOctober25,2012,aconsensuswasreachedwithnationalandlocalauthoritiestoformamulti-sectorialtechnicalCommitteeinordertoaddressthehousingproblemsinHualgayoc.
ThisCommitteeifformed,amongothers,representativesofthemunicipalityofHualgayoc,MinistryofEnergyandMines,MinistryoftheEnvironment,MinistryofHousing,GeophysicalInstituteofPeru;andthecompany.Inaddition,itincludesarepresentativeoftheaffectedresidentsandanotheronerepresentingtheMinistersCouncilPresidency,whoactsasCommittee’sfacilitator.
Basedontheabove,inAugust2013,adamageassessment(census)wascarriedoutto25%ofthehousesinthecity(about200houses),andthecompanypreparedanactionplanwhichhasallowed,sofar,toidentifyandclassifyninehouseswithseriousstructuraldamage,fivewithmoderatedamageandeightwithslightdamage.
In2015,thereconstructionofthefirstfivehomeswithseriousstructuraldamagewascompleted,andin2016weexpecttorebuildtheremainingfour.Ontheotherhand,theevaluationof75%ofhouseswillstartinJanuary2016.
Line Nº2:
Social Viability
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► Concerted Development Plan
GoldFieldsLaCima,withthesupportofCEDEPASNorteNGO,hascontributedtothecreationoftheConcertedDevelopmentPlanfortheDistrictofHualgayocthroughaparticipatoryprocesswithworkshops.Thisprocessincludessixareasandthe32villagescomprisingthem.
Theworkshopshavehelpedtodefinewhichprojectsshouldbeprioritized,takingasabasisthemainneedsdemandedbythepopulationandtheuseofownresourceswhichmaybeaccessedthroughtheCentralGovernmentandthemunicipality.In2016,theapprovalanddisseminationoftheplanisexpected,whichwillserveasanewstartingpointtobetterfocusGoldFieldsLaCimasupporttotheDistrictofHualgayoc,onasharedvaluebasis.
► Dialogue and Consultation Table [G4-SO1]
ThisorganizationisaworkplatformledbyHualgayoc’sDistrictMayorsotheresidents,throughtheirrepresentatives,participateinprojectplanningtobeimplementedinorderofbenefittingthecommunity;itspremiseisthattheseprojectsmustbringtangiblebenefits.
TheDialogueandConsultationTableiscomposedofdelegatesfrom40villagesandthreetowns,arepresentativeofHualgayoccity,arepresentativeofthedistrictmunicipalityandarepresentativeofthecompany.
In2015,thecompanycontinuedworkingwiththenewmunicipalauthoritiesthroughanongoingdialoguetokeepamechanismofjointworktoprovidecontinuityandflexibilitytotheimplementationoftheseprojects.
In2015,theimplementationof11projectscontinued,andtheexecutionoffourprojectsbegan,withaninvestmentofS/.4’096,497.04million,accordingtothefollowingdetail:
Projects Status AmountinS/. ImplementingEntities
LivestockdevelopmentinTahonaBajavillage Finished 53,500 GoldFieldsLaCima/CEDEPASNGO
LivestockdevelopmentinMoranAltovillage Finished 178,375 CEDEPASNGO
LivestockdevelopmentinSacsapuquiovillage Finished 162,106 CEDEPASNGO
CattleandsheepgeneticimprovementinCoymolachevillage Finished 210,590 GoldFieldsLaCima/
CEDEPASNGOPujupeGate-PujupeGateSectorIII,capabilitiesimprovementtoincreasemilkproduction Finished 242,393 OctavioRegaladoCompany
ShedsconstructionandsmallanimalsbreedinginVistaAlegreAltovillage Finished 100,000 CalderónCompany
Paymenttoteachersintheareaofindirectinfluence Finished 900,000 Hualgayoc'sDistritalMunicipality
MultipurposefacilitybuildinginCortaderavillage Finished 415,636 PuentesparaelDesarrolloAssociation-GOYCER
LivestockdevelopmentinYerbaSantaAlta Inimplementation 304,001 ONGCEDEPAS
BuildingofwashdownlatrinesinYerbaSantaBaja Inimplementation 277,144 PuentesparaelDesarrolloAssociation-VARUI
TechnicizedbreedingofguineapigsinMuyavillage Inimplementation 386,039 PRODERNGO
TechnicizedbreedingofguineapigsinNuevoTunaspampa Finished 263,418 CEDEPASNGO
TechnicizedbreedingofguineapigsinMolinopampa Finished 379,083 CEDEPASNGO
DonationofRotoplastanksinCochadenvillage Finished 35,402 GoldFieldsLaCima
LivestockprojectinMaraycuchovillage Inimplementation 183,000 GoldFieldsLaCima
Total 4,090,687
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► Agreement with Cuadratura Village
AsaresultoftheagreementsignedinJune2014,betweenthecompanyandthehamletofCuadratura,locatedinthedistrictandprovinceofHualgayoc,thefollowingprogramshavebeencarriedout:
Education
TherewereawardedtenSENATIscholarshipstoyoungpeople,tostudymechanicalmaintenance,industrialelectricity,industrialmanagementandcomputerizedadministrativeassistance,withaninvestmentofmorethanS/.25,999.2.
Health
Inadditiontotheimplementationofthedrinkingwatersystem,trainingworkshopshavebeendoneinregardssanitaryeducation,theAdministrativeBoardofServicesandSanitation(JASS)hasbeencreated.ThewaterworksmeantaninvestmentofS/.1’327,998.15.
Annual pasture planting program
Planting180hectares(ha)ofimprovedpastures,withaninvestmentofS/.829,331.7,benefiting180families.
Genetic improvement program
Thecompanydonated91calves,providedhealthcareofaveterinarian,programsofartificiallivestockinseminationoftheBrownSwissbreed,withaninvestmentofS/.107,998.8.Ithasbenefited185families.
Guinea pig breeding
Theconstructionof77shedsofGuineapigswascompletedinDecember2015.In2016supporttootherfamilieswillcontinue.
► Cajamarca’s Regional Government Process of Ecological & Economic zoning and Land Use
EcologicalandEconomicZoning(ZEE)isaninstrumenttoguidedecisionmakingontheuseofnaturalresourcesandtheproperemploymentoftheterritory,agreeingpopulationneedsanddevelopmentopportunitiesinharmonywiththeenvironment.Itisalsoaparticipatory
andconcerted,dynamicandflexibleprocessthatseekstoidentifythepossibilitiesofsustainableusethathasacertainterritory;inotherwords,ageographicalregionthatmayhavepotentialforvariouseconomicactivities.Consequently,thosescorelevelsthatcouldpresentrestrictionsintheterritoryarenotlimitingtheexploitationofitspotential,astheyaremanagedproperlyandavoidnegativeimpactsintermsofeconomic,socialandenvironmentaldevelopment.
TheRegionalGovernmentofCajamarca,undertheframeworkoftheecologicalandeconomiczoning,iscurrentlyimplementingtheTerritorialManagementPlan(OT),whichseekstodefinepoliciesandstrategiesthatwillguidetheprocessoflanduseandsustainabledevelopmentofCajamarca’sterritory.
Furthermore,theRegionalEnvironmentalCommission(CAR)hasstrengthen,amultispectralorganinchargetocoordinateandarrangetheregionalenvironmentalpolicy.Itpromotesdialogueandagreementbetweensectors,publicandprivate,whichleadstoenvironmentalmanagementtoresolvetheproblematicenvironmentalperspectivecross-sectorialandparticipatory.Fromthisspace,theRegionalEnvironmentalAgenda2015-2018wasapproved,whichwassubmittedtotheMinistryoftheEnvironmentforvalidation.
Inthiscontext,Cajamarca’sminingsector,integratedbyGoldFieldsLaCimaandotherminingcompaniesintheregion,havetitularandalternaterepresentativesinthedifferentregionalplatformssuchasCARandZEE-OT,whichhavepromotedconcertedactionsforsustainabledevelopment,suchas:
• Deepenandopentechnicaldiscussionsonissuesofenvironmentalmanagement,productiveactivity,remediationofenvironmentalliabilitiesandminingintheregionCajamarca.
• Providetechnicalsupportinthepreparationoftheregionalenvironmentaldiagnosis,
RegionalEnvironmentalAgendaandEnvironmentalActionPlan.
• BroadcastthemainachievementsandchallengesoftheminingsectoraboutenvironmentalmanagementinCajamarca.
• PromoteaspacefordialogueandproposalbetweentheRegionalGovernmentandtheminingsectorinCajamarcaonenvironmentalmanagementissues.
In2016,weexpecttostrengthentheconcertedworkamongtheState,RegionalGovernmentofCajamarca,miningsectorintheareaandotherplatformsofregionalandnationalrepresentation,whichinvolvesaprocessoftechnicallandmanagement,andpromotionofrightandappropriateuseoftheterritoryandprivateinvestment.
► Social-environmental Team
Itfacilitatesthecommunitiesunderstandingofenvironmentalmanagementplansinfriendlyterms.ItalsosupportscommunicationbetweenauthoritiesandcommunityleadersaboutenvironmentalinformationofCerroCorona’soperations.
► Work Team and Local Business
Itpromoteslocalbusinessesandgenerationoflocallabor,whichincludesaspecificprocedurefortheoperationalmanagerstopromotelocalemployment,andestablishthenecessarymechanismstoprovidejobs,firstofall,totheresidentsofthecommunitiesinthecompany’sareasofdirectandindirectinfluence.
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Line Nº3:
Corporate positioning
ItpursuesthatGoldFieldsLaCimaisacknowledgedbythelocal,district,provincial,regionalandnationalactorsasastrategicpartnerandallyforthedevelopmentoftheCajamarcaregion.
Toachievethisgoal,during2015,thefollowinginitiativescontinuedbeingsupported:
► Radio programs in Gold Fields’ area of influence
During2015,theexternalcommunicationplanhasbeenre-launched.Itisworthhighlightingthe“Didyouknowthat?”campaign,whichhadascentralgoaltoinformaboutthebenefitsofmininglocally,regionallyandinthecountry,aswellastocontributewiththeeducationanddiffusionofgeneralculture.Inasecondphase,theslogan“Thenewfaceofmining”,includingmessageswithinformationabouttheseveralimplementedsocialprogramsandbroadcastingbeneficiaries’testimonies.Inathirdphase,tobedevelopedin2016,thecontentswillbesegmentedbytargetaudienceandbyhours.
► Plan of guided visits to operations
Therearevisitstotheoperationswiththepurposethattheseveralinterestgroupsofthecompanyunderstanditsmanagementmodel.Thevisitsareconductedbyvariousgroupssuchas:authoritiesofHualgayoc’smunicipality,morethan300universitystudents(SanMarcos,UniversityofPiura,UniversidadPrivadadelNorte,PontificalCatholicUniversityofPeru),delegationsofthecommunitiesoftheareaofinfluence,amongothers.
“Thank you for letting us know a little more about drinking water management.” It is important to identify facts, with concrete evidence, on how is the current management of water. I am grateful for all the guidance and explanations that have been given to us. It is interesting to see how, so serious and responsible, water can be managed in order to contribute to the health and nutrition of our population.” CarlosRodríguezMalaver,surgeonVistaAlegrehealthcenter,MicroHealthNetworkofHualgayoc.VisitedonAugust12,2015
“I want to thank Gold Fields because our students from third, fourth and fifth grades of high school took guided visits, allowing them and their teachers to learn about water management processes and the process applied by Gold Fields, as well. This contributed much in the approach of students to mining”.LisbethBrionesDávila,DirectorofElTingoSchool.VisitedonJuly7,2015“The visit by a group of our students helped to know and answer technical questions that students have about the operation that is being carried out so professionally. In addition, this visit served to know the equipment used and the ways in which they optimize the operation in the field.”JoséArditoVega,NationalDirectoroftheEngineeringofMinesandGeologySchooloftheUniversidadPrivadadelNorte,duringavisitonOctober21,2015.
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► Participation in events of the mining sector
PERUMIN 32 Mining Convention: Itisoneofthemostimportanteventsoftheworldminingcalendar.GoldFieldswasasilversponsor.Inaddition,ourparticipationwasthroughexhibitionsthatincludedgreatparticipationoftheaudience.
PDAC Convention: FromMarch1stto4th,2015theworld’slargestMiningExplorationCongresstookplace.ThisConferencewasheldinToronto-CanadaandisorganizedbyPDAC(“ProspectorsandDevelopersAssociationofCanada”).ReginaBaumgartner,GoldFieldsSeniorGeoscientist,madeapresentationontheimpactofCerroCorona’s(Peru)andFarSouthEast’s(Philippines)mineralogicalcharacterizationinmetallurgicalresponses.
Peru 2021 Expo Fair of Projects: TheSustainableManagementExpoisthecountry’smostimportantexhibitionofCorporateSocialResponsibilityProjects,organizedbyPeru2021Association,inpartnershipwiththeAcademicDirectionofCorporateSocialResponsibility(DARS),andtheInstitutefortheQualityofthePontificalCatholicUniversityofPeru.GoldFieldsparticipatedinformingabouttheachievementsofthefollowingdevelopmentprojects:GoldFieldsSocialResponsibility,Hualgayoc’sWaterDrinkingSystemsImprovement,constructionoftheCentralmarketofBambamarcabythemechanismofworksbytaxesandRedyPacProject:improvementoftheproductivemilkchainandstrengtheningofauthorities.
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Line Nº4:
Social Development (G4-SO1)
Ittargetstocontributetothestrengtheningand
sustainabledevelopmentbasedonsocialprogramsintheareasofdirectandindirectinfluence,mainlylinkedto
education,health,infrastructureandproductivedevelopment,amongothers.
Thislineofworkseeks,aswell,toestablishpartnershipstoachieveprojectssustainabilityandnon-dependence.Thisisdonethroughthedevelopmentandtransferoflocalcapacitiesand/orimprovementofequipmentandbasic
infrastructure.
Themainscopeofsocialprogramsimplementedduring2015isas
follows:
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√
ProjectName Agreement to strengthen the management of the Tingo-Maygasbamba River Water Users Board (JURTIMAY).
Goals
General goal:ImproveconfidenceoftheBoardofIrrigationUsersofTingoMaygasbambaRiverwithaconnectionbasedontheanalysisandattentiontotheirneeds,facilitatingmulti-sectorialandintegratedmanagementofwaterinitsareaofinfluence.
Specific goals:• SupporttheadministrativemanagementofJURTIMAY.• Formulateanddevelopaprofileandtechnicaldossierof“ReconstructionoftheMaygasCapuli
irrigationchannel”.• Formulateanddevelopaprofileandtechnicaldossierforthe“ReconstructionofElObreroirrigation
channel”• NegotiatewithStateorganizations,thefinancingofthetechnicalrecordsofMaygasCapuliandEl
Obrerochannels.
Background
WiththeparticipationofthewaterlocalauthoritiesfromtheChotano-Llaucano,theintegratedmanagementofwaterwillbepromoteandfacilitatedinthebasinoftheriverTingoMaygasbambaby:
• Formulateanddevelopaprofileandtechnicaldossierof“ReconstructionofMaygasCapuliIrrigationChannel”;developingthefollowingstudies:mechanicsofsoils,hydrologicalstudy,agronomicstudyandbusinessplan,drawingsandtechnicaldocumentation.
• Formulateanddevelopaprofileandtechnicaldossierof“ReconstructionElObreroirrigationchannel”,developingthefollowingstudies:mechanicsofsoils,hydrologicalstudy,agronomicstudyandbusinessplan,drawingsandtechnicaldocumentation.
• NegotiatewithStateagencies,financingoftherecordsofMaygasCapuliandElObrerochannels.
Likewise,wesupportedpresentationandvalidationofJURTIMAY’sparticipatorystrategicplantothesub-basinscommitteesofTingo-MaygasbambaandHualgayoc-ArascorgueRivers.
2015Investment S/. 149,688.60Length 10months
Beneficiaries BoardDirectorsTingoMaygasbambariverusersandusersofthevillageslocatedbetweenthedistrictsofHualgayocandBambamarca.
Field of Action
WaterField of Action
Water and Climate Change
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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ProjectName“Adapting together” Project with Lutheran World Relief and CEDEPAS Norte as unit
organization
Goals
General goals:• Improvinglocalcapacityforenvironmental
governancetoclimatechangeadaptationinthecityofHualgayoc.
• ApropermanagementofwaterresourcesinthecityofHualgayoc.
Forthispurpose,wewillseektoworkhandinhandwiththedistrictmunicipalityofHualgayoc,establishingclimatechangepriorities,andwithirrigationboardssupportingconflictreductionovertheuseofwater.
Background
General scope of Project components:1. Governanceforthedevelopmentofpublic
policiesforclimatechangeadaptation.2. Waterresourcesmanagement,including
thedevelopmentofirrigationcapacitiesandinfrastructure(irrigationsystemsaccordingtotheuseefficiencyofwatersourcesandtheavailabilityincreaseofwaterusetechniques).
3. Developmentofharvestingtechniquesandreforestationactivities.
2015Investment S/. 133,621.75Length January2015-October2017
Beneficiaries
Component 1Leadersofthe40villagesofHualgayocdistrict.
Component 225farmhouseslocatedinHualgayocandTingo-Maygasbambawatersheds.
Implemented activities:• StudyofwaterBalanceinHualgayocandTingo
Maygasbambawatersheds.• Informativecampaignabouttheimportance
ofwatershed,climatechangeanditseffectonwateravailability.
