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Harmony Gold Mining Company Limited - Continues Its Cost Reduction Drive

Release Date: 08/10/2004 17:06:15      Code(s): HAR
Harmony Gold Mining Company Limited - Continues Its Cost Reduction Drive        
HARMONY GOLD MINING COMPANY LIMITED                                             
JSE:        HAR                                                                 
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
HARMONY CONTINUES ITS COST REDUCTION DRIVE                                      
Johannesburg, Friday 8 October 2004 - Harmony Gold Mining Company Limited       
(NYSE: HMY JSE: HAR) today announced that it had signed an agreement with       
Sandvic Mining and Construction (SMC) on the maintenance of the company"s       
trackless fleet at its Target Mine.                                             
Sandvic Mining and Construction, the company responsible for maintaining the    
trackless fleet at Target, has entered into a new agreement with Harmony which  
will be based on a unit cost payment basis. The new contract has an immediate   
mining cost reduction of R20/tonne and is structured such that any further      
savings will be shared between Harmony and SMC. SMC stated that they are        
demonstrating their commitment to the reduction of mining costs through the     
introduction of mechanised mining by entering into this agreement. The contract 
therefore creates a common focus between the parties.                           
This deal confirms that the company is continuously focussed on finding cost    
saving opportunities in all aspects of its operations, even through partnerships
as the deal with SMC demonstrates. "The reduction of R20/tonne will lower our   
cut-offs, increase the payable reserve and mining flexibility and therefore     
extend the life of the mine," said Philip Kotze, Mine Manager, Target Mine.     
"This agreement demonstrates that our contractors have accepted that they will  
now be measured on the same parameters as that of the company, in Rand per tonne
terms, where we have the same goal and focus," commented Bernard Swanepoel,     
Chief Executive.  "We feel confident that the two parties have set the stage for
future agreements with other suppliers of this mutually rewarding nature," he   
Issued by Harmony Gold Mining Company Limited                                   
8 October 2004                                                                  
For more details contact:  Ferdi Dippenaar                                      
Marketing Director on +27(0)82 807 3684                                         
Philip Kotze Target Mine Manager                                                
on +27(0)83 453 0544                                                            
Investor Relations Officer                                                      
Corne Bobbert                                                                   
Tel +27 11 684 0146                                                             
Mobile +27(0)83 380 6614                                                        
Date: 08/10/2004 05:06:18 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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