Harmony Gold Mining Co. Ltd. | Company Profile

About The Company

In FY08, Harmony produced 1.55 million ounces of gold, making it one of the world’s largest gold mining companies. The group’s operations are located primarily on the Witwatersrand Basin in South Africa, encompassing ten underground operations, an open-pit mine and surface operations that encompass four provinces, Gauteng, North West Province, Mpumalanga and the Free State. The Company also operates an open-pit mine in Papua New Guinea.

In FY08, Harmony announced the formation of Rand Uranium (Pty) Ltd (Rand Uranium), a focused uranium company that will turn to account the substantial uranium-rich material held by the group at its Randfontein operations. Harmony will hold a 40% stake in Rand Uranium, with Pamodzi Resources Fund holding the balance.

Also in FY08, the group announced the Morobe Mining Joint Venture entered into with Newcrest Mining Limited (Newcrest) of Australia, in which Newcrest will earn up to 50% of Harmony’s projects in Papua New Guinea (PNG) by contributing a maximum of $525 million in two phases.

Harmony’s exploration portfolio is largely focused on highly prospective areas in PNG, including the Wafi-Golpu project, although renewed exploration activity has begun in South Africa.

As at the end of June 2008, the company employed 48 676 people, largely in South Africa, comprising 41 521 full-time employees and 7 155 contractors.

The group’s primary listing is on the JSE Limited (share code: HAR) in South Africa. Harmony’s ordinary shares are also listed on stock exchanges in London (HRM), Paris (HG) and Berlin (HAM1), and are quoted in the form of American Depositary Receipts on the New York and Nasdaq exchanges (HMY), and as International Depositary Receipts on the Brussels exchange (HMY). Harmony's’ shareholders are located around the world, with the largest bases being in South Africa (39%), North America (39%), the United Kingdom (14%) and Switzerland (4%).

The Projects

Operations in South Africa

The group’s operations are located primarily on the Witwatersrand Basin in South Africa, encompassing ten underground operations, an open-pit mine and surface operations in four provinces, Gauteng, North West Province, Mpumalanga and the Free State.

- Bambanani -

The Bambanani mine is located in the Free State Province, near the town of Welkom. It comprises one shaft feeding the Free State One Plant.

- Doornkop -

The Doornkop mine is located in the province of Gauteng, near the town of Randfontein. The mine is a joint venture with African Vanguard Resources (Pty) Ltd, a BEE partner that owns 26% of the asset.

- Elandsrand -

Elandsrand mine straddles both Gauteng and North West Province, and is located near the town of Carletonville. The mine was acquired by Harmony in January 2001.

- Evander -

The Evander operations consist of four operating shafts, Evander 2 and 5 (operating as one unit), and Evander 7 and 8.

- Joel -

The Joel mine is located in the Free State province, near the town of Theunissen. The mine comprises two shafts and ore is transported to the central plant near Virginia.

- Kalgold -

The Kalgold mine is an open pit operation located near the town of Mafikeng in North West Province. A CIL plant is located on site. The mine was acquired by Harmony in July 1999.

- Masimong -

The Masimong mine is located in the Free State province, near the town of Riebeeckstad. The mine comprises No 5 shaft, which is the operating shaft, and No 4 shaft, which was closed but is still used for ventilation purposes and as a second escape route.

- Phakisa -

The Phakisa mine is located in the Free State province, near the town of Odendaalsrus. The mine was brought into production in FY08 and comprises a single shaft system extending to a depth of 2 427 m below surface.

- Phoenix -

Phoenix is a tailings retreatment operation, located at and adjacent to Harmony’s current and historical mining operations in the Free State province.

- Target -

Target experienced a dismal year as a combination of falls of ground, flooding, the low availability of mechanised equipment and belt systems, and poor fragmentation in the massive stopes, all conspired to significantly reduce volumes and flexibility.

- Tshepong -

The Tshepong mine is located in the Free State province, near the town of Odendaalsrus. The mine comprises a vertical shaft transporting ore to Free State 1 Plant.

- Virginia -

The Virginia operations comprise the Harmony 2, Merriespruit 1 and 3, Unisel and Brand shafts. They are located in the Free State province, near the town of Virginia.

Operations in South Africa

The Hidden Valley mine is located in Morobe Province in Papua New Guinea (PNG), some 300km north-west of Port Moresby and 90km south-west of Lae. The mine, which is currently under construction, will process some 4.2 million tonnes of ore per year from two open pits: one large open pit processing the Hamata orebody and the second larger open pit processing the Hidden Valley and Kaveroi orebodies. Annual gold production is expected to peak at 275 000 ounces in 2019.

The mine is located in a highly prospective area and it is envisaged that, as exploration continues, the life of the process facility will be extended from other sources. Extending the mine life however would require the construction of a new tailings storage facility (TSF). See the exploration review for further information and Mineral Resource and Ore Reserve section for geological information.

For more detailed information about the projects and the company in general, please visit the website of Harmony Gold!

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