• Currentsituationdiagnosisofnaturalresourcesandclimaticthreatsasabasisfortheformulationofintegratedwatershedmanagementplans.
• Developmentoffivetechnicalrecordsforwaterharvesting.
• Constructionoffiveirrigationsystemsasastrategyforadaptationtoclimatechange.
• Twointernshipstoareaswheretherearesuccessfulexperiencesofwaterharvesting.
Field of Action
Water and Climate Change
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ProjectNameEnterprise Networks Promotion and Citizen Participation Project to improve peasants’ income in Hualgayoc with the support of Lutheran World Relief (LWR) and CEDEPAS
Norte as executing part.
Goals
General goals:
Increase400smallholdersmilkproductionandimprovequalityofthecheesesin30craftplantsintheprovinceofHualgayoc.
Achievefreshmilkandlocalcheeseproducerstoprovideproductsofguaranteedqualityandcompetitivepriceinnewmarkets.
Specific results:
1. 17%increaseofmilkproduction(6.4litersdailyto7.5liters,percow).
2. Createfivebusinessnetworkstoperformajointmarketing(LaRinconada,Cortaderas,PaloBlanco,LaTahonaandannexChilón).Thesenetworksmarketed2.512kilospermonthinCajamarca,cityofBambamarcaandLima.
3. Thefirstleaders’schoolhasbeenformed,havingtrained63leadersand25womenleaderswithaconstructivevisioninconflictsmanagementthroughdialogue.
Background
GoldFieldsLaCimamadeamonetarydonationwiththeaimofprovidingfinancialsupporttoLWRtoexecutetheproject.
Hualgayocprovincefarmingfamiliesarelow-incomebecausethemajoritypossesseslessthanthreelandhectares,whichhavelowyieldsinfodderproductiontofeedlivestockthatproducesonaveragefivelitersofmilkpercow.
Facedwiththissituation,REDyPACprojectsupportedthecapitalizationofsmallproducerswithcultivationandirrigationofpastures,artificialinseminationwithbreedinganimalsofbestgeneticquality,adviceofgoodbreeding&livestockmanagementpractices,andtheregularsupervisionofaveterinarian.
2015Investment S/. 264,266.55Length TheprogramwasexecutedbetweenJuly2009andApril2015.
Beneficiaries
General scope of the project
• 85%increaseinaverageannualincomeby,whereasbeneficiaryfamiliestosell15.7averagelitersperday,with2.1averageproducingcows.
• Familyincomealsoincreasedbythesaleofcheese,onaveragein61%.This,asaresultofinnovationstoimprovecheesequalityandpresentation,whichhasallowedsellingthemathigherprices.Therefore,itwasessentialtoimprovecheeseplants’infrastructureanddiversifytheproductionofcheeses(enhancedfreshcheese,pasteurizedcheese,Swisscheese,Andeanecological).
• Dairycattlebreedinghavebeenmodernized,improvingproductivityandthequalityofthemilk.
• Wehaveimplementedgoodmilkingpractices(BPO),aproperhealthmanagementandforageincreasedproductionofnutritionalvalue.
• Also,goodmanufacturingpractices(BPM)havebeenimplemented,includingcleaningordisinfectionofdairyplants,stainlesssteelequipmentandspecialinstrumentsthatallowmilkcontrolqualityandtamperingprevention,useofappropriateclothinganduseofgoodqualitywaterwithinthecheese-makingplant.
• Additionally,internshipshavebeenorganizedinotherdairyplantsinthearea.
Field of Action
Productive Development
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
LessonslearnedfromtheProject
Theywerelearnedattwolevels.Attheoperationallevel,CEDEPASNorte,asexecutingunitandwithextensiveexperienceinvariousproductivedevelopmentprojects,identified,asanimportantcomponent,therelationshipwithGoldFieldsLaCimabasedonagileandveryclosecommunicationforcoordination.Thiseasedtheprojectmanagementasawhole.Attheproductionlevel,thelessonwastoimplementprojectsfocuseddirectlyonpopulation’sneeds.
Nextsteps
WiththeCEDEPASNortesupport,atechnicalproposalwaspreparedbasedontheexecutedmanagementmodel.ItobtainedafinancingofFondoEmpleo(employmentfund)ofS/.1.5millionforathreeyearperiod,havingasstrategicalliesGoldFieldsLaCimaandLutheranWorldRelief.Thisfundingwillbeusedfortheprojectconsolidation,havingbeenalreadyvalidatedstrategiesandmethodologiesinthederivedmilkproductivechain.Themethodologyincludestrainingtechniques,subsequentmonitoringofeachintervention,andcommerciallinkageofbeneficiariesproducts.Animportantcomponentinthisstagewillbetosupportthegovernanceprocessintheproject.Therefore,theleaders’trainingineachdistrictwithauthoritycapabilitywillbenecessary.
“RedyPac is a successful project that CEDEPAS Norte takes as a model for the region, taking its results in the income increase of its beneficiaries, and which has shown that it is possible to have a good relationship with the authorities, peasant patrols, company and beneficiaries.”
AnaCeciliaAnguloCajamarcaBranchExecutiveDirectorCEDEPASNorte
“The program allowed us to focus efforts on increasing livestock capital with better genetic quality and considerably increase milk production per cow. This has been possible with good pasture management, i.e., supporting a load of four cows per hectare and with a continuous veterinary service, thus achieving high rates of pregnancy and birth. Also, we have achieved by implementing best practices, sanitation and hygiene in milk management. It is worth highlighting the effective presence of CEDEPAS Norte engineers to advise and train the beneficiaries as a key success factor. This proximity allowed solving problems in time and generating trust relationships to legitimize the activities of the project.”
EduardoContrerasDirectorProgramaPerúLUTHERANWORLDRELIEF
108
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√Field of Action
Productive Development
ProjectNameInstallation of permanent pasture in the Area of direct influence (ADI) of Cerro
Corona.
Goals
General goal:ImproveADIresidents’income,increasingtheproductionandqualityoffarmers’pasturesintheruralcommunitiesofElTingo,Pilancones,CoymolacheAltoandquadrature;throughthedevelopmentofentrepreneurialskillsinanewproductiontechnology.Eachyear,thecommunalassembliessubmitthelistofbeneficiariesforeachperiodtothecompany.BetweenJuneandSeptemberlandispreparedforsowingbetweenOctoberandApril.
Background
Thisactivityaimstostrengthenlivestock,whichisoneofthemaineconomicactivitiesofADI’sresidents.Asaresultoftheprogram,animprovedpasturehectareallowstobreedthreeanimals,whichpreviouslyitwasonlyfortwo.
Therefore,bothmeatandmilkyieldshaveincreased.
Eachyear,fornewareasplantingwithimprovedpastures,adiagnosisofparcelsiscarriedouttoverifythattheymeettherequirementsofmoisture,topography,soildepth;thenproceedstopreparethegroundwithagriculturalmachinery;and,finally,proceedwithseeding,usingcertifiedseeds.
Thecompanypromotesajointworkandthereforefinancedinputssuchaslime,seeds,fertilizerandtechnicalassistance.Meanwhile,communitybringsthelaborunskilled,thusstrengtheningtheintegrationofthecompanyandthelocalcommunities.
2015Investment S/. 734,511.9Length January–November2015
Beneficiaries 200familiesbenefitedinElTingo(100has),Pilancones(50has)andCoymolachehigh(50has).
109
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√
ProjectName 24-hour emergency program of bovine artificial insemination and health care.
Goals
General goal: Providetheserviceofartificialinsemination,adviceandtechnicalassistance,aswellassanitarytreatmentofthecattleintheADI.Specific goals:• Healthtreatmentto1,200cattleduringtheyear.
• Inseminating620cattleduring2015campaign.
Background
Theoverallpurposeoftheartificialinseminationprogramistoknowandpromotethebestanimalsevaluatedaccordingtorecords,andgeneticimprovementrawmaterial.Geneticevaluationcombinesthegenealogical,productiveinformationavailableproductiveconditions,andestimatedbreedingvaluesexpressedintermsofexpectedprogenydifference(EPDorDEP)foreachtraitofinterest(birthweight,weaningweight,dairyskill,ribeyearea,easeofbirthdelivery,etc.).Fromthesevalues,breeders’decisionsabouttheselectionprocessofthelivestock,accordingtoproductionobjectives.Artificialinseminationavoidsraisingareproduceranimalthatgeneratescostsinfood,health,management,etc.Similarly,topreventcommunicablediseasesthatcouldbetransmittedfromabulltocowandsoon.
2015Investment S/. 95,409.75
Length January–December2015
Beneficiaries
500peasantsassessedtechnically.420inseminatedcattleobtainedanaverageof55%offspring.1,200cattlewithhealthcare.Veterinariansintheareaweretrainedtoprovidehealthcaretofarmers’cattle.Also,underajointapproach,thecompanycoverstheattentionsofveterinariansandbeneficiariescoverthecostsofmedicines.In2015fouragriculturalveterinarianpromotersofElTingocommunityhavebeentrainedinCEFOPCajamarca.ThesepromotersaccompanytheworkofveterinariansintheADI.Thecompanyhasassignedaveterinarianbycommunity,whichalloweda365daysserviceayear.
Field of Action
Productive Development
110
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√Field of Action
Education
ProjectName Support with the hiring of teachers for schools in Cerro Corona’s Area of direct influence (ADI).
Goals
General goal: •Supporttheimprovementprocessofeducationqualitythroughtherecruitmentofteachersinthethree
educationallevels(initial,primaryandsecondary).
Specific goals:•Contributetotheincreaseofeducationqualitythroughvisitsthatteachersmaketostudents’homesand
totheparents’school.
•Supportappropriatetreatmentoftheteacherstothestudents.
Background
Giventheeducationalproblemsinthecountryandinthearea(oneteacherforthewholeschool),thecompanysoughttocomplementpedagogicalareasrequiredbythesectorcarryingoutthefollowingactivities:• ConstantaccompanimenttoteachersofapsychologistandaspecialistineducationintheADI.• Hiredteachersperformapersonalizedfollow-uptostudentswithlearningdisabilities.• Visitingthefamiliesofthestudents.• Schoolforparents.• Psycho-pedagogicallecturestoparents:40lectures,benefiting473parents.
2015Investment S/. 448,500
Length March–December2015
Beneficiaries
Total:831studentsfromthevillagesofElTingo,Pilancones,CoymolachehighandcityofHualgayoc,asfollows:• InitialeducationalschoolN°414Hualgayoc:124students.• PrimaryeducationalschoolN°82679Hualgayoc:181students.• PrimaryeducationalschoolN°82680Hualgayoc:63students.• PrimaryeducationalschoolN°82722ElTingo:63students.• PrimaryeducationalschoolN°101034Pilancones:19students.• JoaquínBernalHualgayocsecondaryeducationalschool:271students.• SecondaryeducationalschooltheTingo:84students.• Schoolofcommunitymanagement(CEGECOM)primaryCristoReyAltoCoymolache:26students.
111
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√
ProjectNameSchool transportation for students of schools located in the Area of direct
influence (ADI)-Cerro Corona.
Goals
General goal:• Offertransporttostudentsinordertoprevent
respiratoryillnessesandsupporttheirschoolperformance.
• Specificgoals:• Contributetoimprovingeducationquality
intheADI,offeringtheserviceofschooltransportation.
• OffertransportationtoprimaryandsecondarystudentsofElTingo.StudentsfromAnexoPredioLaJalcaPilanconesandCoymolachethatcommutetothecityofHualgayoc.
• Reducedropoutineducationalinstitutionsbenefited.
Background
ADIstudentslivinginscatteredareasareexposedtorespiratorydiseasesduetolowtemperaturesandlongwalkstotheirschools.Therefore,theyneedtransportationtoattendontimetheirschools;inthisway,healthrisksareavoidedandalsothephysicalwearthatinfluenceslowschoolperformance,especiallyintherainyandfrostyseasons.InAnexoPredioLaJalcaPilanconesandCoymolachetherearenosecondarylevelschool,bywhichstudentsaremovedtoHualgayoccityforbeingcloserthanElTingo.
2015Investment S/. 810,750Length March–December2015
Beneficiaries 350students.
Field of Action
Education
112
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√
ProjectName University scholarship program
Goals
General goal: • GrantscholarshipstooutstandingstudentswhograduatedfromhighschoolintheHualgayocdistrict.• Specificgoals:• Strengtheningthehumancapitalofyoungfellows,promptingthedevelopmentofHualgayocdistrict.• Developleadershipskillsamongstthefellowsandgenerateadynamiceffectinlocalyoungpeople.• Encourageyoungpeopletobemakersofchangethroughaproactiveattitude.
BackgroundThisprogramseekstosupportoutstandinghighschoolstudentsbyagrantthatcovers50%ofUniversitytuitionfortheircareer.Theother50%iscoveredbythePrivateUniversityGuillermoUrreloofCajamarca;GoldFieldslaCimahasanagreementwiththementioneduniversity.
2015Investment S/. 138,000Length 2010-2015period
Beneficiaries 48scholarshipsawarded
Field of Action
Education
√
ProjectName Enseña Perú Program
Goals
General goal: • ContributetoqualityeducationimprovementintheAreaofdirectinfluence(ADI)toexpand
opportunitiesforchildrenandyoungpeopleoftheinvolvededucationalinstitutions.Specific goals: • ImplementaneducationalprogramonN°82680JoaquínBernalprimaryschoolandKindergartenN°
414,cityofHualgayoc.
Background
Theprogramenablesexperienceexchangeamongyoungprofessionalleadersfromtheleadinguniversitiesofthecountry.TheagreementwithEnseñaPerúNGOhasalreadyachievedtheimprovementintheteachingandlearningofchildrenandHualgayoc’syoungpeople.
2015Investment S/. 310,500
Length March–December2015
Beneficiaries 431students
Field of Action
Education
113
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
√
ProjectName Integral health campaign in Hualgayoc, El Tingo, Pilancones and Coymolache Alto and El Cobro.
Goals
General goal: • Contributetoimprovinghealthcarequalityofpeoplereceivingspecializedmedicalcareandapply
appropriatesanitaryhabits.Specific goals: • Providecomprehensive,preventiveandrecuperativehealthcaretoresidentsofbenefited
communities.• Educationalactivitiesforhealthprevention.
Background
InCerroCorona’sareasofdirectandindirectinfluencethereisprevalenceofinfectiousdiseasessuchasIRAS(acuterespiratoryinfections),EDAS(acutediarrhealdiseases),intestinalparasitizes,acaroidandothers.Therefore,itisnecessarytosupporttheHualgayocHealthCentertoofferpreventivemedicalcampaigns.Attentioninthesecampaignsisdonebyphysiciansinapersonalizedway.
2015Investment S/. 138,000
Length Twocampaignstakeplacetwiceayearwiththegoalofreaching100%ofthepopulation.
Beneficiaries ADI(Areaofdirectinfluence)andtransportationrouteofconcentrate.
Field of Action
Health
Next Steps• Maintainapositiverelationshipwiththeareaofdirectinfluence(ADI)basedonthefollowingstrategies:
frequentcommunication,commitments,anduseselectiveandnewopportunitiesforsocio-productivedevelopment(waterharvestandvarioustrainings).
• Drinkingwaterprojectsplannedtobeimplementedin2016are:systemconnectionofHualgayoc’spotablewatersupplywithCuadraturadyke;connecthomesofCerroJesúswithCerroCorona’sPPC1waterwell;completetwodrinkingwaterprojectsthroughpoolsatCoymolacheAltoandCuadratura;anddesignthesecondphaseofElTingocommunitydrinkingwatersystem.
• Regardingtheinstitutionalpositioning,andinordertocontinuedisseminatingthesharedvaluestrategyofthecompany,activitieswillbeorganizedtoincreaseoperationsguidedbyseveralstakeholders,includingthepopulationofthenorthernpartofthecountry.Inaddition,thethirdstageoftheinitiatedradiocommunicationcampaignwillbeimplemented,aimingtopublicizeminingbenefitsandchangethenegativeperceptionaboutit.
• Reachagreementswiththecommunities,throughcontractssignedinassemblieswithatransparent,participatory,andtechnicallyassessedprocess.
• PromotedisseminationandimplementationoftheConcertedDevelopmentPlanforHualgayoc,allitsvillagesandcommunities.Strategicalliancesforbetterexecution.Inaddition,keepworkingonstrategicprojectsestablished,forwhichitisexpectedtocontinuecountingwiththesupportofCEDEPASNorteNGO.
114
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
115
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
FinancialInformation
9
116
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
117
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
118
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
119
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
GOLD FIELDS LA CIMA S.A.
