JOHANNESBURG, March 29, 2016 /CNW/ - Gold Fields Limited (Gold
Fields) (JSE, NYSE: GFI) is pleased to announce that it has
concluded a development agreement with the Government of
Ghana for both the Tarkwa and
Damang mines. The highlights of the agreement include:
- A reduction in the corporate tax rate from 35.0% to 32.5%,
effective 17 March 2016.
- A change in the royalty rate from a flat 5% of revenue to a
sliding scale royalty based on the gold price (as per table below),
with effect from 1 January 2017.
|
Royalty
rate
|
|
|
|
|
Gold price
|
|
|
|
|
|
|
|
3.0%
|
|
|
|
|
US$0 -
1,300/oz
|
|
|
|
|
|
|
|
3.5%
|
|
|
|
|
US$1,300 -
1,449.99/oz
|
|
|
|
|
|
|
|
4.0%
|
|
|
|
|
US$1,450 -
2,299.99/oz
|
|
|
|
|
|
|
|
5.0%
|
|
|
|
|
US$2,300/oz -
unlimited
|
|
|
|
|
|
|
The term of the agreement, effective from 17 March 2016, will be for a period of 11 years
for Tarkwa and nine years for Damang, each renewable for an
additional five years.
Ghana continues to be a key
region for Gold Fields and we commend the Government of
Ghana for creating a fair and
competitive environment in the country.
Notes to editors
About Gold Fields
Gold Fields Limited is an unhedged, globally diversified
producer of gold with eight operating mines in Australia, Ghana, Peru
and South Africa with attributable
annual gold production of approximately 2.2 million ounces. It has
attributable Mineral Reserves of around 48 million ounces and
Mineral Resources of around 108 million ounces. Attributable copper
Mineral Reserves total 620 million pounds and Mineral Resources
6,873 million pounds. Gold Fields has a primary listing on the JSE
Limited, with secondary listings on the New York Stock Exchange
(NYSE) and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities South Africa (Pty)
Ltd
SOURCE Gold Fields Limited, South
Africa