JOHANNESBURG – Gold Fields, the JSE-listed gold producer, yesterday raised concerns about escalating power costs at its South Deep mechanised mine in Carletonville as the group announced the return to a $71 million profit (R1.08 billion) in the six months to June from $367m in the same period last year.
The group said South Deep, Gold Fields’ only South African mine, incurred a 13 percent electricity tariff hike during the period.
Chief executive Nick Holland said South Deep’s annual power bill reached R500m, forcing the group to seek alternative energy sources.
“If that doubles in five years, that's another R500m for us a year,” Holland said. “What about the rest of the industry? How are they going to cope?”
Holland said structural inflation was a major problem for gold mining.