Separate Financial statements
As of December 31, 2015 and 2014
Contents Page Separate Financial statements
Separate Statement of Financial Position 1
Separate Statement of Comprehensive Income 2
Separate Statement of Changes in Equity 3
Separate Statement of Cash Flows 4
Notes to the Separate Financial Statements 5- 42
120
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Tra
nsla
tion
of a
Rep
ort
orig
inal
ly is
sued
in S
pani
sh)
GO
LD F
IELD
S L
A C
IMA
S.A
. S
epar
ate
Sta
tem
ent
of F
inan
cial
Pos
ition
A
s of
Dec
embe
r 31
, 201
5 an
d 20
14
1 In
tho
usan
ds o
f sol
es
No
te
2015
20
14
2013
In t
hous
ands
of s
oles
N
ote
20
15
2014
20
13
Cu
rren
t as
sets
Cu
rren
t lia
bili
ties
C
ash
5
14,9
55
261,
740
170,
463
Tr
ade
acco
unts
pay
able
13
15
3,75
6 11
6,14
0 76
,259
Tr
ade
acco
unts
rec
eiva
ble
6
20,9
39
66,9
01
150,
675
O
ther
acc
ount
s pa
yabl
e 14
52
,243
63
,658
59
,073
O
ther
acc
ount
s re
ceiv
able
8
77,0
23
47,7
01
40,5
44
O
ther
fin
anci
al li
abili
ties
15
145,
603
31
111,
963
Inve
ntor
y 9
76,2
34
59,7
75
57,7
64
T
ota
l cu
rren
t lia
bili
ties
351,
602
179,
829
247,
295
Pre
paid
exp
ense
s
7,92
1 7,
308
7,49
5
To
tal c
urr
ent
asse
ts
19
7,07
2 44
3,42
5 42
6,94
1
No
n-c
urr
ent
liab
iliti
es
Oth
er f
inan
cial
liab
ilitie
s 15
6,
076
126,
449
83,9
30
No
n-c
urr
ent
asse
ts
P
rovi
sion
s
16
174,
564
154,
559
88,9
76
Inve
ntor
y
9 10
8,40
0 11
2,88
5 99
,865
Def
erre
d ta
x lia
bilit
y
Inve
stm
ents
10
23
,900
24
,071
24
,045
defe
rred
inco
me
17
316,
102
56,4
31
97,8
25
Pro
pert
ies,
pla
nt a
nd e
quip
men
t
11
1,87
7,30
1 1,
858,
029
1,91
1,81
0
To
tal n
on
-cu
rren
t lia
bili
ties
496,
742
337,
439
270,
731
Inta
ngib
le a
sset
s
12
436,
378
554,
208
554,
261
T
ota
l lia
bili
ties
848,
344
517,
268
518,
026
To
tal n
on
-cu
rren
t as
sets
2,44
5,97
9 2,
549,
193
2,58
9,98
1
Eq
uit
y
Is
sued
cap
ital
18
1,13
8,27
8 1,
250,
553
1,25
0,55
3
In
vest
men
t sha
res
19
156,
096
171,
492
171,
492
Oth
er c
apita
l res
erve
s 20
22
7,65
6 23
0,49
9 21
1,26
5
O
ther
equ
ity r
eser
ves
21
39,1
38
37,4
97
27,7
70
Ret
aine
d ea
rnin
gs
22
23
3,53
9 78
5,30
9 83
7,81
6
To
tal e
qu
ity
1,
794,
707
2,47
5,35
0 2,
498,
896
To
tal a
sset
s
2,64
3,05
1 2,
992,
618
3,01
6,92
2
To
tal l
iab
iliti
es a
nd
eq
uit
y
2,
643,
051
2,99
2,61
8 3,
016,
922
The
acco
mpa
nyin
g no
tes
from
pag
es 5
to
42 a
re a
n in
tegr
al p
art
of t
hese
sep
arat
e fin
anci
al s
tate
men
ts.
121
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Separate Income Statement For the years ended December 31, 2015 and 2014
2
In thousands of soles Note 2015 2014
Revenue 25 933,912 1,054,574 Cost of sales 26 (692,395) (604,068) Gross profit 241,517 450,506
Selling expenses 27 (40,532) (44,805) Administrative expenses 28 (12,969) (35,334) Other operating expenses 29 (139,763) (84,926) Other operating income 29 48,843 30,574 Operative earnings 97,096 316,015
Finance income (expenses): Finance income 30 568 391 Finance expenses 30 (16,816) (11,335) Exchange difference, net 30 (7,641) (6,749) (23,889) (17,693)
Profit before income tax 73,207 298,322 Income tax 24 (365,776) (105,981)
Net (loss) gain for the year (292,569) 192,341
The accompanying notes from pages 5 to 42 are an integral part of these financial statements
122
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Tra
nsla
tion
of a
Rep
ort
orig
inal
ly is
sued
in S
pani
sh)
GO
LD F
IELD
S L
A C
IMA
S.A
. S
epar
ate
Sta
tem
ent
of C
hang
es in
Equ
ity
For
the
year
end
ed D
ecem
ber
31, 2
015
and
2014
3
Nu
mb
er o
f sh
ares
Is
sued
cap
ital
Inve
stm
ent
shar
es
Oth
er c
apit
al
rese
rves
Oth
er e
qu
ity
rese
rves
Ret
ain
ed
earn
ing
s
To
tal
In t
hous
ands
of s
oles
C
om
mo
n
Inve
stm
ent
(no
te 1
8)
(no
te 1
9)
(no
te 2
0)
(no
te 2
1)
(no
te 2
2)
equ
ity
Bal
ance
as
of
Dec
emb
er 3
1, 2
013
1,24
7,50
3 17
1,06
6 1,
250,
553
171,
492
211,
265
27,7
70
837,
816
2,49
8,89
6
Net
gai
n fo
r th
e ye
ar
- -
- -
- -
192,
341
192,
341
Co
mp
reh
ensi
ve in
com
e o
f th
e
per
iod
-
- -
- -
- 19
2,34
1 19
2,34
1
Div
iden
ds
- -
- -
- -
(225
,614
) (2
25,6
14)
Sha
re-b
ased
pay
men
t
9,72
7
9,72
7 C
apita
lizat
ion
of le
gal r
eser
ve
- -
- -
19,2
34
- (1
9,23
4)
-
To
tal t
ran
sact
ion
s w
ith
Co
mp
any'
s
sto
ckh
old
ers
- -
- -
19,2
34
9,72
7 (2
44,8
48)
(215
,887
)
Bal
ance
as
of
Dec
emb
er 3
1, 2
014
1,24
7,50
3 17
1,06
6 1,
250,
553
171,
492
230,
499
37,4
97
785,
309
2,47
5,35
0
Net
loss
for
the
yea
r -
-
- -
(2
92,5
69)
(292
,569
)
Co
mp
reh
ensi
ve in
com
e o
f th
e
per
iod
-
- -
- -
- (2
92,5
69)
(292
,569
)
Cap
ital r
educ
tion
- -
(112
,275
) (1
5,39
6)
- -
(1
27,6
71)
Div
iden
ds
- -
- -
- -
(259
,201
) (2
59,2
01)
Sha
re-b
ased
pay
men
t -
- -
(1,2
02)
- (1
,202
) Le
gal r
eser
ve
- -
- -
(2,8
43)
2,84
3 -
-
To
tal t
ran
sact
ion
s w
ith
Co
mp
any'
s
sto
ckh
old
ers
- -
(112
,275
) (1
5,39
6)
(2,8
43)
1,64
1 (2
59,2
01)
(388
,074
)
Bal
ance
as
of
Dec
emb
er 3
1, 2
015
1,24
7,50
3 17
1,06
6 1,
138,
278
156,
096
227,
656
39,1
38
233,
539
1,79
4,70
7
The
acco
mpa
nyin
g no
tes
from
pag
es 5
to
42 a
re a
n in
tegr
al p
art
of t
hese
sep
arat
e fin
anci
al s
tate
men
ts.
123
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Separate Statement of Cash Flows For the years ended December 31, 2015 and 2014
4
In thousands of soles 2015 2014
Cash flows operating activities: Net (loss) gain for the period (292,569) 192,341 Charges (credits) to the results which do not represent cash flow: Deferred income tax 259,671 (41,394) Depreciation and amortization 267,363 225,867 Embedded derivative 25,841 27,448 Other adjustments 72,479 119,636 Increase (decrease) in the cash flows from operating activities for net changes in assets and liabilities: Trade accounts receivable 20,121 56,326 Other accounts receivable 15,091 67,521 Inventory (11,974) (15,031) Prepaid expenses (613) 187 Trade accounts payable 37,616 (39,890) Other accounts payable (14,763) (2,071) Flows from operating activities: Interest paid (2,889) (2,085) Taxes paid (44,229) (60,364) Net cash from operating activities 331,145 528,491
Cash flows from investing activities: Acquisition of property, plant, equipment and intangible (220,068) (147,420) Acquisition of investments (13) (26) Net cash used in investing activities: (220,081) (147,446)
Cash flows from financing activities: Capital reduction (127,671) - Loans and payments related to financing, net 28,088 (67,328) Dividends paid (259,201) (225,614) Net cash used in financing activities: (358,784) (292,942)
Net (decrease) increase in cash and cash equivalents (247,720) 88,103 Cash and cash equivalents at beginning of year 261,740 170,473 Effect of variations on exchange difference on cash 935 3,164 Cash and cash equivalents at the end of year 14,955 261,740
Transactions that do not generate cash flows Increase in cost for mine closure - 46,451
The accompanying notes from pages 5 to 42 are an integral part of these financial statements.
124
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
5
1. Reporting Entity
A. Background Gold Fields La Cima S.A. (hereinafter the Company) is an indirect subsidiary of Gold Fields Limited (South Africa) through Gold Fields Corona (BVI) Limited (British Virgin Islands), which owns 99.7766% of its capital stock. The Company’s registered office is Av. El Derby No. 055, Torre 1, Of. 301, Urb. Lima Polo & Hunt Club; Santiago de Surco, Lima, Peru.
The Company was created on November 19, 2003, as result of the simple reorganization of Sociedad Minera Corona S.A. which spun off and transferred an equity block for approximately S/ 64 millions of the assets related to Cerro Corona project, mainly composed by concessions, mining rights, exploration and pre-operating expenses. Subsequently, on June 2007, the related Company Minera Gold Fields S.A. through a simple reorganization transferred to the Company an equity block at its carrying amount for approximately S/ 317 million which included expenses, investments and related liabilities with the pre-operation and development phases of Cerro Corona project.
B. Business Activity
The Company is engaged in the production and trading of gold-copper concentrate. Cerro Corona mining operation is located in the district of Hualgayoc, province of Hualgayoc, Department of Cajamarca.
C. Legal Stability Agreement with PROINVERSION
On October 3, 2007, the Company entered into a Legal Stability Agreement with Private Investment Promotion Agency (PROINVERSION); granting the Company stability on tax systems related to income tax, the systems for contracting workers and export promotion systems for a 10-year period. In return, the Company has mainly undertaken to issue shares representative of capital stock in favor of Gold Fields Corona (BVI) Limited for approximately US$ 244.7 million against the receipt of contribution that this Company shall make within a term not exceeding 2 years beginning on the date such agreement is signed. The Company complied with this commitment in 2008 through the capitalization of obligations in favor of Gold Fields Corona (BVI) Limited.
D. Approval of separate financial statements
The financial statements as of December 31, 2015 were approved by Management on February 26, 2016 and will be presented to the Board of Directors to approve their issuance and then submitted for consideration of the General Stockholders’ Meeting to be held within the period prescribed by law, for final approval. In the opinion of management, the accompanying financial statements will be approved by the Board of Directors and the General Stockholders’ Meeting without amendments. General Stockholders’ Meeting, held on March 31, 2015, approved the separate financial statements as of December 31, 2014.
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2. Basis for the Preparation of Separate Financial Statements
A. Statement of compliance The Company's separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) issued by International Accounting Standards Board (IASB), in force as of December 31, 2015.
B. Information Responsibility The information contained in these financial statements is the responsibility of the Company’s Board of Directors that expressly states that all the principles and criteria included in the IFRS issued by the IASB have been applied.
C. Basis of Measurement
The separate financial statements have been prepared based on an historical cost basis, from the accounting records maintained by the Company, except for the following items measured at fair value. Financial instruments are measured at fair value. Liabilities from cash-settled share-based payments are measured at fair value.
D. Functional and presentation currency
These financial statements are presented in soles (S/), which is the Company’s functional and presentation currency.
E. Use of Estimates and Judgments The preparation of the financial statements in conformity with IFRS requires the Company's management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future affected periods. Information about significant judgments in applying accounting policies that have the most significant effect on the amounts recognized in these financial statements are as follows:
i. Temporary adjustments to sales prices of gold-copper concentrates are
determined according to sale contracts after the delivery date. The Company’s concentrates sales are based on trade agreements for which a sale provisional value is allocated that will be adjusted to a final future price quote. The sales adjustment is considered as an embedded derivative that must be separated from the contract. The trade agreement is related to the sale of concentrates at market prices in the London Metal Exchange (LME) and the Bullion Market Association (BMA) for copper and gold, respectively.
The embedded derivative does not qualify as hedging instrument; therefore, changes in the fair value are recorded in the statement of comprehensive income.
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ii. Production-unit method Reserves are used when depreciation and amortization of mine directly related assets are determined. This results in charges for depreciation and/or amortization proportional to the deterioration of the anticipated remaining life of mine production. Every useful life is annually evaluated based on i) physical limitation of asset, and ii) new evaluations of economically feasible reserves. These calculations require the use of estimates and assumptions which include the amount of estimated reserves and estimates of future capital disbursements.
iii. Determination of reserves and mineral resources
The Company calculates its ore reserves annually based on the guidelines of the South African standard- SAMREC Code (South African Mineral Resource Committee), which establishes the standards and geological, technical and economic recommendations. The process to reserve the amounts is complex and requires subjective decisions when evaluating all available geological, geophysical, engineering and economic information. Reviews of reserve estimates may occur due to review of data or geological assumptions, changes in assumed prices, production costs and results of exploration activities, among others. Changes in reserve estimates may affect mainly depreciation of fixed assets directly related to mining activity, mine closure provision, evaluation of deferred assets recoverability and amortization period of pre-operating, development and intangible assets costs. At present, the Company’s management uses international experts to validate reserves inventory.
iv. Provision for mine closure
The Company calculates a provision for mine closure on an annual basis. To determine such provision, significant estimates and assumptions are made as there are several factors affecting the final liability for this obligation. Factors include estimates of scope and costs of closure activities, technological changes, changes in regulations, costs increase compared to inflation rates and changes in discount rates. Estimates and/or assumptions may turn into actual expenses in the future differing from amounts recorded when provision was determined. The provision as of reporting date represents the best estimate of Company’s management of the present value of future costs related to mining unit’s closure under current operating conditions. The Company records a provision for its mining unit closure which represents its legal obligation to restore the environment at the end of operations. On the date of initial recognition of the liability that arises from this obligation, which is shown as discounted at fair value, the same amount is charged to the property, plant and equipment account in the statement of financial position.
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Subsequently, liability is adjusted in each period to reflect the finance cost considered in the initial measurement, and in addition, the capitalized cost is depreciated over useful life of related asset. The Company will recognize any resulting gain or loss upon provision settlement. Changes in total provision amount or useful life of related assets arising from initial estimates review are recorded in respective assets and liabilities.
v. Provision for deterioration of accounts receivable
The amount of the provision for impairment of trade accounts receivable is determined when there is objective evidence that the Company will not collect all the amounts overdue according to terms originally established of the selling transaction.
vi. Provision for administrative and labor proceedings
By their nature, contingencies will only be resolved upon the occurrence or non-occurrence of one or more future events. Contingencies determination involves the exercise of judgments and assumptions on future event results.
vii. Share-based compensation plan
The Company calculates officers‘share-based compensation plan cost at the fair value of the call option on the date the option is granted, using appropriate valuation technique. To determine the fair value of the option, the yield of the share on the Philadelphia Stock Exchange (Philadelphia XAU index) is taken into account as a referential market price. Other variables are included to estimate the number of options to grant.
viii. Impairment of Long-lived Assets
The Company considers the value of its permanent assets will be recovered during the normal course of operations. The estimate of impairment amount is based on assumptions on international metal prices traded at world production levels and estimates of proved and probable reserves of the Company. As of the date of the financial statements, available projections of these variables show trends favorable to the Company’s interests which supports the recovery of permanent assets.
ix. Fair value hierarchy
Fair value of financial assets and liabilities recorded in the statement of financial position cannot be derivatives from active markets. Fair value is determined using valuation techniques that include the discounted cash flow models. Data of these models area taken from observable markets, if possible, but when it is not feasible, a degree of judgment is required when determining the fair value. Judgments include considerations of liquidity, credit and volatility risks. Changes in assumptions concerning these factors may affect fair values of recorded financial instruments.
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F. Restatement of Financial Statements The Company has conducted an accounting treatment assessment of the share-based payments, reason why this item has been reclassified in the financial statements. According to IAS 8, the effect of the before mentioned regularization was recognized retrospectively, restructuring the financial statements as of December 31, 2014, as shown below:
Financial Position
In thousands of soles Reported Corrected Difference Total assets 2,992,618 2,992,618 - Total liabilities 575,610 517,268 58,342 Total equity 2,417,008 2,475,350 (58,342)
3. Significant Accounting Policies
Significant accounting policies applied to prepare the financial statements are detailed below. These principles and practices have been applied consistently to all years presented in these financial statements, unless otherwise indicated. A. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits in banks, and, other short-term highly liquid investments with original maturities of three months or shorter, with non-significant risk of changes in its fair value.
B. Trade accounts receivable
Trade accounts receivable are initially recognized at their fair value and are subsequently valued at the future price according to each contract. The provision for deterioration of trade accounts receivable is determined when there is an objective evidence that the Company will not collect all the amounts overdue according to the terms originally established in the sale transactions and considering the judgment and experience of management.
C. Non-derivative instruments
Non-derivative financial instrument is any contract that gives rise to both a financial asset in one entity and a financial liability, or equity instrument in another. In the case of the Company, financial instruments correspond to primary instruments such as accounts receivable and accounts payable.
Non-derivative financial instruments are classified as asset, liability, or equity according to the contract that gave rise to the financial instrument.
