Harmony Gold – Opening New Opportunities in South Africa and Papua New Guinea

The name Harmony Gold is renowned across the world for its mining activities. The company is listed on not only the Johannesburg Stock Exchange but also New York, Berlin and Brussels. So when Harmony officially opened the Phakisa Mine in 2008, it was an exciting opportunity to create jobs.

Harmony Gold Mining Company Limited (Harmony), one of the world’s largest gold mining companies, operates in South Africa and in Papua New Guinea (PNG). Safety remains Harmony’s number one priority as its aim is to mine safe, profitable ounces. In South Africa, the company has 10 underground and several surface operations. In PNG, Harmony has a 50 percent interest in Morobe Mining Joint Ventures (MMJV), which includes Hidden Valley, an open-cast gold and silver mine which began production in FY10, the Wafi-Golpu project, and extensive exploration tenements.

Harmony’s exploration portfolio focuses principally on highly prospective areas in PNG (through MMJV) and more than 7 700km² of exploration tenements which are 100 percent owned by Harmony. Harmony’s corporate headquarters are located in Randfontein, Gauteng, South Africa. Significant capital expenditure in recent years is aimed at accessing the group’s extensive resources and extending the lives of its mines. In 2011, Harmony reported mineral reserves of 41.6 million ounces and mineral resources of 163.9 million ounces. Harmony is a publicly listed company. The group’s primary listing is on the JSE Limited (share code: HAR) in South Africa. Harmony’s ordinary shares are also listed in the form of American Depositary Receipts on the New York Stock Exchange (HMY), and as International Depositary Receipts on the Brussels exchange (HMY) and Berlin (HAM1).

Harmony was incorporated and registered as a public company in South Africa back in 1950 and later became a Randgold-managed company, exploiting the single Harmony mine lease. In 1995, Harmony was recreated as a separate entity following the winding up of Randgold.
Since that time the company has significantly increased its operations, expanding from a single, lease-bound mining operation into an independent, world-class gold producer. A series of acquisitions followed and the group received additional mining rights in the Free State, Mpumalanga, Gauteng and North West province in South Africa when it acquired Lydex in 1997, Evander in 1998, Kalgold in 1999, Randfontein in 2000, ARMgold in 2003 and Avgold in 2004.

Today Harmony has mining operations in South Africa and Papua New Guinea. At the end of FY17, Harmony employed 33201 people in total- 26478 employees and 47512 contactors in South Africe, and 1300 employee and 911 contractors in Papua New guinea.
“Our operation in Papua New Guinea is the Hidden Valley open-pit gold and silver mine. We also have a 50:50 joint venture partnership with Newcrest Mining Limited (Newcrest) which includes the Wafi-Golpu project in Morobe Province and significant exploration tenements. In addition, Harmony has a wholly-owned exploration portfolio that focuses on highly prospective areas in Papua New Guinea, including the Kili Teke gold-copper prospect”.

Harmony has been a very successful explorer in Papua New Guinea, by investing in and growing the Golpu project and by discovering the Kili Teke prospect. In developing a portfolio of world-class gold-copper assets in Papua New Guinea – replacing ounces at a discovery cost of less than US$10 per gold equivalent ounce – we are creating excellent long-term value for Harmony’s shareholders.

Harmony operates in The Witwatersrand Basin and Kraaipan Greenstone Belt in South Africa, and in Papua New Guinea. The company has nine underground mines, one open-pit mine and several surface operations in South Africa. In Papua New Guinea, it has Hidden Valley, an open-pit gold and silver mine and a 50% interest in the Morobe Mining Joint Venture, which includes the Wafi-Golpu project and extensive exploration tenements. Outside the joint venture, Harmony’s own exploration portfolio focuses principally on highly prospective areas in Papua New Guinea.

“In FY17, our South African operations accounted for 91% of total gold production of 1.09Moz, with 9% coming from Papua New Guinea. At 30 June 2017, Harmony reported attributable gold equivalent mineral reserves of 36.7Moz of gold, and attributable gold mineral resources of 104.3Moz. At the end of FY17, Harmony employed 33 201 people in total – 26 478 employees and 4 512 contractors in South Africa and 1 300 employees and 911 contractors in Papua New Guinea (excluding employees of the Morobe Mining Joint Ventures). Our employees are drawn from communities around our operations, from other provinces in South Africa and Papua New Guinea and from other countries (Lesotho, Mozambique, Zimbabwe and Australia)”.

Lauren Fourie, Investor Relations Manger of Harmony Gold spoke of planning and strategies “In line with our strategic objective, our medium-term aim is to increase annual gold production to approximately 1.5Moz by FY19 by: growing, nurturing and developing our core assets through operational excellence ,organic growth, identifying and evaluating value-accretive acquisitions in South Africa, Papua New Guinea and the rest of Africa.”

“By ensuring operational excellence and adhering to our company values, applying mining discipline, further increasing our productivity, creating an enabling environment and applying grade cut-offs, we believe that our guidance for FY18 is realistic and achievable. These actions position our operations to achieve safe, profitable production in future. Realistic planning supports our strategy to optimise assets – our ore bodies, our infrastructure and our people. This will ensure safer, more profitable production”.

“By mining safely and profitably always, we will ensure the financial strength and flexibility necessary to underpin our future sustainability and growth. This, in turn, is crucial to ensuring that we continue to serve all our stakeholders’ best interests fairly”.