Gold fields CEO on mining charter

Gold Fields CEO Nick Holland discussed the company's performance and challenges in the mining industry at Africa's most popular mining gathering. Holland stated that 2016 was a successful year for Gold Fields, with normalised earnings potentially tripling and production meeting guidance for the fourth consecutive year. Additionally, costs have decreased to $980 an ounce, highlighting the positive outcome of the year. Holland credited the regional teams worldwide for their excellent work in achieving these results. However, the discussion shifted to the Gold price, with Holland expressing difficulty in predicting its future due to volatility in exchange rates. Despite Brexit and the Trump presidency, Gold prices have not reached the anticipated levels, leading to uncertainty in the market. Nonetheless, Holland remains bullish on Gold's long-term prospects, citing a decline in primary supply, which could drive price tension in the future. When asked about investor interest in Africa's mining sector, Holland acknowledged growing optimism but expressed concern about South Africa missing opportunities for growth. The country's mining industry is currently in recession, and Holland emphasized the need for industry collaboration to overcome challenges such as the proposed Mining Charter Three. The charter seeks to impose additional levies on procurement and community development, raising concerns about the industry's sustainability amid mounting pressures. Holland highlighted the importance of working together to foster industry growth and cautioned against excessive regulations that could hinder progress. Regarding the Chamber of Mines' potential court case over mining laws, Holland explained that previous agreements with the Department of Mineral Resources (DMR) favored seeking clarity through the courts. While preferring engagement over litigation, Holland underscored the need to uphold agreements made in good faith over the years. He emphasized the importance of clarity and simplicity in regulatory frameworks, believing that adherence to clear rules could facilitate industry growth and benefit society at large. Holland expressed optimism about the mining industry's potential in South Africa, provided that stakeholders collaborate effectively and focus on sustainable development.