The interest, dividends, gains, and losses generated by a financial instrument, and classified as liability, are recorded as income or expense in the statement of comprehensive income. The payment to holders of financial instruments classified as equity is recorded directly against equity. The financial instruments are offset when the Company has the legal right to offset them, and management has the intention of paying them on a net basis or negotiating the asset, and paying the liability simultaneously.
Non-derivative financial instruments shall be recognized in the financial statements at fair value. Fair value is the amount for which an asset could be exchanged between knowledgeable willing parties, or a liability settled between a debtor and a creditor in an arm’s length transaction.
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In management’s opinion, the carrying amount of financial instruments as of December 31, 2015 and 2014, is substantially similar to their fair values due to their short period of realization and/or maturity. The recognition and valuation criteria of those accounts are disclosed in the notes to the financial statements on accounting policies.
D. Financial assets The Company classifies its financial assets into the following categories: financial assets at fair value through profit or loss, and loans and accounts receivable. The classification depends on the purpose for which the investments were acquired. Management determines the classification of their financial assets as of the date of their initial recognition and re-assesses this classification as of every closing date.
Financial assets at fair value through profit or loss A financial asset is classified in this category if it was mainly acquired in order to be sold in the short-term or if it is so designated by management. Derivative financial instruments are also classified as marketable unless they are designated as hedges. Assets under this category are classified as current assets if they are held as marketable or they are expected to be realized within 12 months as from the date of the statement of financial position. The Company has not had these financial assets as of December 31, 2015 and 2014. Loans and accounts receivable Loans and accounts receivable are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Company provides with money, goods or services directly to a debtor with no intention to trading the account receivable. They are included in current assets, except for those whose maturities exceed 12 months after the date of the statement of financial position. The latter are classified as non-current assets. Loans and accounts receivable are included in trade accounts receivable, accounts receivable from related parties, and other accounts receivable in the statement of financial position. The Company evaluates at each closing date of the period whether there is objective evidence of the impairment of a financial asset or group of financial assets.
E. Inventory Inventories are valued at the lower of cost or net realizable value. Cost is determined using the weighted average method; the cost of inventories in transit is determined using the specific cost method. Cost of finished products and work-in-progress comprise cost of mineral extraction, direct labor, direct costs, and general expenses, and excludes finance expenses and exchange differences. The net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. For the reductions of the carrying amount of inventories at net fair value, a provision for inventory obsolescence is recorded to results of the period when those reductions occur.
Long-term inventories correspond to porphyry mineral, which will be processed at the end of the mine useful life. The Company, at each closing date of the period, conducts an impairment testing as of December 31, 2015 and 2014. The management considers that such inventories do not require an estimate for impairment.
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F. Investment in subsidiaries The subsidiaries are the entities on which the Company is able to manage its financial and operative policies as owner of more than half of the voting shares. The Company also assesses the control where they do not have more than 50% of the right to vote, but are able to manage operative finance and policies by virtue of facto control. Investment in subsidiaries are shown in the financial statements at cost. Cash dividends received from subsidiaries are credited to income statement when its distribution is approved. Dividends received in subsidiaries' shares are not recognized in the financial statements. The Company holds 99.99% of the capital stock of Hualgayoc Holding S.A.C. The investment in the subsidiary is recorded at cost. The Company evaluates at each closing date of the period whether there is an objective evidence of significant or long impairment of its investment value. If there is evidence, the impairment affects the statement of comprehensive income.
G. Properties, plant and equipment
The property, plant and equipment is recorded at historical acquisition cost, less accumulated depreciation. The cost of an item of property, plant and equipment comprises its purchase price or construction costs and includes disbursements directly attributable to the acquisition or manufacturing of these items. The purchase price or the cost of construction correspond to the total amount paid and the fair value of any other compensation delivered in the asset acquisition. Subsequent costs attributable to the goods of fixed assets are included in the carrying amount or recognized as separate asset, as applicable, only when it is probable that future economic benefits associated to the asset will flow to the Company, and their cost can be reliably measured, otherwise are charged to costs of production or to expenses, as appropriate. Maintenance and repair expenses are charged to production costs, as appropriate, in the period when they are incurred. Expenses incurred to replace a component of an item of property, plant and equipment are capitalized as a separate component and the carrying amount of the replaced component is removed. In the case that the replaced component has not been considered as a separate component of assets, the replacement value of the new component is charged to cost. Assets under construction are capitalized as a separate component. By the end, the cost of these assets are transferred to a definitive category. Work-in-progress are not depreciated. Property, plant and equipment items are derecognized when they are sold or when no future economic benefits are expected from its use or subsequent sale. Gains and losses for sale of assets correspond to the difference between the income from the transaction and the asset book value. They are included in the statement of comprehensive income. The residual value and the economic useful life of an asset and applied depreciation methods are reviewed and adjusted, as needed, at each date of statement of financial position. Any change in these estimates are prospectively adjusted.
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Land is not depreciated. Rate used for the annual depreciation of vehicles is 20%; furniture and fixtures is 10%; IT equipment and various equipment are 33%. Depreciation is calculated using the straight-line method, as follows:
Depreciation rate Years
Vehicles 20% 5 Furniture and fixtures 10% 10 IT equipment 33% 3 Various equipment 33% 3
Estimated useful life of remaining assets is based on estimated useful life of the mine, calculated according to the volume of proven reserves based on processed tons of mineral. The carrying amount of an asset is written off immediately at its recoverable amount when the carrying amount of the asset exceeds its estimated recoverable value.
H. Intangible assets Mining rights Mining rights are recorded at acquisition cost and at the cost of transfer of the assets received by spin off of the equity block and by simple reorganization. Such costs are amortized as of the beginning of the commercialization stage, based on the estimated useful life of the deposit calculated according to the volume of proven reserves and based on the tons of processed ore. Mine exploration, development and preparation costs: The Company has adopted IFRS 6 for the recognition of its exploration and evaluation expenditures. This standard mandates that mining entities shall establish an accounting policy that specifies which expenses of its exploration and evaluation activities cost will be recognized as assets and, later, apply this policy consistently. In this context, the Company has maintained its accounting policy which consists of recognizing as assets the expenses incurred in exploration and evaluation activities. Exploration, evaluation and development expenses are presented at cost. The cost of these assets includes the expenses incurred in the incorporation of the Company and the investments made in the exploration of its mineral deposits such as: acquisition of exploration rights, topographic, geological, geochemical and geophysical studies, diamond drilling, tests and those related to evaluation activities on the technical feasibility and economic viability of extraction of mineral resources. Such costs are amortized as of the beginning of the commercialization stage, based on the estimated useful life of the deposit calculated according to the volume of proven reserves and based on the tons of processed ore. Likewise, those disbursements that increase significantly the level of reserves of mining units under exploitation are capitalized. Development costs necessary to maintain production levels are charged to production costs in the period they occur.
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Pre-operating expenses The Company’s policy also establishes that the pre-operating expenses directly related to exploration and mining development activities shall be recognized as assets. Pre-operating expenses related to the Cerro Corona mining project development were capitalized and amortized from the beginning of the commercial stage, based on the estimated useful life of the mineral deposit, calculated according to the volume of proven reserves and the tons of ore processed. Deferred stripping costs Deferred stripping costs comprise the removal of overburden and other waste products from the mine which were capitalized during the development stage of Cerro Corona project and are amortized from the beginning of commercial stage, based on estimated useful life of the mineral deposit, calculated according to the volume of proven reserves and the tons of ore processed.
Research and projects expenses These assets are recorded at cost and mainly comprise the disbursements incurred to improve the capacity of the tailing dam. Amortization will begin as from the date it begins to operate and will be amortized during the estimated useful life of the mineral deposit, calculated according to the volume of proven reserves and tons of ore processed
I. Other financial liabilities
In conformity with IAS 39, financial liabilities are classified as: i) financial liabilities at fair value through profit or loss, and ii) other financial liabilities. Management determines the classification of its financial liabilities at initial recognition date. The Company's financial liabilities include trade accounts payable, accounts payable to related parties and other accounts payable. Trade accounts receivable are initially recognized at their fair value and are subsequently valued at amortized cost. Amortized costs include costs directly attributable to the transaction.
J. Finance lease
Leases where the Company substantially assumes all risks and rewards related to ownership are classified as finance assets. At the inception of the lease, they are recorded as assets and liabilities at amounts equivalent to the fair value of the leased assets. These assets are depreciated using the straight-line method based on their estimated useful life for similar own goods. Annual depreciation is recognized as expenses. Other leases are considered as operating leases and are recognized as expense using the straight-line method through the lease term.
K. Income tax and deferred income tax
Income tax expenses of the period comprise current and deferred income tax. Taxes are recognized in the statement of comprehensive income.
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Income tax is calculated based on tax laws enacted or substantially enacted as of the date of the statement of financial position. Management evaluates periodically its position in income tax returns regarding situations in which tax laws are subject to interpretations. Deferred income tax is determined using the liability method based on temporary differences derived from tax basis of assets and liabilities, and their balances in financial statements. Deferred income tax is determined using tax rates (and legislation) enacted as of the date of the tax stability agreement signed by the Company that are expected to be applied when the deferred income tax asset is realized or the income tax liability is paid. A deferred tax asset is only recognized to the extent that it is probable that future taxable profits will be available, against which temporary differences can be utilized.
L. Provisions
General Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and when it is probable that an outflow of resources will be required to settle the obligation, and it is possible to reliably estimate its amount. When the effect of the time value of money is material, the value of the provision is the present value of the expenditure required to settle the provision. When the Company estimates that a provision is reimbursable, for example, in cases covered by insurance contracts, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain.
Provision for environmental remediation The Company records a provision for environmental remediation whose main component relates to the decommissioning works. The methodology for calculating the liability represents the present value of the future expenditure required in the above-mentioned tasks, based on studies conducted by independent experts and presented to the Ministry of Energy and Mines. Such liability is shown under 'provisions' in the statement of financial position.
M. Impairment loss When there are events or circumstantial economic changes indicating that the value of long-lived asset might not be recoverable, management reviews the carrying amount of these assets. If after this analysis, carrying amount exceeds its recoverable amount, an impairment loss is recognized in the comprehensive income. Recoverable amounts are estimated for each asset or, if it is not possible, for each cash-generating unit. The recoverable amount of a long-lived asset or a cash-generating unit is the higher of the asset’s fair value less selling costs and its value in use. Fair value less selling cost of a long-lived asset or cash-generating unit, is the amount resulting from an arm’s length sale transaction, between knowledgeable parties, less corresponding selling costs. Value in use is the present value of the future cash flows expected to arise from an asset or a cash-generating unit.
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N. Revenue recognition Revenues are recognized when all the risks and rewards of ownership of the delivered asset are transferred; and it is probable that the economic benefits associated to the transaction will flow to the Company; and finally amount can be reliably measured. The following specific criteria shall be met in order to recognize a revenue: Sale of concentrates In the case of export of gold-copper concentrates, sales are recognized when shipments are made; in the case of local sales, on the date when the concentrate is delivered in the authorized warehouse; in this moment all associated risks and rewards are transferred to the ownership of concentrates. Initially, sales of concentrates are recorded at estimated value, according to temporary settlements at shipment date and subsequently they are adjusted on a monthly basis and/or when final settlements are received. The higher or lower impact is recorded in the period it occurs when final settlement of concentrates is different from temporary settlements used to book revenue.
Embedded derivative Concerning the measurement of revenues, on the date of sales recognition, the Company recognizes the income from sale of concentrates based on the temporary sales of value as per international metal prices on such date. The final price is subject to a future settlement according to trade agreements signed by clients that normally range from 90 and 180 days after delivering the concentrate to the client; the final adjustments is based on market prices established in the trade agreement. Exposure to change in the price of metals generates an embedded derivative that is separated from the trade agreement. At the closing of each period, the temporary sales value is adjusted at the fair value of the aforementioned agreement, considering the estimated price for the period stipulated in the agreement. The sale price for the quotation period can be reliably measured since it is based on metal prices (copper and gold) that compose of the concentrate, which are actively traded in international markets. Temporary adjustment of sales value is recorded as an increase or decrease of net sales.
O. Cost and Expense Recognition The cost of sales that corresponds to the production cost of concentrates commercialized by the Company is recorded when goods are delivered at the same time that revenue from such sale is recognized. Other costs and expenses are recognized as they accrue, regardless of the moment when they are incurred, and are recorded in the periods to which they relate.
P. Finance costs Finance costs incurred in the construction of any qualifying asset are capitalized during the period required to complete and prepare the asset for its intended use. Other finance costs are recognized in the statement of comprehensive income.
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Q. Contingencies Contingent liabilities are not recognized in financial statements. They are disclosed in notes to financial statements unless their occurrence is remote. Contingent assets are disclosed in notes to the financial statements, when an inflow of economic benefits is probable.
R. Capital and investment shares
Common and investment stocks are classified as equity and are recognized at their face value.
S. Finance income and cost
Finance income and costs are recorded in the statement of comprehensive income of the period to which they relate, and they are recognized when accrued, regardless of the moment of their collection or payment.
T. Foreign currency transactions and balances
Foreign currency transactions are those transactions carried out in a currency other than the functional currency. Foreign currency transactions are translated into functional currency at the exchange rates at the dates of the transactions. Gains or losses on exchange difference resulting from the payment of such transactions and from the translation of monetary assets and liabilities stated in foreign currency at exchange rates ruling at period-end closing are recognized in the statement of comprehensive income.
U. New accounting pronouncements
The following standards and interpretations have been published for application to periods beginning after this financial statement presentation date.
IFRS 9 Financial Instruments replaces the existing guidance in IAS 39 Financial
Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment of financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. The Company will assess the total impact of IFRS 9 and plans to adopt IFRS 9 by the accounting period beginning on or after January 1, 2018, with early adoption permitted.
IFRS 14 Regulatory Deferral Accounts specifies financial information requirements
for regulatory deferral account balances that arise when an entity provides goods or services to clients at a price or rate subject to regulation. The standard is mandatory for reported annual periods beginning on or after on January 1, 2016. Early adoption is permitted.
IFRS 15 Revenue from Contracts with Customers establishes a comprehensive
framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance including IAS 18 Revenue
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IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. The amendment is not obligatory for accounting period beginning on January 01, 2017. Early adoption is permitted.
IFRS 16 Leasing, issued on January 13, 2016. This standard requires the companies
to account all the leases in its financial statements. The main impact in the entities with operating leases is the increase in finance asset and debt, as well as in its report metric. The standard is mandatory for reported annual periods beginning on or after January 1, 2019. Early adoption is permitted.
Amendments to IAS 12 Income Taxes - Recognition of deferred tax assets for
unrealized losses. This amendment emphasizes on the existence of legal restrictions on the use of future taxable profits against which the temporary differences will be applied, as well as the existence of sufficient evidence of the amount of recovery in the value of deferred assets for an amount greater than its carrying amount. This amendment becomes mandatory for the Company on January 01, 2017. Early adoption is permitted.
Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities - exception to
consolidating implementation - a) Consolidation of intermediary entities: It specifies how to account an investment entity which provides related investment services. b) Exception for main intermediary managed by investment entities. c) Policy selection of equity method to participations in associated investment entities or joint venture. Amendment is obligatory for annual periods beginning on or after January 1, 2016. Early adoption is permitted.
Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of
Depreciation and Amortization. This amendment introduces various restrictions to the use of revenue as a basis of depreciation and amortization. This amendment is obligatory for annual periods beginning on or after January 1, 2016. Early adoption is permitted.
Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities - Asset transfer
of contribution between an investor and its related or joint venture. This amendment requires that when transfers to subsidiaries are performed to an associated or joint venture, all the profit is recognized when the transferred assets comply "business" definition according to IFRS 3 - Business Combinations. It strengthens the "business" definition for recognition in results, also considers accounting for transactions which consider partial maintenance in assets that are not business. Amendment is obligatory for annual periods beginning on or after January 1, 2016. Early adoption is permitted.
Amendment to IAS 27 Separate Financial Statements: Equity Method in Separate
Financial Statements – New option for subsidiaries, associates and joint venture. This amendment allows the use of the equity method in Separate Financial Statements, and apply to the accounting not only for associates and joint ventures, but also for subsidiaries. The introduction of equity accounting as a third option – in addition to the existing cost and fair value options – is also likely to increase diversity in reporting practice. The amendments will be effective for annual periods beginning on or after January 1, 2016. Early adoption is permitted.
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Amendment to IAS 1 Presentation of Financial Statements: Disclosure Initiative. This amendment concerns impairments perceived by preparers of financial information, to exercise their judgment in the presentation of its financial information. The changes are summarized as: a) Clarification that the information should not be hidden by adding or delivering immaterial information. Materiality considerations apply to all parts of the financial statements, even when a standard requires a specific disclosure materiality considerations apply; b) Clarification of the list of items by line to be presented in these financial statements can be aggregated or disaggregated as an additional and relevant guidance in the subtotals in these financial statements and clarification of the participation of the entity in the 'other comprehensive income of associates and joint ventures' accounted for under the equity method should be presented in the aggregate form and individual items based on whether or not they will be reclassified to profit or loss. Amendments are effective for annual periods beginning on or after January 1, 2016. Early adoption is permitted.
The Company’s management is evaluating the impact, if any, of the adoption of these amendments and new IFRS issued but not yet effective as of the date of the financial statements.
