HARMONY GOLD MINING COMPANY LIMITED - Provides update on restructuring of its Doornkop mine

Release Date: 02/06/2015 13:35
Code(s): HAR
 
Wrap Text
Provides update on restructuring of its Doornkop mine

Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(“Harmony” and/or “the Company”)


Harmony provides update on restructuring of its Doornkop mine


•       Consultation with labour at Doornkop mine continues - job loss
avoidance measures a priority
•       Engagement with relevant stakeholders at all levels


Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”)
advises that in line with its market update on the 8th of May 2015 to
restructure its Doornkop mine, management is continuing its
consultation process in terms of section 189A (“Section 189A”) of the
Labour Relations Act, 66 of 1995 ("LRA") with organised labour and
other relevant stakeholders to explore a possible restructuring of the
mine.


Given the current gold price environment and the significant capital
investment required to sustain operations at this shaft, all
indications are that Doornkop will continue to make a loss in the
foreseeable future unless it is restructured.    Doornkop incurred an
operating loss after capital of R210 million during financial 2014 and
a further loss of R98 million during the nine months ended 31 March
2015.


Harmony chief executive officer Graham Briggs, said: “We have to take
into consideration the long term sustainability of the company as a
whole. The Doornkop mine continues to be a drain on the efforts and
resources of Harmony, and we need to stem these losses. The decision to
commence on this restructuring process has not been taken lightly. All
stakeholders are being consulted in an effort to minimise job losses
and to find a lasting and sustainable solution for Doornkop’s
viability.”
On Sunday, 31 May 2015, an underground fire was reported at Doornkop.
All employees were brought to safety and no one was injured.    The fire
occurred in an old mined out area where some cleaning operations had
been taking place. The cause of the fire is not known at this stage.
Production has been stopped for safety reasons and indications are that
we can start production early next week again.


“The fire has been contained and we continue to monitor the gas
readings. We will be able to extinguish the fire in the next couple of
days, enabling production to recommence”, said Graham Briggs.



For more details contact:

Marian van der Walt
Executive: Corporate and Investor Relations
Tel:   +27 (0)82 888 1242 (mobile)


2 June 2015

Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited

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