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HARMONY GOLD MINING CO LTD - HARMONY AND NUM AGREE ON CONOPS AT ELANDSRAND

Release Date: 17/08/2004 08:16:00      Code(s): HAR
HARMONY GOLD MINING CO LTD - HARMONY AND NUM AGREE ON CONOPS AT ELANDSRAND      
Harmony Gold Mining Co Ltd                                                      
JSE:        HAR     HAR                                                         
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
HARMONY AND NUM AGREE ON CONOPS AT ELANDSRAND                                   
Johannesburg, Monday, 16 August 2004 - Harmony Gold Mining Co Ltd          (JSE 
: HAR  NYSE : HMY) today announced that it had reached an agreement with the    
National Union of Mineworkers (NUM) on the implementation of CONOPS at its      
Elandsrand operations in North West.                                            
Following an agreement reached with NUM on 16 July 2004, at which the concept   
and implementation of CONOPS were agreed to at a national level, discussions    
were initiated at a regional level.                                             
With the conclusion of this agreement, the company has now implemented CONOPS at
its Free Gold, Evander, Target, ARMgold and Elandsrand operations, representing 
66% of its South African production.                                            
The current Evander operations are mature in nature and will benefit in the     
short-term from the introduction of CONOPS.  Benefits will, however, be more    
evident as its growth project comes into production.                            
"Having an agreement on CONOPS at Elandsrand will be beneficial to all involved.
Elandsrand, which is currently developing a new mine below the current workings,
is ideally suited to the work practices related to CONOPS.  Returns from this   
project, at significantly higher recovery grades and a lower cash cost profile  
than the current operations, will be optimized for all our stakeholders."       
commented Bernard Swanepoel, chief executive.                                   
The Elandsrand New Mine project is expected to produce some 450 000 ounces of   
gold over a project life of some 17 years at a cash cost of US$260/oz.          
CONOPS (continuous operations) refers to the practice where a mine operates on  
all the days of the year, including Sundays.  Workers operate 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 most 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 (excluding the 12 public holidays).  This will result in a 12%    
increase in labour on the shafts as well as a 5% reduction in unit cost/tonne.  
Issued by Harmony Gold Mining Company Limited                                   
16 August 2004                                                                  
For more details contact:                                                       
Bernard Swanepoel                                                               
on +27(0)83 303 9922                                                            
or                                                                              
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: 17/08/2004 08:16:04 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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