4. Financial Risk Management
The Company has exposure to the following risks arising from its activities: market risks (including currency risk, interest rate risk and price risk), credit risk, liquidity risk and capital management. The Company’s program of financial risk management seeks to minimize potential adverse effects to its financial performance. The most important aspects for the risk management are:
A. Currency risk
Main foreign currency transactions are carried out in U.S. dollars and relates to accounts receivable and the Company’s financing activities, which determine the assets and liabilities in such currency. The Company is exposed to the risk that the exchange rate of the U.S. dollar fluctuates significantly compared to the Peruvian sol. Management has decided to assume the foreign exchange risk of this position; therefore, it has not carried out transactions with hedging derivative instruments. Balances in foreign currency as of December 31 are summarized as follows: In thousands of U.S. dollars 2015 2014
Assets: Cash 2,694 84,191 Trade accounts receivable and other accounts Receivable 17,040 34,753 19,734 118,944
Liabilities: Trade accounts payable (38,684) (29,135) Accounts payable to related parties (77) (45) Other financial liabilities (44,481) (42,301) (83,242) (71,481)
Net asset (liability) position (63,508) 47,463
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(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
19
As of December 31, 2015, the exchange rates used by the Company to record balances in foreign currency, published by the Banking, Insurance and Private Pension Plan Agency - SBS, were S/ 3.407 and S/ 3.410 per US$ 1 for assets and liabilities, respectively (S/ 2.986 and S/ 2.990 per US$ 1 for assets and liabilities, respectively, as of December 31, 2014). As of December 31, 2015, the Company recorded a net exchange gain of S/ 7,641 thousand (net exchange loss of S/ 6,749 thousand as of December 31, 2014). In case of devaluation or revaluation of U.S. dollar compared to the sol as of December 31, 2015 and 2014, with all other variables remaining constant, net profit before income tax had increased or decreased as follows:
Increase/decrease in Effects on results
before taxes Period US$ exchange rate In thousands of soles
2015 +10% 1,191 -10% (1,191) 2014 +10% 14,021 -10% (14,021)
B. Interest rate risk
Since the Company does not have significant interest-bearing assets, its income and operating cash flows are substantially independent from changes in the market interest rates. The Company’s interest rate risk arises from its long-term debts. Variable rate debts expose the Company to the cash flow interest rate risk. Fixed-rate debts expose the Company to interest rate risk on liabilities fair value.
The Company does not have a formal policy to determine how much exposure should be at fixed or variable rate. However, when assuming new loans or funding, management exercises judgment to decide whether a fixed or variable rate would be more favorable to the Company during the expected period until maturity. As of December 31, 2015 and 2014, fixed-term and variable instruments held by the Company are the following:
In thousands of soles 2015 2014
Fixed rate instruments Finance lease (8,459) (49) Variable rate instruments Other financial liabilities (143,220) (126,431)
139
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
20
If, as of December 31, 2015 and 2014, interest rates on instrument at variable base had been 0.5% higher/lower and all the other variables had remained constant at the closing of the period, the results for the year before taxes would have been affected as follows:
Increase/decrease Effects on results
before taxes Period in interest rate In thousands of soles
2015 +0.5% 17,918 -0.5% (17,918) 2014 +0.5% 2,898 -0.5% (2,898)
C. Price risk
The Company is exposed to the risk of price fluctuation of copper and gold. The sales flows of its concentrates are exposed to the fluctuation of market prices of such metals. Fluctuation effects of market prices of metals increase the risk of potential capital requirements to stockholders to cover the need of cash from operations. If, as of December 31, 2015 and 2014, the concentrate price had been 5% higher/lower and the remaining variables had remained constant, the results for the year before taxes would have been affected as follows:
Increase/decrease Effects on results
before taxes Period in prices in thousands of soles
2015 +5% 46,696 -5% (46,696) 2014 +5% 52,738 -5% (52,738)
D. Credit risks
The Company’s credit risk arises from the debtors’ inability to meet obligations upon maturity. The Company’s management considers there is no significant credit risk since its clients have short-term credit periods according to contract terms and that no bad debt issues have occurred. Finally, the Company places its liquidity surplus in prestigious financial entities, establishes conservative credit policies, and constantly evaluates conditions existing in the market where it operates. Consequently, the Company does not foresee any significant loss arising from this risk. Further information on credit risk is explained in note 6 herein.
E. Liquidity risk Prudent liquidity risk management implies holding enough cash and cash equivalent, and financing available through a proper number of credit sources. Due to the dynamic nature of operating and investing activities, the Company seeks to maintain flexibility in its finances through the availability of committed credit lines.
140
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
21
The analysis of the Company’s financial liabilities classified according to its maturity, considering the remaining period until reaching the maturity as of the closing date of the period is as follows:
2015 Non-derivate financial liabilities
Carrying amount
Contractual cash flow
2 months or less
2 – 12 months 1 – 2 years
Over 2 years
Other financial
liabilities 151,679 (151,679) - (2,383) (2,364) (146,932)
Other accounts
payable (*) 863 (863) (863) - - -
Accounts payable
receivable 153,756 (153,756) (153,756) - - -
306,298 (306,298) (154,619) (2,383) (2,364) (146,932)
(*) It does not include statutory assets nor social benefits
2014 Non-derivate financial liabilities
Carrying amount
Contractual cash flow
2 months or less
2 – 12 months 1 – 2 years
Over 2 years
Other financial
liabilities 126,480 (126,480) - (31) (17) (126,432)
Other accounts
payable 740 (740) (740) -
Accounts payable
receivable 116,140 (116,140) (116,140) - - -
243,360 (243,360) (116,880) (31) (17) (126,432)
(*) It does not include statutory assets nor social benefits
Management monitors the risk associated with each of the above mentioned categories, which include maintaining good relationships with financial entities in order to assure sufficient credit lines at all times, as well as covering working capital with cash flows coming from operating activities. As of December 31, 2015, the Company has cash amounting to S/ 14,955 thousand (S/ 261,740 thousand as of December 31, 2014), also other means cash equivalent to S/ 949,236 thousand in available credit lines (S/ 1,173,575 thousand as for December 31, 2014). In opinion of management, there is no significant liquidity risk as of December 31, 2015 and 2014.
F. Capital management
The Company’s objective in managing capital is to safeguard the capacity to continue as a going concern and provide the expected return to stockholders and respective benefits to stakeholders, as well as maintaining an optimum structure to reduce capital cost.
The Company may adjust the amount of dividends paid to stockholders; issue new shares; or sell assets to reduce debt to maintain or adjust the capital structure.
141
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
22
The Company monitors its capital based on the total debt-to-capital ratio. This ratio is determined by dividing the net debt by the total capital. The net debt is calculated as the total indebtedness of the Company less cash and cash equivalents. Total capital corresponds to net equity as shown in the statement of financial position. Currently, the Company holds very low debt levels, however, the strategy is taking advantage of the low cost to access to an additional lease to finance its growth and sustainability projects of the mining unit in good times. Debt-capital ratios as of December 31, were as follows:
In thousands of soles 2015 2014
Total liabilities 769,964 454,350 Less: cash 14,955 261,740 Net debt 755,099 192,610
Total net equity 1,794,707 2,475,350
Debt-to-capital ratio 0.42 0.1
G. Fair value estimate Management estimates that the carrying amounts of current financial instruments as of December 31, 2015 and 2014 do not differ significantly from their fair values due to their short-term maturities; therefore, disclosure of such information is not relevant for adequate interpretation of the Company’s financial position as of those dates, and in the case of non-current financial obligations, because they accrue interest at market rates. Accounting policies on recognition and valuation of these items are disclosed in the related accounting policies (note 3).
5. Cash
As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Bank balances 14,955 261,740
14,955 261,740
As of December 31, 2015, the Company holds checking accounts at high-quality local and foreign financial institutions in local and foreign currency for approximately S/ 5,759 thousand and US$ 2,694 thousand, respectively (S/ 11,136 thousand and US$ 84,191 thousand , respectively as of December 31, 2014). Such funds have free withdrawal option and bear interest at market rates. According to the information provided by Apoyo & Asociados Internacionales S.A.C., the quality of the financial institutions in which the Company deposits its cash is classified as follows: In thousands of soles 2015 2014 Bank deposits AA - classification 628 178,354 A + classification 11,197 76,494 A classification 3,130 6,892
14,955 261,740
142
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
23
6. Trade Accounts Receivable As of December 31, this caption comprises the following: In thousands of soles 2015 2014
Accounts receivable: Aurubis AG (Alemania) 6,235 22,666 LS-Nikko Copper Inc. (Corea) 8,073 21,063 Pan Pacific Copper Co. Ltd. (Japan) 7,187 (172) Trafigura Pte Ltd 7,697 7,294 Glencore Peru SAC 9,543 - Aurubis Bulgaria 8,045 - Louis Dreyfus Perú S.A. - 43,498
46,780 94,349
Embedded derivative (25,841) (27,448)
Total trade accounts receivable 20,939 66,901
A. Trade accounts receivable and other accounts receivable have current maturity, do not
have specific guarantees, and do not bear interest.
B. As per management’s analysis, an account receivable is considered as impaired when it has been classified as uncollectible and has, therefore, been presented in the provision for doubtful accounts. As of December 31, 2015 and 2014, the Company’s management considers that there are no uncollectible accounts since its main clients have a recognized prestige in the international market and do not present financial problems at closing period. Likewise, even though some trade accounts receivable are aged between 90 and 180 days, this is due to the contractual condition established between the Company and its clients concerning the dates of interim and final settlement in accordance with shipment date and arrival of the sold product.
In thousands of soles 2015 2014
Aging of accounts receivable: Up to 60 days 16,730 61,520 60 - 120 days 16,118 15,141 Over 120 days 13,932 17,688
46,780 94,349
Classification of debtors: Group 1 17,589 43,498 Group 2 29,191 50,851
46,780 94,349
Group 1: new clients (less than 6 months as clients). Group 2: existing clients (more than 6 months) with no payment failures in the past.
143
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
24
7. Accounts Receivable and Payable to Related Parties As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Other accounts receivable (note 8) Minera Gold Fields Perú S.A. - 84 Gold Fields Ghana Limited 13 11 Compañía Transmisora Nor Peruana S.R.L. 25,211 25,016
25,224 25,111
Other accounts payable (note 14) GFL Group Services Pty Ltd. 268 97 Gold Fields Exploration 8 53 Other minor - 3
276 153
Gold Fields Ghana Limited Accounts payable correspond mainly to reimbursements of costs and expenses incurred on behalf of the Company for personnel training. Compañía Transmisora Nor Peruana S.R.L. Accounts payable correspond to advances and loans provided for the constructions of the Electricity Transmission Line. GFL Group Services (Pty) Ltd. - Accounts payable correspond to reimbursements of costs and expenses incurred on behalf of the Company to provide logistics and administrative support for the Cerro Corona Mining Project. Gold Fields Exploration Accounts payable correspond to reimbursement of personnel insurance expenses incurred on behalf of the Company. Balances of these accounts have current maturity, do not accrue interest and do not have specific guarantees. Members of the Board and Key Management - Salaries paid to members of the Board and key management during 2015 and 2014 amounted to S/ 25,907 thousand and S/ 18,519 thousand, respectively. As of December 31, 2015 and 2014, there are no other related party transactions.
144
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
25
8. Other Accounts Receivable As of December 31, this caption comprises the following: In thousands of soles 2015 2014
Investment Certificates (a) 9,847 14,986 Advances from suppliers 4,608 2,145 Various 5,254 4,576 Tax credit 14,652 - Advance payments and ITAN 17,438 883
51,799 22,590
Related parties (note 7) 25,224 25,111
77,023 47,701
(a) According to Law 29230 - Law that Promotes Regional and Local Public Investment with
the participation of the Private Sector, the Company has approved valuations that entitle to Certificates of Regional and Local Public Investment (CIPRL, for their Spanish acronym) that are enforceable in favor of the Company for the amount of S/ 9,847 and coming from the construction of Bambamarca market completed on December, 2014.
9. Inventory As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Finished products 30,098 18,470 Concentrated work-in-progress 2,366 1,185 Various supplies 43,157 39,308 Inventory in transit 613 812 Long-term work-in-process 108,400 112,885 Total inventories 184,634 172,660
Current (76,234) (59,775)
Total non-current 108,400 112,885
During 2015, the Company has evaluated the impairment of supplies derecognizing the items completely impaired. As of December 31, 2015, the Company considers that no provision for impairment is required. The effect on the results for the years 2015 and 2014 amounts to S/ 2,143 thousand and S/ 168 thousand, respectively.
10. Investments As of December 31, this caption comprises:
In thousands of soles Type of
Investments Relation interest Interest Equity 2015 2014
Hualgayoc Holding S.A.C. Subsidiary
Common
shares 99.99% 2,994 23,900 23,887
Consorcio Transportadora
Salaverry Consorcio Interest 5.00% 3,694 - 184
23,900 24,071
During 2015, the Company withdrawn its investment of the Consorcio Transportadora Salaverry Company amounting to S/ 184 thousand
145
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
26
11. Property, Plant and Equipment The movement in cost and corresponding accumulated depreciation of property, plant and equipment for the years ended December 31 is as follows:
Balances as of Deductions Transfers Balances as of In thousands of soles 12.31.2014 Additions and adjustment (note 12) 12.31.2015 Cost Land 35,091 - - - 35,091 Buildings 221,279 - - 29,411 250,690 Infrastructure 1,241,217 - (8,305) 260,849 1,493,761 Furniture and fixtures 5,621 - - - 5,621 Vehicles 3,088 - (457) 302 2,933 Various equipment 40,312 - (8) 26,212 66,516 IT equipment 7,478 - (5,197) 968 3,249 Building 725,800 - (30,928) 37,902 732,774 Financing costs 175,291 - - - 175,291 Vehicles - Leasing 94 7,560 - - 7,654 Work-in-progress 159,312 211,461 (6,342) (291,888) 72,543
2,614,583 219,021 (51,237) 63,756 2,846,123
Accumulated depreciation Buildings 79,754 34,484 - - 114,238 Infrastructure 321,404 115,832 - - 437,236 Furniture and fixtures 3,499 565 - - 4,064 Vehicles 2,959 102 (457) - 2,604 Various equipment 12,976 7,557 (3) - 20,530 IT equipment 6,644 491 (5,197) - 1,938 Building 263,315 56,818 (10,988) - 309,145 Financing costs 65,946 12,132 - - 78,078 Vehicles - Leasing 57 932 - - 989
756,554 228,913 (16,645) - 968,822
Net cost 1,858,029 1,877,301
Balances as of Deductions Balances as of In thousands of soles 12.31.2013 Additions & adjustment Transfers 12.31.2014 Cost Land 30,550 - - 4,541 35,091 Buildings 209,462 - - 11,817 221,279 Infrastructure 1,030,227 - (8,758) 219,748 1,241,217 Furniture and fixtures 5,805 - (195) 11 5,621 Vehicles 3,166 - (78) - 3,088 Various equipment 37,882 - - 2,430 40,312 IT equipment 7,063 - (5) 420 7,478 Building 695,355 - - 30,445 725,800 Financing costs 175,291 - - - 175,291 Vehicles – Leasing 94 - - - 94 Work-in-progress 296,824 144,883 (12,879) (269,516) 159,312
2,491,719 144,883 (21,915) (104) 2,614,583
Accumulated depreciation Buildings 63,923 15,831 - - 79,754 Infrastructure 229,864 92,708 (1,168) - 321,404 Furniture and fixtures 2,982 579 (62) 3,499 Vehicles 2,947 90 (78) - 2,959 Various equipment 9,576 3,400 - - 12,976 IT equipment 6,057 592 (5) - 6,644 Building 210,900 52,415 - - 263,315 Financing costs 53,627 12,319 - - 65,946 Vehicles – Leasing 33 24 - - 57
579,909 177,958 (1,313) - 756,554
Net cost 1,911,810 1,858,029
146
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
27
As of December 31, 2015 and 2014, work-in-progress mainly comprises investments on the tailing dam. During 2015, fixed assets settled as work-in-progress were capitalized, including: Tailing dam facility amounting to S/ 99,547 thousand; Waste storage facility amounting to S/ 41,591 thousand; crusher amounting to S/ 17,229 thousand; 3 camp modules and substations at Cerro Corona amounting to S/ 14,209 thousand, water treatment plant amounting to S/ 11,397, among others.
The depreciation expense for years ended December 31, 2015 and 2014 has been fully charged to the cost of production.
12. Intangible Assets
Cost and corresponding accumulated amortization activity of intangible assets for the years ended December 31, is the following:
Balances as of Deductions Balances as of In thousands of soles 12.31.2014 Additions and adjustment Transfers 12.31.2015
Cost Mining rights 7,036 - (26) - 7,010 Development and pre-operating expenses
484,692 - - 14,320 499,012
Remediation and mine closure assets
113,543 - - 113,543
Computer software 10,250 - - 642 10,892 Deferred stripping costs 86,270 - - - 86,270 Research and projects expenses
88,218 1,047 - (78,718) 10,547
Yanacocha Agreement- 3N road
26,467 - - - 26,467
Others 325 - - - 325 816,801 1,047 (26) (63,756) 754,066
Mining rights 2,350 496 (6) - 2,840 Developments and pre-operative expenses 183,606 36,533 - - 220,139 Remediation and mine closure assets
27,478 9,326 - - 36,804
Computer software 9,496 603 - - 10,099 Deferred stripping costs 32,433 5,973 - - 38,406 Yanacocha Agreement- 3N road
7,107 2,148 - - 9,255
Others 123 22 - - 145
262,593 55,101 (6) - 317,688
554,208 436,378
147
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
28
Balances as of Balances as of In thousands of soles 12.31.2013 Additions Transfers 12.31.2014 Year 2014: Cost Mining rights 7,036 - - 7,036 Development and pre-operating expenses 484,692 - - 484,692
Remediation and mine closure assets 67,091 46,452 - 113,543
Computer software 9,968 - 282 10,250 Deferred stripping costs 86,270 - - 86,270 Research and projects expenses 85,783 2,613 (178) 88,218
Yanacocha Agreement- 3N road 26,467 - - 26,467
Others 325 - - 325
767,632 49,065 104 816,801
Accumulated amortization Mining rights 1,843 507 - 2,350 Pre-operative and development expenses 148,627 34,979 - 183,606
Remediation and mine closure assets 22,537 4,941 - 27,478
Computer software 8,971 525 - 9,496 Deferred stripping costs 26,368 6,065 - 32,433 Yanacocha Agreement- 3N road 4,926 2,181 - 7,107
Others 99 24 - 123
213,371 49,222 - 262,593
554,261 554,208
Amortization expense for the years ended December 31, 2015 and 2014 has been fully allocated to cost of production. During 2015, the studies and advisories related to the construction of tailings dam and waste storage facility were transferred to property, plant and equipment item, amounting to S/ 78,076 thousand.
