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Harmony Gold Mining Co. Ltd. - Successfully delivers empowerment in gold

Release Date: 04/02/2002 17:46:20      Code(s): HAR
Johannesburg, 4 February - Harmony, Simane and the IDC are pleased to
announce the successful finalisation of the share subscription and funding
arrangements by Simane and the IDC in the ordinary shares of Harmony.
Harmony shareholders agreed, in a general meeting in May 2001, to issue 10,9
million Harmony ordinary shares to the IDC and Simane, and a black economic
empowerment company.  The IDC subscribed for 10,7 million ordinary shares on
behalf of Simane and Simane themselves subscribed for 0,2 million ordinary
shares.  In addition, the IDC, on behalf of Simane, subscribed for 10,9
million redeemable convertible preference shares, each such share granting
the company the right to subscribe for a Harmony ordinary share at R41,50.
The IDC has exercised its right to convert the preference shares into
ordinary shares and has placed these ordinary shares in the market from 16
January 2002 to 4 February 2002, realising an average price of R85,46 per
ordinary share.  This has enabled the IDC to realise its expected return and
in terms of the subscription agreements between Harmony, the IDC and Simane,
the 10,7 million ordinary shares which were warehoused by the IDC will now
be transferred to Simane.
Simane now hold 10,9 million shares in Harmony, representing 6,8 per cent of
Harmony's issued ordinary share capital, making it the company's largest
Bernard Swanepoel, chief executive officer of Harmony, said that at the time
of entering into the transaction, it was foreseen that the IDC funding would
be repaid, but that none of the parties had foreseen repayment in such a
short time.  "We are very pleased to have our empowerment partner now as a
debt free shareholder and we are looking forward to a long relationship with
Simane", Swanepoel said.  He added that the recent appointment of Ms A
Mokhobo, the chairman of Simane, to the Harmony board would serve to
strengthen this relationship.
Ms Mokhobo said that they are grateful to the IDC for providing the
warehousing facility.  Simane's aim is to concentrate on beneficiation and
poverty alleviation projects in the Free State, and with an ungeared balance
sheet of in excess of R1,0 billion and dividend income on the Harmony
shareholding, this could now become a reality. However in terms of the
subscription agreements, the Simane shareholding may not be sold for a
period of approximately 18 months.
Muvhango Netshitangani, head of entrepreneurial mining and beneficiation of
the IDC, said that this transaction was an example of a truly successful
empowerment initiative, with benefits for all parties concerned. "With the
wealth of expertise employed in this transaction, and based on Harmony's
track record of delivering value, we were never in doubt that this would be
a success.  We are pleased to have participated in one of the biggest
empowerment deals in the IDC's history," Netshitangani said.
For immediate release
Monday 4 February 2002
For further details contact:
Bernard Swanepoel
on +27(0) 83 303 9922
Ferdi Dippenaar
on +27(0) 82 807 3684
Issued by Harmony Gold Mining Company Limited
Corne Bobbert
Tel +27(11) 411 2036
Fax +27(11) 411 2169 Mobile +27(0) 83 380 6614
Web Site

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