Gold Fields CEO on how SA’s COVID-19 lock-down is impacting the company

Gold Fields CEO, Nick Holland, recently sat down with CNBC Africa's Chris Bishop to discuss the effects of South Africa's COVID-19 lockdown on the company's operations. The conversation shed light on how Gold Fields has been navigating the challenges posed by the pandemic and the subsequent lockdown measures. Despite the hurdles faced, Holland remains optimistic about the company's ability to resume production and generate revenue amidst the crisis. Gold Fields, like many other mining companies, has had to adapt swiftly to the changing landscape brought on by the global health crisis. With only one mine in South Africa, comprising 8-9% of the company's total global production, Gold Fields had to strategically approach the phased reopening of its operations following the relaxation of lockdown restrictions. Holland expressed his satisfaction with the progress made in ramping up production within the regulated parameters, highlighting an expected increase in output and revenue due to current high gold prices. Unlike some miners who projected a month-long timeline to resume production, Gold Fields' mechanized mining process enables a quicker turnaround. By leveraging pre-mined ore reserves, the company anticipates the swift extraction and processing of gold material. Holland emphasized the potential risks associated with COVID-19 infections within the workforce, acknowledging the uncertainties and challenges in forecasting future production losses. While the company has been fortunate to remain infection-free in various operation regions, the looming threat of infections necessitates stringent health and safety protocols to mitigate potential disruptions. The CEO discussed the contrasting approaches to lockdown measures across various countries where Gold Fields operates, citing examples from Peru and Australia. Despite facing lockdowns in these regions, Gold Fields managed to sustain production by adopting enhanced safety measures and adjusting operational logistics. Remote mining sites in Peru and Australia facilitated uninterrupted production by minimizing external interactions and enforcing rigorous health screening protocols. The decentralized nature of these operations allowed for greater flexibility in adapting to the pandemic's impact. Holland also highlighted the challenges faced by conventional gold mines in South Africa, where densely populated mining sites pose significant logistical challenges. The contrast between remote mining operations and large-scale mines underscores the complexities of maintaining business continuity in the face of a global crisis. As Gold Fields continues to navigate the uncertainties brought on by the pandemic, the CEO's strategic leadership and operational insights play a pivotal role in steering the company towards recovery and growth. The resilience and adaptability displayed by Gold Fields in response to the pandemic reaffirm the company's commitment to sustaining its operations and supporting its workforce through turbulent times. Moving forward, Gold Fields remains focused on optimizing its production capabilities, safeguarding the health and well-being of its employees, and contributing to the broader efforts of economic revival in the mining sector.