13. Trade Accounts Payable As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Invoices payable 152,207 111,794 Others 1,549 4,346
153,756 116,140
The trade accounts payable result mainly from the rendering of services of the Company's operating activity, as well as the process of expansion of the mine. Such accounts payable are expressed in local and foreign currency, have current maturities, do not accrue interest and no guarantees have been given for these obligations. Bills payable include provisions for documents that have not yet physically arrived but have the support for their registration. As of December 31, 2015, they amount to S/ 110,557 thousand (S/ 80,692 thousand as of December 31, 2014). The carrying amount of trade accounts payable due to its maturity is similar to their fair value.
148
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
29
14. Other Accounts Payable As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Salaries, bonuses, vacations and profit sharing payable 42,245 51,793 VAT payable - 2,343 Royalties, IEM and Osinergmin 4,406 5,030 Complementary Fund 1,776 7 Income Tax withholding 1,237 1,897 Other Taxes 1,043 1,162 Fringe benefits provisions 673 686 Various 587 587 Various accounts payable to related companies (note 7) 276 153
52,243 63,658
149
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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150
INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
31
As of December 31, 2015, the Company did not comply with the third finance commitment requested in the Loan Agreement; this situation lead the non-current finance obligation amounting to S/ 143,220 to be reclassified to current liability. This non-compliance is mainly due to accounting adjustments in the deferred income tax and unfavorable effect of the sol depreciation with respect to the U.S. dollar.
On March 2, the Company signed an amendment the loan contract held with its financial creditors which renounced to their rights and benefits resulting from non-compliance of the third commitment, despite the amendment received from the lending parts and the fact that currently there is no legal or implicit obligation to settle the debt within the next 12 months, IAS 1,”Presentation of the Financial Statements”, requires that the finance obligation is disclosed as a current liability.
16. Provisions
As of December 31, this caption comprises the following:
In thousands of soles
Provision for environmental
remediation Share based
payment
Long-term incentive plan
Total Balance as of January 01, 2014 88,710 266 - 88,976 Updating of the Mine Closure Plan
46,451 - - 46,451
Additions during the period - 5,557 3,665 9,222 Finance cost 9,910 - 9,910 Balance as of December 31, 2014
145,071 5,823 3,665 154,559
Updating of the Mine Closure Plan
- - - -
Additions (deductions) done during the period
- (5,306) 3,160 (2,146)
Finance cost 22,151 - - 22,151
Balance as of December 31, 2015
167,222 517 6,825 174,564
A. Provision for environmental remediation
On October 14, 2004, Law 28090 became effective to regulate obligations and procedures that holders of mining activities must comply regarding the preparation, presentation, and implementation of the Mine Closure Plan as well as implementation of the corresponding environmental guarantees. This Law established that holders of operating mining units shall present to competent authorities the Mine Closure Plan within 6 months beginning on the effective date of the Law. However, on May 8, 2005 an amendment was approved ruling the holder of operating mining units shall present to competent authorities the Mine Closure Plan within one year after the effective issuance date of the implementation rules of such Law. Regulation for Mine Closure Plan was approved on August 15, 2005, through Supreme Decree 033-2005-EM. In conformity with this obligation, the Company submitted to the Ministry of Energy and Mines the Environmental Impact Study of Mina Cerro Corona, on December 4, 2006, which was approved on June 4, 2008 by means of RD 131-2008-MEM/AAM. In compliance with the implementation rules, the Company has provided the Ministry of Energy and Mines with a letter of guarantee of US$ 19.7 million, issued by Scotiabank Perú S.A.A., to guarantee the fulfillment of the Mine Closure Plan, which expires in January 2015. It was renewed through letter of guarantee of US$ 25.5 million issued by Banco de Crédito del Perú, maturing in January 2016.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
32
On October 14, 2014, the Ministry of Energy and Mines, by means of RD 322-2014-MEM/DGAAM approved the fourth modification of the Cerro Corona Mine Closure Mine, which is currently valid, which estimate closing cost was calculated for the life of the mine, considering all the approved components in the EIA, this represents a major provision for environmental remediation for all the Cerro Corona components amounting to S/ 46,451 thousand.
In order to fulfill the requirements of the Implementation rules, as of December 31, 2015, the Company has determined that the provision for mine closure of the mining unit amounts to S/ 167,222 (S/ 145,070 thousand as of December 31, 2014).
B. Long-term incentive plan
In 2014, the Parent Company implemented a variable long-term compensation plan based on the results of Gold Fields Limited (GFL) for certain officers of the corporation. The plan seeks to attract, retain, motivate and reward participating employees with outstanding performance and that contribute to sustainable long-term financial results, to boost stockholder value.
Major features of such Plan are the following:
The period to evaluate is 3 years; Two corporate performance conditions for the period to be evaluated must be complied: Cash
Flow Margin and Total Return to Stockholders; The long-term incentive will be offered to employees once a year, in March, and will be paid
according to the performance of these indicators; The incentive is calculated based on a percentage of annual salary, position level and individual
performance; The incentive is allocated and paid in local currency;
This long-term plan replaces the previous scheme based on shares, which will expire in 2016.
17. Deferred Income Tax, Liability
The composition and activity of this caption for the years 2015 and 2014 is as follows:
In thousands of soles As of December
31, 2014
Credit (debit) to the
income statement As of December
31, 2015 Deferred assets Depreciation of property, plant, and equipment 237,059 152,109 389,168 Provision for environmental remediation 47,664 21,621 69,285 Share-based compensation plan 4,189 474 4,663 Amortization of intangible assets 16,439 77,671 94,110 Unpaid mining royalties with provisions 5,259 (384) 4,875 Other temporary items 821 48 869
Total deferred assets 311,431 251,539 562,970
Deferred liabilities Amortization of development and pre-operating expenses (181,527) 18,230 (163,297) Development and pre-operating expenses (199,935) (14,937) (214,872) Properties, plant and equipment (90,625) (1,112,369) (1,202,994) Embedded derivative (27,448) (8,032) (35,480)
Total deferred liabilities (499,535) (1,117,108) (1,616,643)
Taxable base (188,104) (1,053,673)
Deferred income tax liability (30%) (56,431) (316,102)
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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33
Credit to results for deferred income tax for year ended December 31 was as follows:
In thousands of soles 2015 2014
Total at end of year 316,102 56,431 Total at beginning of year (56,431) (97,825)
Income (expenses) of the year: 259,671 (41,394)
18. Issued Capital
As of December 31, 2015 and 2011, authorized, subscribed and paid-in capital, according to the Company’s bylaws and amendments is represented by 1,247,502,619 common shares with a par value of S/ 0.91 each. Balance of this item includes S/ 3,050 thousand, related to the capital modification at constant currency. At General Stockholders' Meeting held on October 26, 2015, it was agreed to reduce the capital stock of the Company by S/ 112,275 thousand through the refund to the shareholders of the amortized par value, in accordance with article 216.1 of the Companies Act, thus the social capital amount decreased from S/ 1,247,503 thousand to S/ 1,135,227 thousand, respectively per 1,247,502,619 common shares.
As of December 31, 2015, the shareholding structure of the Company is as follows:
Percentage of individual interest in capital
Number of stockholders Total percentage of interest
Up to 0.02 107 0.04 0.03 to 0.4774 3 0.18 0.4775 to 99.0334 1 99.78
111 100.00
19. Investment Shares
As of December 31, 2015, this caption comprises 171,065,601 investment shares with a par value of S/ 0.91 (91/100 soles) per share. Balance of this caption includes S/ 427 thousand, related to the capital modification at constant currency. At General Stockholders' Meeting held on October 26, 2015, it was agreed to reduce the investment shares by S/ 15,396 thousand through the refund to the shareholders of the amortized par value, in accordance with article 216.1 of the Companies Act, thus the social capital amount decreases from S/ 171,066 thousand to S/ 155,670 thousand, represented by 171,065,601 common shares. Holders of investment shares are entitled to profit as provided in the Company’s by-laws and Law 27028 Law replacing labor shares by investment shares.
In accordance with applicable legislation, investment shares grant their holders the power to participate in dividend distribution, make contributions in order to maintain their existing proportion in the investment share account in case of capital increase by means of new contributions, increase the investment share account by means of capitalization of equity accounts, redeem their shares in any of the cases foreseen by the law, and participate in the distribution of the equity balance in the event of the Company’s liquidation. Investment shares do not confer access to the Board of Directors or the General Stockholders’ Meeting.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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34
As of December 31, 2015, the shareholding structure in the investment portfolio is the following:
Percentage of interest Number of Total percentage individual shareholding stockholders of shareholding
Up to 0.02 1,798 0.60 0.03 to 0.9694 8 1.63 0.9695 to 97.77 1 97.77
1,807 100.00
20. Other Capital Reserves
Pursuant to the Companies Act, the Company is required to allocate 10% of its net annual income to a legal reserve, after deducting accumulated losses. This allocation is required until the reserve equals the fifth part of paid-in capital. The legal reserve must be used to compensate losses in the absence of non-distributed earnings or non-restricted reserves, and must be restored with future earnings. Legal reserve may also be capitalized, but it shall be subsequently restored. As result of the capital reduction in 2015, the legal reserve reached the limit of the fifth part of the capital in accordance to the above mentioned Companies Act, transferring S/ 2,843 thousand to other additional reserve, thus the accumulated legal reserve amounts to S/ 227,656 thousand.
21. Other Equity Reserves
Share premium The debtor's balance of this caption represents a higher value paid in the acquisition of the Company's shares with relation to the par value, as shown below;
Type No. of shares Repurchase price In thousands of soles
Common (note 18) 9,362,360 S/. 2.48 23,219 Investment (note 19) 4,720,977 S/. 2.48 11,709 34,928
Less: Par value 14,083
Share premium 20,845
Additional reserve As result of the capital reduction in 2015 mentioned in note 20, S/ 2,843 thousand was transferred to additional reserves.
Share-based compensation payments As of December 31, 2015, this balance includes benefits to Company workers such as payments based on shares for S/ 57,140 thousand. The Parent Company operates a compensation plan based on Gold Fields Limited (GFL) shares for certain officers of the Company ("Gold Fields Limited 2005 Share Plan"): This plan establishes two methods of employee participation: SARS (“Performance Allocated Share Appreciation Rights Method”) and PVRS (“Performance Vesting Restricted Share Method”). The plan seeks to attract, retain, motivate and reward these employees aligning their interests with those of the holders of the Parent Company’s shares.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
35
Major features of such Plan are the following: Under PVRS and SARS, the participation options in the shares of GFL will be offered to the
employees once a year, during March; PVRS consists of options based on the results of GFL, which are granted at zero cost; Under PVRS, the option may be exercised in the third year of assignment; Under SARS, the option may be exercised in the third and sixth years of assignment.
22. Accumulated Results
As delegated to the Board of Directors by the General Stockholders’ Meeting, dated September 27, 2010 and based on the Company’s Dividend Policy current as of that date, the Company’s Board of Directors decided to distribute dividends in favor of holders of common and investment shares, based on the following detail:
Corporate
body
Date of
agreement Definition
Distributed
amount
Date of dividend
payment
Board of Directors
02.03.2015 On account of the profit of 2014 period
S/ 85,899,717.75 19.03.2015
General Stockholders’ Meeting
31.03.2015 On account of the accumulated profit of 2014 period
S/ 70,214,802.93 22.04.2015
Board of Directors
27.08.2015 On account of the accumulated profit of 2014 period
S/ 53,346,253.17 17.09.2015
Board of Directors
27.08.2015 On account of the accumulated profit of 2015 period
S/ 49,740,345.74 17.09.2015
At Board of Directors' Meeting held on February 25, 2016, period related to dividends distributed on September 17, 2015 has been modified, stating that the total amount of S/ 103,087 thousand is on account of accumulated profit as of December 31, 2014.
23. Workers’ Profit Sharing
In line with current legislation, the Company’s workers are entitled to a profit sharing plan to be computed at 8% of net income. This profit sharing is considered as deductible expenses for income-tax calculation purposes.
In year 2015, the Company determined current workers' profit sharing of S/ 30,755 thousand (S/ 42,717 thousand for 2014) which was recorded in the following items:
In thousands of soles 2015 2014
Cost of sales (note 26) 22,319 29,554 Administrative expenses (note 28) 1,193 1,640 Selling expenses (note 27) 357 504 Inventories 5,616 8,601 Fixed assets 1,270 2,418
30,755 42,717
As of December 31, 2015, the workers' profit sharing payable amounts to S/ 30,740 thousand (S/ 42,717 thousand as of December 31, 2014) which is included in 'remunerations and profit sharing payable'. The difference of S/ 14,286 thousand corresponds to advance for worker's participation paid during August.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
36
24. Tax Matters
A. The Company income tax returns for fiscal years 2011 through 2015 inclusive, are open to revision by Tax Authorities. Any major expenses exceeding the provisions made to cover the tax obligations will be charged to the results of the period in which those expenses are finally settled. It is the opinion of the Company’s management that, as a result of this review, no significant liabilities will affect the separate financial statements as of December 31, 2015 and 2014.
In accordance with current tax legislation, corporate income tax for 2015 and 2014 is calculated
on the basis of the net taxable profit at a rate of 28% and 30%, respectively. The Company holds a Legal Stability Agreement which guarantees a tax regimen of the income tax (30%) for a 10 years period, with a maturity term finishing in 2016 period. See note 1 (c).
The Company computed its taxable base for the year ended December 31, 2015, and determined that its income tax amounts to S/ 106,105 thousand (S/ 147,374 thousand for the year ended on December 31, 2014). Income tax expense comprises:
In thousands of soles 2015 2014
Current 106,105 147,375 Deferred (note 17) 259,671 (41,394)
365,776 105,981
On December 15, 2014, Law 30296 - Modification of tax rates on employment income and foreign sources income, was enacted, establishing the progressive reduction of income tax over the next five years. This law establishes the following rates: 28% for 2015 and 2016, 27% for 2017 and 2018 and 26% for 2019 onwards. This reduction will be offset with the increase in the rates applicable to distribution of profits, which as of December 31, 2014 is 4.1%; this will be increased to 6.8% for 2015 and 2016, to 8% for 2017 and 2018 and to 9.3% for 2019 onwards, unless the distribution is made in favor of other legal entities domiciled in Peru. As result, the Company has determined the effect due to changes in rate and considers that the reduction of the liability deferred tax is not significant for the financial statements, thus no adjustment has been done.
B. According to Legislative Decree 972, as from January 1, 2010, the tax-exemption for capital gains and interest from securities issued by legal entities incorporated or established in the country has been eliminated. Likewise, capital interest and gains from bonds issued by the Peruvian Government, as well as capital interest and gains from BCRP Certificates are not anymore exempt.
C. For income tax, sales tax, and excise tax purposes, the market value of the transactions between
related parties must be determined based on the transfer pricing standards. These standards define, among others, coverage, relationship criteria, as well as comparability analysis, methodology, adjustments and information. The standards establish that under certain conditions, companies are required to have a Technical Study Report supporting the calculation of transfer pricing with related parties. Likewise, this obligation is required for all transactions made from, towards or through territories with low or null taxation.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
37
The Company’s management considers that for income tax, sales tax and excise tax purposes, pricing regarding transactions such as those aforementioned has been made in accordance with tax legislation; consequently, no significant liabilities will arise, as of December 31, 2015. This includes considering the obligation, if any, of filing the annual informative transfer pricing declaration for fiscal year 2015 within the term and format indicated by SUNAT (Peruvian Tax Authorities).
D. The total or partial distribution of dividends, or other types of profit distribution, is subject to a 4.1% income tax withholding, except for the distribution of profits made in favor of domiciled legal entities. See A.
E. In 2005, a new tax named Temporary Tax on Net Assets (ITAN, for its Spanish acronym) was
established. The taxable base is the prior period adjusted net asset value less depreciations, amortizations, legal cash reserve, and specific provisions for credit risk. The tax rate is 0.4% for years 2015 and 2014 and is applied to the amount of net assets exceeding S/ 1 million. It may be paid in cash or in nine consecutive monthly installments. The paid amount can be used as a credit against payments on account of Income Tax General Regime for taxable periods from March to December of the fiscal period for which the tax was paid until maturity date of each of the payments on account, and as a credit for regularization payments of income tax of corresponding taxable period. The Bank calculated the ITAN for year 2015 for S/ 12,093 thousand (S/ 11,984 thousand for 2014).
