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Harmony Expands Its Australian Presence

Release Date: 26/09/2001 09:32:13      Code(s): HAR
Share code : HAR
ISIN       : ZAE000015228
Johannesburg, 25 September 2001 - Harmony today announced that it will
invest A$50 million (R215 million) to subscribe for 294 million shares of
Bendigo Mining NL ("Bendigo"). This will result in Harmony owning 31,1% of
that company. In addition Harmony would simultaneously be granted 360
million options to acquire shares in Bendigo at any time before 31 December
2003 at a price of A$0.30 per share. On exercise of these options Harmony
would own approximately 50,1% of the diluted capital of the company.
Bendigo is a single project Australian gold company which controls one of
Australia's potentially largest gold mines in the New Bendigo Gold Project.
The company controls all of the mining and exploration rights beneath and in
the vicinity of the city of Bendigo in Victoria. The gold mines which
existed in the area covered by Bendigo's rights recovered some 22 million
ounces of gold over their 100-year production period between the 1850's and
the 1950's
Harmony's cash investment will be utilised to continue a project to develop
a high grade, mechanised underground mine, with a life of 25 years, beneath
the old workings. The potential resource of the orebodies which have been
analysed to date is estimated at 12 million ounces of gold. The proposed
mine will be developed in stages and is planned to reach its design capacity
over a six-year period, at which time it is planned to mill in excess of 1,2
million tonnes per year. At a recovery grade of 10 - 12 g/t, the mine would
be producing more than 400 000 ounces of gold per annum at a cash cost of
approximately US$100 per ounce. Total cash costs, including capital, for the
project are estimated at approximately US$135 per ounce.
The transaction is subject to approval by the relevant regulatory
authorities in Australia and South Africa and the shareholders of Bendigo,
Harmony earlier in the year acquired New Hampton operations in Western
Australia which produce an estimated 220 000 ounces per annum. "We are
pleased to be further expanding our presence in Australia with the
acquisition of this stake in Bendigo Mining," says Bernard Swanepoel, Chief
Harmony was in the news earlier this week when the proposed merger between
Delta Gold and Goldfields of Australia, with a market capitalisation of
A$825 million, was announced. Harmony owns 22,96% of Goldfields or 9,8% of
the merged entity. "Our investment stake in Goldfields has delivered value
to our shareholders. Harmony is applying its resources into what we believe
is one of the most exciting gold mining opportunities in Australia. This
transaction is in line with our strategy of creating value in an industry
which is now consolidating at an accelerated speed." commented Swanepoel.
Issued by Harmony Gold Mining Company Limited. Contact: Corne Bobbert,
Tel +27 11 412 1450, Fax +27 11 692 3879, Mobile +27 83 380 6614
e-mail: cbobbert@harmony.co.za
For immediate release        For further details contact
                             Bernard Swanepoel
Tuesday, 25 September 2001   on +27(0)83-303-9922 or
                             Ted Grobicki on +27(0)83-375-4345

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