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HARMONY GOLD MINING COMPANY LIMITED - HARMONY ACTS TO ADJUST TO THE WEAK

Release Date: 02/04/2004 14:09:15      Code(s): HAR
HARMONY GOLD MINING COMPANY LIMITED  - HARMONY ACTS TO ADJUST TO THE WEAK       
RAND/Kg GOLD PRICE                                                              
HARMONY GOLD MINING COMPANY LIMITED                                             
JSE :HAR  HAR                                                                   
NYSE:     :HMY                                                                  
ISIN No.  :ZAE000015228                                                         
HARMONY ACTS TO ADJUST TO THE WEAK RAND/Kg GOLD PRICE                           
ENVIRONMENT                                                                     
Johannesburg, Friday 2 April 2004 - Harmony Gold Mining Company Limited         
(NYSE: HMY JSE: HAR) today announced that the company has commenced a process   
that may result in the restructuring of some of its operations due to the impact
of the weak gold price environment.                                             
"We have seen our cash operating profit levels decrease substantially.  The     
lower R/kg gold price we receive increases our cut-offs (breakeven grade),      
resulting in some ore reserves becoming uneconomical to mine. Some of our older 
marginal shafts, Welkom 1, Orkney 6, Eland (in the Free State) and Merriespruit 
3 are nearing the end of their economic life and may unfortunately be closed,"  
commented Bernard Swanepoel, Chief Executive. Masimong 4 shaft and Nyala shaft  
have also been given notice of a 60 day statutory review period which has       
commenced. All service functions and other areas of the company will also       
subsequently be rightsized.                                                     
Harmony has notified and met with the respective unions and associations        
involved. Consultations are in progress and the restructuring process is        
expected to be completed over a period of two to three months. The company is   
looking at  alternatives to reduce cost and to minimise the impact of the       
restructuring process, and these will include input from the unions and         
associations.                                                                   
In terms of alternative job opportunities the company is continuing with its    
implementation of CONOPS. "The successful phased introduction of CONOPS at the  
various operations at which we have negotiated agreements will result in some   
new employment opportunities becoming available," continued Bernard.            
In terms of cost reduction, Harmony has also announced on April 1st that it has 
successfully completed the placement of a R1,7 billion convertible bond. This   
will reduce its South African interest payments by approximately R85 million per
year.                                                                           
With regard to sustainable organic growth, the company recently provided the    
market with feedback on progress of its five growth projects in South Africa.   
These projects, undertaken at a total cost in excess of R3,0 billion, will      
increase Harmony"s production base and lower its cost profile. "We have         
committed ourselves to completing the projects which will result in benefits to 
all our stakeholders.  Whilst we expect to create some 7 500 employment         
opportunities over the next 5 years with the completion of these growth         
projects, our shareholders will receive benefits as well.  Our principle focus  
in the short term however is to remain profitable with adequate cash flows to   
fund these investments thereby ensuring our future," concluded Bernard.         
Harmony, South Africa"s largest gold producer employs approximately 53 000      
people in the six principal gold producing regions in South Africa.             
About CONOPS (continuous operations)                                            
CONOPS refers to the practice where a mine operates on all the days of the year,
including Sundays. Workers work on a roster or shift arrangement which sees them
work the same amount of hours per week and therefore the company needs to employ
more people in order to facilitate working the additional days. Currently gold  
mines in South Africa operate for approximately 273 days per year. The          
successful introduction of CONOPS can increase this number to 353 days per year.
ENDS                                                                            
Issued by Harmony Gold Mining Company Limited                                   
2 April 2004                                                                    
For more details contact:                                                       
Ferdi Dippenaar                                                                 
on +27(0)82 807 3684                                                            
Investor Relations Officer                                                      
Corne Bobbert                                                                   
Tel +27 11 684 0146                                                             
Mobile +27(0)83 380 6614                                                        
cbobbert@harmony.co.za                                                          
www.harmony.co.za                                                               
JSE:        HAR   HAR                                                           
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
Date: 02/04/2004 02:09:19 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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