F. Likewise, technical assistance provided by entities not domiciled in the country is subject to a 15%
income tax withholding, regardless of the place where the service is rendered and provided that income tax law requirements are met.
G. The reconciliation of the tax rate and the effective tax rate is as follows:
2015 2014
In thousands of soles % %
Profit before income tax 73,207 100.00 298,322 100.00 Income tax (theoretical rate) 21,962 30.00 89,497 30.00 Tax effect on additions and deductions: Permanent differences 343,814 251.52 16,484 5.53
365,776 281.52 105,981 35.53
H. Mining royalties and special tax on mining
On September 29, 2011, the Peruvian government amended the mining royalty system, effective since October 1, 2011. According to this amendment, mining royalties for metallic and non-metallic mining activities of holders or assignees of mining concessions shall be quarterly settle. It shall be determined using the higher of: (i) the amount obtained by applying a calculation ladder of the marginal rates to be applied on the quarterly operating profit for certain items established in the regulation; and (ii) 1% of net sale of the quarter. These mining royalty payments are deductible for income tax determination purposes of the year in which payments are made. As of December 31, 2015, the Company’s expenses for mining royalties and special tax on mining amounts to S/ 9,737 thousand and S/ 7,498 thousand, respectively (S/ 11,788 thousand and S/ 11,625 thousand as of December 31, 2014).
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
38
25. Income from ordinary activities As of December 31, this caption comprises the following:
In thousands of soles 2015 2014 Sale of concentrates: In the country 25,478 167,850 Aboard 993,216 924,991 1,018,694 1,092,841 Price adjustment (*) (84,782) (38,267)
933,912 1,054,574
(*) Increase in price adjustment is basically generated for the decrease of the price during the period.
26. Cost of Sales As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Beginning inventory of finished products 114,070 100,828 Beginning inventory of work-in-process 18,470 20,270 Production cost (*) 700,719 615,510 Ending inventory of work-in-process (110,767) (114,070) Ending inventory of finished products (30,097) (18,470)
(692,395) 604,068
(*) Production cost mainly comprises the following: In thousands of soles 2015 2014
Extraction and processing costs 277,634 271,658 Depreciation 228,913 177,958 Amortization 49,128 44,280 Costs for safety, environment and community affairs 24,162 30,691 Workers’ profit sharing (note 23) 22,319 29,554 Other (**) 98,563 61,369
700,719 615,510
(**) Mainly includes deferred stripping costs, logistics, storage, information technology,
communications, operating support areas and sundry provisions.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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39
27. Selling Expenses As of December 31, this caption comprises the following: In thousands of soles 2015 2014
Third party services 38,429 37,743
Personnel expenses 1,261 1,004 Workers’ profit sharing (note 23) 357 504 Taxes 160 128 Various charges for operations 101 4,878 Others 224 548
40,532 44,805
Third party services mainly include transportation for the sale of concentrates, as well as shipping expenses.
28. Administrative Expenses As of December 31, this caption comprises the following: In thousands of soles 2015 2014
Third party services 6,764 17,846 Personnel expenses 4,692 7,707 Workers’ profit sharing (note23) 1,193 1,640 Taxes 137 2,040 Others 183 6,101
12,969 35,334
The third party services mainly include the provision for the compensation plan, insurance and affiliations.
29. Other Operating Income (Expenses)
As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Other operative expenses: Acquisition of Fuel (30,858) (28,414) Royalties and Special Tax on Mining (17,294) (23,413) Socio-environmental management (27,069) (20,248) Net cost assumed of property, plant, and equipment (a) (47,386) (7,723) Contributions for mining sector regulation (3,512) (3,394) Mining retirement fund (b) (10,916) - Other expenses (2,728) (1,734)
(139,763) (84,926)
Other operating income Sale of fuel 30,590 28,433 Sale of fixed and intangible assets 14,365 - Other income 3,888 2,141
48,843 30,574
(90,920) (54,352)
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
40
(a) In 2015, fixed assets have been derecognized due to sale and obsolescence amounting to S/ 28,164 thousand and S/ 19,222 thousand have been sent to unviable projects.
(b) On December the mining retirement fund related to years 2012, 2013 and 214 was recognized
and paid amounting to S/ 9,147 thousand and for 2015 S/ 1,769 thousand was provided. 30. Net Finance
As of December 31, this caption comprises the following:
In thousands of soles 2015 2014
Bank interest 568 391
Loan interest and expenses (6,861) (6,650) Other finance charges (9,955) (4,685) (16,816) (11,335) Gain on exchange 53,585 9,139 Loss on exchange (61,226) (15,888)
(7,641) (6,749)
31. Derivative Financial Instruments
A. Embedded derivative for price variations in concentrate sales contracts as explained in note 3, risk exposure for gold and copper prices variation is considered as an embedded derivative and is separated from the commercial agreement.
As of December 31, 2015:
Quotations in thousands US$ S/.
Metal Quantity Unit Quotations period 2015 Provisional Future
Fair value
Copper 4,045 Mts Jan. - April 20,723 20,310 (19,600) Gold 23,377 Oz Jan. - April 27,425 27,232 (6,241)
(25,841)
As of December 31, 2014:
Quotations in thousands US$ S/.
Metal Quantity Unit Quotations period 2014 Provisional Future
Fair value
Copper 4,297 Mts Jan. - April 22,012 21,573 (12,069) Gold 24,831 Oz Jan. - April 29,130 28,926 (15,379)
(27,448)
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
41
32. Mineral Reserves (Unaudited) As of December 31, this caption comprises the following:
2015 2014
Proven sulphide ore reserve: Copper (M lbs) 527 631 Copper (converted to gold equivalent in 000 oz) 1,216 1,457 Gold (000 oz) 1,527 1,825 Total gold equivalent in 000 oz 2,743 3,282 Probable sulphide ore reserve: Copper (M lbs) 96 80 Copper (converted to gold equivalent in 000 oz) 221 185 Gold (000 oz) 230 200 Total gold equivalent in 000 oz 451 385 Total proven and probable sulphide ore reserve:
Gold equivalent in 000 oz 3,194 3,667
000 oz = thousands of ounces M lbs = millions of pounds
33. Fair Value
The Company and its Subsidiary measure their financial assets and liabilities at fair value except for cash and cash equivalents, trade accounts receivable and payable, other accounts receivable and payable, and other short-term financial obligations (loans). The Company considers that their face values are similar to their fair values because of their short-term maturity.
The fair value of other long-term finance liabilities (loan) for revelation is estimated discounting the future contractual cash flow to the current interest rate in the market and is available for the Company for similar finance instruments.
The fair value of the finance liabilities and assets together with the carrying amount included in the statement of financial position is detailed as follows:
In thousands of soles Note Accounting
value Fair value Non-current liabilities: Cash 5 14,955 14,955 Trade accounts receivable 6 20,939 20,939 Other Accounts Receivable 8 77,023 77,023
112,917 112,917 Current financial liabilities: Trade accounts payable 13 153,756 153,756 Other accounts payable 14 52,243 52,243 Other financial liabilities (short-term) 15 145,603 2,383
351,602 208,382 Non-current financial liabilities: Other financial liabilities (long-term) 15 6,076 149,296
6,076 149,296
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
(Translation of a Report originally issued in Spanish) GOLD FIELDS LA CIMA S.A. Notes to the Separate Financial Statements December 31, 2015 and 2014
42
Financial instruments measured at fair value The table below explains the measurement of the Company’s financial instruments and financial liabilities. Fair values measurements are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: The different levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1
that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs are unobservable inputs for the asset or liability.
As of 31.12.2015
Level 1 Level 2 Level 3 Total
Other financial liabilities (long-term) - 6,076 - 6,076
The Company determines the Level 2 fair value using a discounted cash flow technique with market discount rates.
34. Subsequent Events On January 2016, the Company received a loan of US$ 40,000,000 from Bank of Nova Scotia which main purpose is the usage on working capital needs.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
Annexes10
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ExecutiveVicepresident
Ernesto Balarezo
Legal VPJuan José Granda
CorporateDevelopment VPAlberto Cárdenas
Corporate Affairs& SustainableDevelop. VP
MiguelIncháustegui
OperationsVP
Manuel Díaz
HumanResources VP
VerónicaValderrama
Finance VPJorge Redhead
OperationsManager
Ronald Diaz
LegalSub-managerPatricia Kosa
LegalSub-manager
of Regulatory andCompliance
Inés Nuñovero
Legal & LandSub-managerErnesto Reyes
StrategicPlanning ChiefCarsten Wong
SustainableDevelop.
Corp. ManagerJaime Gálvez
CommunityRelationsManager
Jorge LuisMontero
Communication& PR Corp.Manager
Rafael Sáenz
SocialProjects
SuperintendentLuis León
ProjectsManager
OperationsAlan Angles
Mine ManagerEnrique Paredes
SpecialProjects Manager
FrancoisSwanepoel
SecuritySub-managerJorge Zapata
MineralResourcesManager
Eddie García
OccupationalHealth and
SafetyManager
Luis Apaza
EnvironmentalCorp. Manager
Luis AlbertoSánchez
Tailings andWater Resources
ManagerJavier Gutiérrez
ProcessManager
Pedro Paucar
Geology &ExplorationManager
Paul Gómez
Compensations& HR ManagerSusana Carlin
HumanResourcesManager -
Cerro CoronaPaul Schmidt
TalentSub-manager
Daniela Martinez
WarehouseManager
Ernesto Silva
Contracts& Purchasing
ManagerJorge García
OperationManager-Salaverry
Jorge Balanda
AccountingManager
Cecilia Via
ITSub-managerRenzo Cobos
InternalController
CeciliaVásquez
FinanceManagerRafael
Caballero
10.1 Gold Fields La Cima S.A. Organizational Chart
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
ExecutiveVicepresident
Ernesto Balarezo
Legal VPJuan José Granda
CorporateDevelopment VPAlberto Cárdenas
Corporate Affairs& SustainableDevelop. VP
MiguelIncháustegui
OperationsVP
Manuel Díaz
HumanResources VP
VerónicaValderrama
Finance VPJorge Redhead
OperationsManager
Ronald Diaz
LegalSub-managerPatricia Kosa
LegalSub-manager
of Regulatory andCompliance
Inés Nuñovero
Legal & LandSub-managerErnesto Reyes
StrategicPlanning ChiefCarsten Wong
SustainableDevelop.
Corp. ManagerJaime Gálvez
CommunityRelationsManager
Jorge LuisMontero
Communication& PR Corp.Manager
Rafael Sáenz
SocialProjects
SuperintendentLuis León
ProjectsManager
OperationsAlan Angles
Mine ManagerEnrique Paredes
SpecialProjects Manager
FrancoisSwanepoel
SecuritySub-managerJorge Zapata
MineralResourcesManager
Eddie García
OccupationalHealth and
SafetyManager
Luis Apaza
EnvironmentalCorp. Manager
Luis AlbertoSánchez
Tailings andWater Resources
ManagerJavier Gutiérrez
ProcessManager
Pedro Paucar
Geology &ExplorationManager
Paul Gómez
Compensations& HR ManagerSusana Carlin
HumanResourcesManager -
Cerro CoronaPaul Schmidt
TalentSub-manager
Daniela Martinez
WarehouseManager
Ernesto Silva
Contracts& Purchasing
ManagerJorge García
OperationManager-Salaverry
Jorge Balanda
AccountingManager
Cecilia Via
ITSub-managerRenzo Cobos
InternalController
CeciliaVásquez
FinanceManagerRafael
Caballero
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INTEGRATED REPORT 2015Gold Fields La Cima S.A.
GoldFieldsLaCimaensurescompliancewithPeruvianregulations,corporatestandardsandcommitmentsundertakeninitsEnvironmentalImpactAssessment(EIA).
Therefore,LaCimahasprocessedandobtainedlicensesandpermitstoruntheconstructionandoperationoftheCerroCoronaminingunit.LicensesandmostrelevantpermissionsobtainedbyLaCimauptoDecember31,2015arethefollowing:
A. Environmental Impact Assessment and its amendments
• EnvironmentalImpactAssessment(EIA)approvalawardedbytheMinistryofEnergyandMinesbyResolutionNo.514-2005-MEM/AAMdatedDecember2,2005.
• AmendmentapprovalofEIAgrantedbytheMinistryofEnergyandMinesbyResolutionNo.276-2007-MEM/AAMdatedSeptember5,2007.
• SecondAmendmentapprovalofEIAbytheMinistryofEnergyandMinesbyResolutionNo.142-2008-MEM/AAMdatedJune13,2008.
• ThirdamendmentapprovalofEIAgrantedbytheMinistryofEnergyandMinesbyResolutionNo.021-2010-MEM/AAMdatedJanuary20,2010.
• FourthamendmentapprovalofEIAgrantedbytheMinistryofEnergyandMinesbyResolutionN°287-2011-MEM/AAMdatedSeptember16,2011.
• FifthAmendmentapprovalofEIAgrantedbytheMinistryofEnergyandMinesbyResolutionNo.075-2012-MEM-AAMdatedMarch12,2012.
• SixthamendmentapprovalofEIAgrantedbytheMinistryofEnergyandMinesbyResolutionN°313-2013-MEM-AAMdatedAugust13,2013.
• Approvalofthetechnicalsupportingreportfor“Crushing,Grinding,OreHaulingand
10.2 Licenses and permitsBlastingProcessesOptimizationofCerroCorona’sEnvironmentalImpact”grantedbytheMinistryofEnergyandMinesbyResolutionN°149-2014-MEM-DGAAMdatedMarch26,2014.
• Approvalofthetechnicalsupportingreportfor“ComponentsOptimizationandOperationalChanges”grantedbytheMinistryofEnergyandMinesbyResolutionN°627-2014-MEM-DGAAMdatedDecember29,2014.
• Approvalofthetechnicalsupportingreportofthe“Optimizationmanagementoforganicsoilandpebblescrusherreplacement”project,approvedbyDirectorialResolutionN°256-2015-MEM-DGAAMdatedJune24,2015.
• Approvalofthetechnicalsupportingreportofthe“Modificationandrelocationofauxiliaryfacilities”project,approvedbyDirectorialResolutionNo.479-2015-MEM-AAMdatedDecember14,2015.
B. Mine Closure Plan
• MineclosureplanapprovalofCerroCoronaMiningProjectgrantedbytheMinistryofEnergyandMinesbyResolutionNo.131-2008-MEM/AAMdatedJune4,2008.
• FristamendmentapprovaloftheMineClosurePlanofCerroCoronaMiningProjectgrantedbytheMinistryofEnergyandMinesbyResolution200-2010-MEM/AAMdatedJune9,2010.
• SecondamendmentapprovaloftheMineClosurePlanofCerroCoronaMiningProjectgrantedbytheMinistryofEnergyandMinesbyResolutionNo.184-2011-MEM-AAMdatedJune16,2011.
• ThirdamendmentapprovaloftheMineClosurePlanofCerroCoronaMiningProjectgrantedbytheMinistryofEnergyandMinesbyResolutionN°061-2013-MEM-
AAMdatedFebruary26,2013.
• FourthamendmentapprovaloftheMineClosurePlanofCerroCoronaMiningOperationgrantedbytheMinistryofEnergyandMinesbyResolutionN°522-2014-MEM/DGAAMdatedOctober14,2014.
C. Processing Plant
• PermitfortheprocessingplantandtailingsdamconstructionissuedbytheMinistryofEnergyandMinesbyresolutionNo.116-2006-MEM-DGM/VdatedJanuary31,2006.
• ConcessionapprovalandplantoperationinfavorofCerroCorona,authorizationby18,600tonsperday,byResolutionNo.1005-2008-MEM/DGMdatedAugust26,2008.
• ModificationapprovalofCerroCorona’sinstalledcapacityofbenefitplanttpexpandtheinstalledcapacityfrom18,600MT/dayto22.320MT/dayandauthorizingtheelementof11additionalcomponents,byResolutionNo.0239-2015-MEM-DGM/VdatedJune10,2015.
• Approvalofconstructionandoperationverificationofdam3,720MASLelevationofthetailingsdepositfromCerroCorona’sprocessingplant,byResolutionNo.278-2010-MEM-DGM/VdatedJuly13,2010.
• Approvalofconstructionandoperationverificationof3.740MASLelevationoftailingsdepositbootdamfromCerroCorona’sprocessingplant,byResolutionNo.246-2011-MEM-DGM/VdatedJuly19,2011.
• Approvalofconstructionandoperationverificationof3,746MASLfrombootdamoftailingsdepositofCerroCorona’sprocessingplant,byResolutionNo.367-2011-MEM-DGM/VdatedOctober7,2011.
• NewtimetableapprovalforthetailingsdamconstructionofCerroCoronabyResolutionNº
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367-2011-MEM.DGM/VdatedOctober7,2011.
• Approvalofconstructionandoperationverificationofdam3,747.5MASLelevationfrombootdamoftailingsdepositofCerroCorona’sprocessingplant,byResolutionNº196-2012-MEM-DGM/VdatedJune13,2012,andthereportNo.204-2012-MEM-DGM-DTM/PBfromthesamedate.
• Approvalofconstructionandoperationverificationof3,750MASLheightfrombootdamofCerroCorona’stailingsdepositprocessingplant,byResolutionNº311-2012-MEM-DGM/VdatedSeptember24,2012,andthereportNo.324-2012-MEM-DGM-DTM/PBdatedSeptember21,2012.
