LONDON and JOHANNESBURG, May 26,
2010 /PRNewswire-FirstCall/ -- Gold Fields Limited (Gold
Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is set to become the world's
first gold mining company to sell Certified Emissions Reductions
(CERs), the financial securities used to trade carbon
emissions.
Gold Fields will derive the CERs from the capture of methane gas
at its Beatrix Gold Mine in
South Africa's Free State
province. The company will sell 1,700,000 CERs to European energy
trading company Mercuria Energy Trading SA under forward contracts
which will run until 2016. The transaction was brokered by TFS
Green, the carbon credits broker and environmental business of the
worldwide Tradition Group.
CERs are traded globally and frequently bought by industrial
companies as part of their efforts to alleviate their own carbon
emission obligations. At current CER values and exchange rates, the
CER contract is worth about R200 million.
Gold Fields will use the funds to finance a number of projects
linked to the methane capture. The first phase, set for completion
before the end of this year, comprises the installation of a
methane extraction system underground and flares above surface at a
cost of about R42 million. For the second phase Gold Fields is
looking at ways of using the gas to generate electricity, thereby
converting a harmful greenhouse gas into a valuable resource.
Construction of a power generation plant, with the potential to
generate about 5MW of electricity, is scheduled to start next
year.
So far CERs-linked projects in Africa comprise less than 2% of the total
number of projects registered by the Clean Development Mechanism
(CDM) executive board, the global body tasked with administering
CERs trading. Gold Fields' Beatrix project is one of around 15
South African projects that have to date received Designated
National Authority verification from South Africa's Department of Mineral
Resources.
The Gold Fields/Mercuria CER transaction, which is subject to
final regulatory approvals, was yesterday recognised by the
London-based Energy Risk magazine
as the "Deal of the Year" for 2010 in its annual energy risk
awards.
Gold Fields' Chief Executive Officer, Nick Holland, comments: "In addition to the
obvious financial and environmental benefits, this project will
result in a safer working environment for our people at Beatrix, as
it eliminates the hazard of underground mine methane, and it is one
of many examples that shows Gold Fields' commitment to being the
global leader in sustainable gold mining."
Methane emanates from underground geological features such as
faults, fissures and dykes and escapes during the normal course of
mining operations. If released into the atmosphere it is a potent
greenhouse gas. At Beatrix the methane gas will be captured at
source underground and then conveyed via a network of pipes to the
surface, where the methane will be flared. Installation of the
underground pipes is well underway.
"We are delighted to have been involved with this transaction -
we firmly believe that projects in Africa and other developing countries linked
to carbon emission reduction projects are where the market will be
focused in the future," says Lucy
Mortimer, global manager of TFS's CDM & Joint Initiative
Business.
Mercuria Energy Trading's Jean Francois
Steels said of the transaction: "This is our first
transaction in Africa and follows
shortly on the opening of our newest international office in
South Africa. It shows our
commitment to improving the geographical distribution of carbon
finance to include the African continent."
The Beatrix development is the first in a number of carbon
projects Gold Fields is investigating to bolster its sustainable
mining practices. The strategy is underpinned by efforts to become
more energy efficient and thus reduce dependence on coal-fired
electricity.
Gold Fields was advised by Promethium Carbon, a South African
carbon advisory company, throughout the development of the project,
by assisting in the tender development, the evaluation and
allocation of the tender.
About Gold Fields Limited
Gold Fields is one of the world's largest unhedged producers of
gold with attributable production of 3.6 million ounces* per annum
from nine operating mines in South
Africa, Ghana, Australia and Peru. Gold Fields also has an extensive growth
pipeline with both greenfields and near mine exploration projects
at various stages of development. Gold Fields has total
attributable Mineral Reserves of 81 million ounces and Mineral
Resources of 271 million ounces. Gold Fields is listed on JSE
Limited (primary listing), the New York Stock Exchange (NYSE), the
Dubai International Financial Exchange (DIFX), the Euronext in
Brussels (NYX) and the Swiss
Exchange (SWX). For more information please visit
http://www.goldfields.co.za.
*Based on the annualised run rate for the second quarter of
F2010
About Mercuria Energy:
Mercuria Energy Group is an international group of companies
active over a wide spectrum of energy markets including crude oil
and refined petroleum products, natural gas, power, coal,
biodiesel, vegetable oils and carbon emissions. Mercuria Energy is
one of the world's five largest independent energy traders, with a
strong commitment to growth in its carbon trading sector. The
company has offices in twenty countries. Its largest trading floor
is in Geneva, Switzerland.. For
more information visit http://www.mercuria.com
About TFS Green:
TFS Green is part of Tradition, a global leader in interdealer
broking. With offices in 24 countries, Tradition covers over 3,000
institutional clients and covers markets ranging from global
foreign exchange, energy and environmental products, commodities,
equities, coal, freight, precious metals, property and pulp &
paper markets to money markets, derivatives and bonds and
repos.
Tradition's CDM & JI business, TFS Green, is a market leader
in its field. It was awarded Best Primary Originator GHG Emissions
Kyoto Projects Credits (JI and CDM), Best Broker Spot & Futures
GHG Emissions EU ETS, and received a total of 16 awards for its
services within the environmental markets from Environmental
Finance in the last awards - the highest number won by any company
in the history of the awards. TFS was also awarded "Broker of the
Year 2008'' by Point Carbon. TFS has various offices around
Asia, including China, Hong
Kong, Japan, Singapore, and the
Philippines. It also works through associate firms in
Vietnam and India.
TFS Green is the trading name of Tradition Financial Services
Ltd which is regulated by the Financial Services Authority in the
UK. For more information, visit http://www.tfsgreen.com.
SOURCE Gold Fields Limited