SALARES NORTE
Gold Fields unveils R11.6bn Chile mine project
Gold Fields has unveiled its plans for a R11.6bn mining project in Chile, the company’s first such greenfields project in more than a decade, but details of how it would be funded remained vague. This would be the first Gold Fields project in that country. It has mines in Australia, Ghana and Peru as well as SA — its traditional home base, which now consists of a single, problematic deep-level mine called South Deep and its head office. The Salares Norte gold and silver deposit high in the Andes in northern Chile has the potential to deliver annual production of 450,000 gold equivalent ounces, with the silver output converted to a gold value, in the first seven years. This production was not factored into Gold Fields’s projected production of 2-million ounces a year over the next decade, CEO Nick Holland said. However, the pressing question for analysts was how Gold Fields would fund the R11.6bn price tag, which is a quarter ofits R45bn market capitalisation. Holland said there was ...
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