STATEMENT BY HARMONY GOLD MINING CO LTD
Harmony Gold Mining Company Limited
ISIN No.: ZAE000015228
ISIN No.: ZAE000031209
JOHANNESBURG - 15 JULY 2003
Over the past few days, a number of reports have appeared in various
publications regarding the impact of the roles of Mr. Mzi Khumalo, the
Industrial Development Corporation (IDC) and Simane, in Harmony"s Black Economic
Empowerment (BEE) initiatives.
Our company, which pro-actively initiated participation by previously
Historically Disadvantaged South Africans (HDSAs) in the growth of the company
over the past three years, has the following comments on these events:
1. We have participated in four BEE transactions to date, enabling broad bas
participation in the South African gold mining industry.
2. Regarding the Simane transaction, Harmony was initially approached by the
IDC, who was willing to finance the participation by a BEE company in the growth
activities of the company.
3. An agreement was initially reached with Komanani, a consortium led by Mr.
Mashudu Ramano. This initiative was approved and supported by the Department of
Minerals and Energy (DME) at the time.
4. On failing to secure finance to facilitate their participation, the IDC
proposed replacing Komanani with Simane.
5. Harmony"s rationale for the transaction was to strengthen the company"s
balance sheet at the time in order to continue with its strategy of acquiring
mainly South African assets. Harmony raised an amount of R862 million which was
used to finance the acquisition of 50% of Free Gold from AngloGold in December
6. To protect the interests of our shareholders and the credibility of the
transaction, provision was made in the agreement for a lock-up period on the
sale of the issued shares as well as limitations on the transfer of shareholding
to ensure the delivery of the initial BEE benefits.
7. Harmony supports the principles of the Mining Charter and believes that the
objective of broad based empowerment within the gold industry of South Africa is
8. Harmony regards the matter as closed.
Date: 15/07/2003 08:00:04 AM Supplied by www.sharenet.co.za
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