• Approvalofconstructionandoperationverificationof3,755MASLheightfrombootdamofCerroCorona’stailingsdepositofprocessingplant,byResolutionN°071-2013-MEM-DGM/VdatedSeptember19,2013,andthereportN°048-2013-MEM-DGM-DTM/PBdatedFebruary18,2013.
• Approvalofconstructionandoperationverificationof3,758MASLheightfrombootdamofCerroCorona’stailingsdepositofprocessingplant,byResolutionN°423-2013-MEM-DGM/VdatedNovember11,2013,andthereportN°348-2013-MEM-DGM-DTM/PBdatedNovember11,2013.
• Approvalofconstructioncompletionverificationofthetailingsdamto3.761MASLheightandauxiliaryfacilitiesofCerroCorona’sprocessingplant,byResolutionNo.0132-2014-MEM-DGM/VdatedApril11,2014.
• Approvalofconstructioncompletionverificationofthetailingsdamto3.764MASLheightofCerroCorona’sprocessingplant,byResolutionNo.0518-2014-MEM-DGM/VdatedNovember12,2014.
• Verificationapprovalof
constructioncompletionofthetailingsdamto3,766MASLofCerroCoronaconcessionandoperation,byResolutionN°057-2015-MEM-DGM/VdatedFebruary5,2015.
• Verificationapprovalofconstructioncompletionofthetailingsdamto3,768MASLofCerroCorona’sconcessionandoperation,byResolutionN°0557-2015-MEM-DGM/VdatedNovember16,2015.
• Approvaloftheopenpitplanminingof“CanteradeCuadratura”anditsrespectiveorganicsoildepositN°9(topsoildeposit)processingplantofCerroCoronabyResolutionN°0579-2014-MEM-DGM/VdatedDecember23,2014.
• ReductionapprovaloftheareagrantedtoCerroCoronain11,30hectaresanditsenlargementintwoareascalledNorthZonewith54,29hectaresandSouthZonewith149,66hectares,aswellastheextractionin“CanteradeCuadratura”andoperationoforganicsoildepositNo.2and(topsoildeposit),throughDirectorialResolutionN°058-2015-MEM/DGMdatedMarch10,2015.
• OperatinglicenseofLasGordaswastedeposit/UEACarolinaNo.1facilities,uptothehighestfillingpeakof3,910MASL,byResolutionN°0593-2015-MEM-DGM/V,datedDecember14,2015.
D. Mining Operation Certificate
• MiningoperationcertificateNo.058-2012-C,grantedbytheMinistryofEnergyandMinesonDecember13,2011.
• MiningoperationcertificateNo.058A-2012,grantedbytheMinistryofEnergyandMinesonMay9,2012.
• MiningoperationcertificateNo.058B-2012,grantedbytheMinistryofEnergyandMinesonOctober11,2012.
• MiningoperationcertificateNº039C-2013-C,grantedbytheMinistryofenergyandMineson
December3,2012.
• MiningoperationcertificateNo.001-2014-C,grantedbytheMinistryofEnergyandMinesonOctober14,2013.
• MiningoperationcertificateNo.005-2015-C,grantedbytheMinistryofEnergyandMinesonOctober23,2014.
• MiningOperationCertificateN°005-2016-C,grantedbytheMinistryofEnergyandMinesonOctober23,2015.
E. Licenses for water use granted by the Hydrological Resources Office of the National Institute of Natural Resources INRENA) by means of the following resolutions:
• CouncilResolutionNº751-2008-INRENA-IRHdatedAugust20,2008.
• CouncilResolutionNº800-2008-INRENA-IRHdatedSeptember03,2008.
• CouncilResolutionNº944-2008-INRENA-IRHdatedNovember05,2008.
F. License for underground water use with mining purposes, granted by the National Water Authority
• HeadOfficeResolutionNº0004-2011-ANAdatedJanuary10,2011.
G. Certificates of Archeological Vestiges Nonexistence, granted by the National Institute of Culture by means of the following resolutions:
• CIRA-2004-176datedAugust5,2004
• CIRA-2005-244datedOctober25,2005
• CIRA-2006-500datedMay8,2006
• CIRA-2007-176datedJune7,2007
• CIRA-2007-375datedOctober3,2007
• CIRA2008-113datedApril21,2008
• CIRA2008-149datedMay23,2008
• CIRA2012-108datedOctober
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15,2012
• CIRA2012-109datedOctober15,2012
• CIRA2012-110datedOctober15,2012
• CIRA2012-111datedOctober15,2012
• CIRA2012-112datedOctober15,2012
• CIRA2012-113datedOctober15,2012
• CIRA2012-114datedOctober15,2012
• CIRA2012-116datedOctober15,2012
• CIRA2012-117datedOctober15,2012
• CIRA2012-118datedOctober15,2012
• CIRA2012-119datedOctober15,2012
• CIRA2012-107datedOctober30,2012
• CIRA2012-115datedOctober30,2012
• CIRA2012-120datedOctober30,2012
• CIRA2012-121datedOctober30,2012
• CIRA2012-122datedOctober30,2012
• CIRA2012-123datedOctober30,2012
• CIRA2012-124datedOctober30,2012
• CIRA2012-125datedOctober30,2012
• CIRA2012-126datedOctober30,2012
• CIRA2012-127datedOctober30,2012
• CIRA2012-128datedOctober30,2012
• CIRA2012-129datedOctober30,2012
• CIRA2012-130datedOctober30,2012
• •CIRA2012-131datedOctober30,2012
• CIRA2012-132datedOctober30,2012
• CIRA2015-100datedJune18,2015.
• CIRA2015-281datedOctober21,2015.
• CIRA2015-282datedOctober21,2015.
• CIRA2015-283datedOctober21,2015.
H. Chemical Supplies and Regulated Products (IQPF)
• UsercertificateofRegulatedChemicalProducts,grantedbytheNationalPoliceofPeruNarcoticsDepartment,updatedbymeansofCertificateNo.20507828915-DIVICIQdatedSeptember17,2011.
• TherecordintheNationalRegistryforControlorRegulatedGoodswasgrantedbytheNationalSuperintendenceofCustomsandTaxAdministrationbymeansofCouncilresolutionN°3111190000903,renewedbyrecordN°6C2000-2015-R-0000954datedAugust28,2015.
I. Global Authorizations for Explosives Use and Operations Licenses
• Operationlicenseforone(01)“Special”TypeAmmunitionDump(Silo)No.2forstorageofmatrixemulsion,locatedatCerroCandela,districtandprovinceofHualgayoc,DepartmentofCajamarca;grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC),byResolutionNo.1151-2013-SUCAMEC-GEPPdatedSeptember2,2013.
• Operationlicenserenewalforone(01)“Special”TypeAmmunitionDump(Silo)grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°
2209-2013-SUCAMEC-GEPPdatedNovember21,2013.
• Operationlicenserenewalforthree(03)“Special”TypeAmmunitionDumps(Containers)N°1,2and3forthestorageofexplosivesandblastingaccessories,locatedatCerroCandela,districtandprovinceofHualgayoc,DepartmentofCajamarca;grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°2386-2013-SUCAMEC-GEPPdatedDecember5,2013.
• Operationlicenserenewalforthree(03)“Special”TypeAmmunitionDumps(Containers)N°4,5and6forthestorageofexplosivesandblastingaccessories,locatedatCerroCandela,districtandprovinceofHualgayoc,DepartmentofCajamarca;grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°2386-2013-SUCAMEC-GEPPdatedDecember5,2013.
• Operationlicenseforone(01)warehouseofammoniumnitrate,andlocatedatCerroCandela,districtandprovinceofHualgayoc,DepartmentofCajamarca;grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°2562-2013-SUCAMEC-GEPPdatedDecember17,2013.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthefirsthalfof2013,grantedbytheOfficeforManagementofExplosivesandPyrotechnicProductsofCivilUse(SUCAMEC),byResolutionN°131-2013-SUCAMEC-GEPPdatedJanuary11,2013.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthe
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secondhalfof2013,grantedbytheOfficeforManagementofExplosivesandPyrotechnicProductsofCivilUse(SUCAMEC),byResolutionNo.507-2013-SUCAMEC-GEPPdatedJuly5,2013.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthefirsthalfof2014,grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°2652-2013-SUCAMEC-GEPPdatedDecember23,2013.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthesecondhalfof2014grantedbytheSuperintendenceofSecurityServicesControlofWeapons,AmmunitionandExplosivesforcivilusebyResolutionN°1900-2014-SUCAMEC-GEPPdatedJune30,2014.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthefirsthalfof2015,grantedbytheSuperintendenceforSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionNo.3764-2014-SUCAMEC-GEPPdatedDecember23,2014.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthesecondhalfof2015grantedbytheSuperintendenceofSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionN°1069-2015-SUCAMEC-GEPPdatedMay27,2015.
• Globalauthorizationforthepurchaseanduseofexplosivesorrelatedmaterialsduringthefirsthalfofthe2016grantedbytheSuperintendenceofSecurityServicesControlofWeapons,AmmunitionandExplosives(SUCAMEC)byResolutionNo.2738-2015-SUCAMEC-GEPPdatedDecember15,2015.
J. Direct consumer of fuels and Liquefied Petroleum Gas (LPG)
• PermitsforinstallationsofdieselandLPGgrantedbytheRegionalBureauforEnergyandMiningofCajamarcaunderthefollowingrecords:
•
• RecordNº0001-CDGL-06-2008datedFebruary1,2008
• RecordNº0002-CDGL-06-2008datedFebruary1,2008
• RecordNº0001-CDFJ-06-2004datedApril4,2008
• RecordNº0012-CDMV-06-2008datedApril18,2008
• RecordNº0001-CDGL-06-2009datedJanuary8,2009
• RecordNº88527-704-2010datedSeptember3,2010
• RecordN°15387-112-220113datedJanuary22,2013
• RecordN°15387-112-301115datedNovember30,2015
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10.3 GRI Table of Contents
GRICode BasicGeneralContent Pages ExternalVerification Remarks
StrategyandAnalysis
G4-1 StatementoftheChiefOfficeronrelevanceofsustainabilitytothecompanyanditsstrategy 10-11 8-9
G4-2 Descriptionofthemainimpacts,risksandopportunities 56-57 8-9ProfileoftheOrganization
G4-3 NameoftheOrganization 8-9 IG4-4 Majorbrands,productsandservices 34 8-9G4-5 LocationofOrganization'sheadquarters 8-9 IIG4-6 Countriesinwhichitoperates 8-9 IIIG4-7 Natureofownershipandlegalfigure 23 8-9G4-8 Markets,includinggeographicalareas,sectorsandcustomertypes 34 8-9G4-9 DimensionoftheOrganization 34 8-9G4-10 Breakdownofemployeesbytypeofemployment,contractandgender 68 8-9G4-11 Percentageofemployeescoveredbyacollectiveagreement 72 8-9G4-12 DescriptionofOrganization'svaluechain 80-81 8-9G4-13 Significantchangesduringtheperiodcoveredbythereport 12 8-9 IV
G4-14 DescriptionofhowtheOrganizationhasadoptedanapproachorprecautionaryprinciple 56-57 8-9
G4-15Enumeratingtheprinciplesorotherexternalinitiativesofeconomic,socialorenvironmentalnaturethattheOrganizationsubscribesorhastaken
51 8-9
G4-16 Membershipsinassociationsand/ornationalandinternationalpromotionorganizations 51 8-9
MaterialAspectsandCoverageG4-17 Coverageofthereport 12 8-9G4-18 Definitionprocessofreport'scontent 12 8-9G4-19 Identifiedmaterialaspects 12 8-9
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GRICode BasicGeneralContent Pages ExternalVerification Remarks
G4-20 LimitationsofthematerialissuesidentifiedwithintheOrganization 14 8-9G4-21 LimitationsofthematerialaspectsidentifiedoutsidetheOrganization 14 8-9
G4-22 Effectexplanationofanychangeintheinformationinformedinpreviousreports 14 8-9
G4-23 Significantchangesinthescopeandcoverageoftheaspectscoveredonpreviousreports 12 8-9
Stakeholders'participationG4-24 RelationshipofstakeholdersincludedbytheOrganization 48 8-9G4-25 Basisforidentificationandselectionofparticipatingstakeholders 12 8-9G4-26 Approachesadoptedfortheinclusionofstakeholders 14 8-9
G4-27 Majorconcernsandissuesofinterestthathavearisenthroughtheparticipationofstakeholders 14 8-9
ProfileofthereportG4-28 Periodcoveredbythereport 12 8-9G4-29 Dateofthelastreport 12 8-9G4-30 Cyclepresentationofthereport 12 8-9G4-31 Pointofcontact 174 8-9G4-32 GRIContentIndexLocationforEssentialLevel 170 8-9G4-33 Policiesandpracticesofexternalverification 34 8-9
GovernanceG4-34 Corporategovernancestructure 43-44 8-9
Ethicsandintegrity
G4-56 Company´svalues,principles,standardsandrulesofbehavior 24 8-9
I Gold Fields La Cima S.A.II Main Office: Av. El Derby 055, Torre I, Oficinas 1001-1002, Residencial Lima Polo and Hunt Club, Surco.III Gold Fields La Cima S.A. only has operations nationwide.IV There have not been any significant changes in Gold Fields La Cima S.A. ownership nature nor in its operations.
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10.4 Gold Fields 2015 Gri Performance Indicators
GRICode Description Page Omissions ExternalVerification
EconomicIndicatorsArea:Economicperformance
G4-EC1 Directeconomicvaluegeneratedanddistributed 34 8-9Area:Indirecteconomicconsequences 8-9
G4-EC7 Developmentandimpactofinvestmentininfrastructureandservices 34 8-9Area:Procurementpractices
G4-EC9 Expenditurepercentageinlocationswithsignificantoperationscorrespondingtolocalsuppliers 81 8-9
IndicatorsofemploymentpracticesandethicsatworkArea:Employment
G4-LA1 Numberandrateofemployees'recruitmentandrotation,brokendownbyage,genderandregion 69
Ithasnotbeenbrokendown
byage8-9
G4-LA2 Socialbenefitsforthefull-timeemployees,notofferedtotemporaryemployees 70 8-9
AreaHealthandsafetyatwork
G4-LA5Percentageofemployeesrepresentedinjointsafetyandhealthcommitteestoassist,monitorandadviseonoccupationalhealthandsafetyprograms
60 8-9
G4-LA6Typeandratesofinjuries,occupationaldiseases,lostdays,absenteeism,andnumberofmortalvictimsrelatedtoworklocationandgender
63 8-9
Area:Trainingandeducation
G4-LA9 Averagehoursoftrainingperyear,peremployee,dividedbygenderandcategory 63 8-9
G4-LA10 Managementprogramsofskillsandtrainingtopromoteemployabilityofworkersandhelpthemtomanagetheendoftheircareers 73-74 8-9
G4-LA11Percentageofemployeesreceivingregularassessmentsonperformanceandprofessionaldevelopment,dividedbygenderandcategory
75 8-9
EnvironmentalIndicatorsArea:Materials
G4-EN1 Materialsbyweight(inMT) 90Includesonlynon-renewable
materials8-9
Area:EnergyG4-EN3 Internalenergyconsumption:bytypeofsourceandvolume 90 8-9G4-EN4 Externalenergyconsumption:bytypeofsourceandvolume 90 8-9
Area:WaterG4-EN8 Totalwaterintakeaccordingtothesource-(inMl) 90 8-9
Area:Biodiversity
G4-EN11 Ownoperationalfacilities,whichareadjacent,containedorlocatedinprotectedandnon-protectedareasofgreatdiversityvalue 87 8-9
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GRICode Description Page Omissions ExternalVerification
Area:EmissionsG4-EN15 DirectGHGemissionsbyweight(int)(scope1) 90 8-9G4-EN16 IndirectGHGemissionsbyweight(int)(scope2) 90 8-9
Area:EffluentsandwasteG4-EN22 Waterdischargebyqualityanddestination-totalpouredamount(Ml) 90 8-9G4-EN23 Totalweightofwastebytypeandweight(inT)andtreatmentmethod 90 8-9G4-EN24 Numberandvolumeofsignificantspills(inliters) 90 8-9
Area:Regulatorycompliance 8-9
G4-EN29Monetaryvalueofsignificantfinesandnumberofnon-monetarysanctionsduetonon-compliancewithlegislationandenvironmentalregulations.
90 8-9
Area:General
G4-EN31 Breakdownofexpensesandenvironmentalinvestment(inmillionsofUS$) 90 8-9
IndicatorsofproductliabilityArea:Regulatorycompliance
G4-PR9 Costofsignificantfinesfornon-compliancewithregulationsandlegislationrelatingtotheprovisionanduseofproductsandservices 34 8-9
Socialindicators 8-9Area:Localcommunities
G4-SO1Percentageofoperationswhereprogramsofdevelopment,impactassessmentandparticipationofthelocalcommunityhavebeenimplemented
103-112 8-9
HumanrightsindicatorsArea:Non-discrimination
G4-HR3 Numberdiscriminationcasesandmeasurestaken 42 8-9
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ContactAv.ElDerby055,Torre1,Oficinas301,ResidencialLimaandPoloHuntClub,SantiagodeSurco,Lima,Perú.Phone:(51-1)706-0400Fax(51-1)706-0420
Thisreportisavailableat:www.goldfields.com.peCommentsandsuggestionsonthecontentofthisreportcanbeaddressedtotheVicePresidentofCorporateAffairs.
“El Nuevo Rostro de la Minería”