HARMONY NEWS RELEASE
Release Date: 10/09/2001 07:08:16 Code(s): HAR
HARMONY GOLD MINING COMPANY LIMITED
Share code : HAR
ISIN : ZAE000015228
HARMONY EMPOWERMENT DEAL CONCLUDED
Randfontein, 7 September 2001 - Harmony Gold Mining Company Ltd (Harmony),
Simane Investments (Pty) Ltd (Simane) and the Industrial Development
Corporation (IDC) are pleased to announce that the empowerment transaction
first announced in April this year, has been concluded.
To conclude the agreement, Simane has subscribed for 222 300 ordinary shares
in Harmony at a price of R37,86 per share.
At a general meeting of shareholders of Harmony on 18 May 2001, authority
was granted for the issue of 222 222 Harmony shares to Komanani Mining (Pty)
Limited (Komanani) and 10 736 628 Harmony shares to the IDC. Although the
IDC subscribed to their shares, Komanani had failed to do so by the set
"The new agreement is on substantially similar terms as previously agreed to
between the IDC, Harmony and Komanani," says Bernard Swanepoel, Harmony's
chief executive. "The 222 300 shares that Simane subscribed for may not be
disposed of for 18 months following their issue, and the voting rights over
the 10 736 628 shares subscribed to by the IDC, are to be transferred to
Says Muvhango Netshitangani, Strategic Business Unit Head in Entrepreneurial
Mining and Beneficiation at the IDC, "This transaction demonstrates the
IDC's commitment to empowerment and affirms our position as a partner of
choice for transactions of this nature. The IDC is providing financial
assistance to Simane for the acquisition of a significant shareholding in
quality assets. We view our relationship as a credible one that will add
value for all Harmony shareholders."
According to Audrey Mokhobo, chairperson of Simane, the company is extremely
excited about being one of the largest shareholders in Harmony. The company
has the necessary funds to pursue an immediate investment in Harmony.
"We see this as a major opportunity that will allow Simane to quickly
develop opportunities such as participation in the beneficiation projects in
the Free State and outsourcing of Harmony's non-core business. Simane's
vision is to become Harmony's desired strategic partner in the development
of opportunities in the mining and precious metals industry.
"The company aims to make further strategic investments in the mining
industry, particularly in gold mining, and make a value-added input to its
investors, partners, shareholders, and other stakeholders through the
leveraging of its directors' and shareholder's skills, experience, networks,
"In addition, we aim to build a substantial business which is focussed on
delivering wealth to a broad empowerment base," explains Mokhobo.
The share price represents a discount of 10% to the weighted average traded
price over the 30 business days prior to the date the issue was agreed to by
Harmony's directors. Simane has raised the R10million required to invest in
Adds Swanepoel, "We are extremely pleased that the IDC and Simane have
established a sound business relationship which will ensure the success of
this important initiative. Harmony will continue to be proactive in our
changing gold mining environment, empowerment being one of our areas of
For more information, please contact:
Harmony Bernard Swanepoel 083 303 9922
Ferdi Dippenaar 082 807 3684
Simane Audrey Mokhobo 082 780 5392
IDC Muvhango Netshitangani 082 371 5711
Issued by Theresa Lee, PR Manager, Harmony Gold Mining Company Limited, Tel
011 411 2227, Mobile 082 851 6218, Fax 011 411 2169, E-mail
Notes to the Editor
Simane Security Investments (Pty) Ltd. (trading as Simane Investments) was
founded in 2000 as a vehicle to pursue opportunities and investments
strictly in the mining sector with an emphasis on precious metals. The
company has a broad shareholder base and skilled management, and is
committed to creating wealth for its stakeholders through the convergence of
skills and the credibility of its members.
Simane believes that shareholder value will be best enhanced by exploring
mining and related opportunities available in the region with a strong and
The directors of Simane are Audrey Mokhobo (chairman), Mavuso Msimang
(deputy chairman), Themba Langa and Jomo Ntombela.
Audrey Mokhobo (Master of Arts in Political Science specialising in Public
Administration) is the chairman of Simane and holds certificates in Short
Term and Life Insurance, Senior Executive Training from Harvard and Wits
Business School. She has held senior positions at the Development Bank of SA
and Eskom. She has been a Special Advisor to the Minister of Public
Enterprises, on the restructuring of Transnet and Deputy CEO of The National
Command Centre for Emergency Reconstruction. She is a director of Capital
Alliance Life, Barnard Jacobs Mellet, Rotek Industries, M-Net Phuthuma
Trust, Women's Development Bank Investment Holdings, and Khoetsa
Mavuso Msimang (BSC., Biology, MBA) is the deputy chairman of Simane and
obtained an MBA specialising in Project Management. He worked in Zambia,
Kenya, Ethiopia and Canada with international NGOs and UN agencies in the
field of socio-economic development. He has served as Executive Director of
Tourism SA, CEO Tourism KwaZulu and is currently CEO of the South African
National Parks Boards. He is non-executive chairman of Umnotho WeSizwe,
Kunene Technologies, Grintek, and Mvula Trust.
Themba Langa (B. Juris, LLB.,Hdip Tax, H.Dip (Company Law)) is a senior
partner of Langa Attorneys and does work for public sector entities and
large private sector corporates. He is a director of Mageba Investments, and
Limbede Investments (the ANC Youth League's Investment Company). He has
been a member of the Katz Tax Commission's Sub-committee and is currently a
member of SACOB Taxation Committee and a member of The Income Tax Appeals
Jomo Ntombela (BA (Hons) Economics, Master Public Admin (Finance and
Economics)) has over 6 years experience in various positions in the banking
industry including structured finance, corporate finance, limited recourse
lending, and financial advisory in the mining & energy, media & telecomms,
and other sectors. He has worked for SCMB, SIGA Capital, and his
structuring and advisory services are deployed currently in transactions
with ABSA, Mafube, Umnotho, and various other corporates. He also serves on
the boards of the Postbank, and Octogen Limited (a SAAMBOU subsidiary).
Shareholding of Simane:
- E-Goda Telecoms t/a Khoetsa - 30%
- Vaya Investments - 20%
- E-Sim Telecoms t/a Mageba - 30%
- Sifikile Mining - 20%
Simane is unique in that it is more than 40% owned by women and 100% black
Khoetsa Holdings is a women's investment grouping focussed on opportunities
where the members can leverage their skills in technology, transformation
and business. The company pursues investment opportunities where it can
take an active and operational role. One of its companies, Khoetsa
Technologies, invests in call centres which manage outsourced customer
relationship management services of major companies, training, and skills
Sifikile Mining (Pty) Ltd is a vehicle invited to participate in Simane for
the purposes of housing the local (Free State) beneficiation projects
because of its shareholders' strong ties in the Free State. Sifikile is the
holding company of Fukama (Pty) Ltd and Yarona Investments (Pty) Ltd.
Fukama (Pty) Ltd is lead by Mrs. A.N. Matime and consists of a group of
prominent women who have been carefully selected to reflect solid
shareholding, political and community credibility among other credentials.
The group targets investment opportunities in general where they can assist
in business development.
Yarona Investment (Pty) Ltd. is an all-Free State company comprising of MK
veterans, academics, Free State businessmen, and community organisations.
Mageba Mining is an investment holding company whose main focus is the
leveraging of its directors' expertise in the legal and financial fields by
converging black entrepreneurs with opportunities in a sustainable manner.
Vaya Investments is composed of founder members Mr. Mavuso Msimang and Mr.
Vusi Nkosi who have a track record in management, mining and community
development. The company also has a relationship with a well-established
community development trust and set aside a portion of its shareholding for