Harmony- Harmony receives licence to mine in Papua New Guinea Release Date: 07/03/2005 17:36:01 Code(s): HAR
Harmony- Harmony receives licence to mine in Papua New Guinea
Harmony Gold Mining Company Limited
Share code: HAR
NEWS RELEASE FROM HARMONY
7 March 2005
Harmony receives licence to mine in Papua New Guinea
Harmony is pleased to confirm that on Friday March 4, the Minister of Mines of
Papua New Guinea, The Honourable Mr Sam Akotai, announced that Harmony has been
granted the licence to develop and mine the Hidden Valley project. The license
is effective immediately.
The licence was granted after a comprehensive licensing process, including
intensive reviews of all of Harmony"s environmental plans under Papua New
Guinea"s newly-enacted, strict environmental legislation.
CE Bernard Swanepoel said that feasibility studies Harmony has conducted
corroborate a robust project which is anticipated to produce on average in
excess of 300 000 ounces of gold and 4.5 moz of silver per annum from a proven
reserve of 1.88 moz of gold and 25.5 moz of silver. Harmony currently produces
approximately 300 000 oz of gold per annum from its Australian operations.
"Over and above the proven reserves which formed the basis of our feasibility
study and decision to proceed with the project, the mine life will be extended
by extensive inferred resources in the immediate area of the mine," said CE
Bernard Swanepoel. "We also control many exciting prospects in this well-
mineralised belt which will be processed through the Hidden Valley Plant."
Swanepoel says he anticipates construction of an open pit mine to commence in
mid-2005 and that the first gold will be poured in early 2007. "We expect our
cash operating costs to be approximately US$224 per ounce."
Harmony holds the rights to develop and mine the Hidden Valley project through
its wholly-owned PNG subsidiary. Nearby, are Harmony"s world-class Wafi and
Golpu projects, which are currently the subject of a pre-feasibility study.
Prepared by: Beachhead Media & Investor Relations
Jennifer Cohen 011 214 2401 / 082 468 6469
Patrick Lawlor 011 214 2410 / 082 459 6709
On behalf of: Harmony Gold
Further info: Ferdi Dippenaar 082 807 3684
The directors of Harmony accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the directors of
Harmony (who have taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.
Statements in this communication include "forward-looking statements" that
express or imply expectations of future events or results. Forward-looking
statements are statements that are not historical facts. These statements
include financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements are generally identified by the words "expect,"
"anticipates," "believes," "intends," "estimates" and similar expressions. All
forward-looking statements involve a number of risks, uncertainties and other
factors, and Harmony cannot give assurances that such statements will prove to
be correct. Risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied by the forward-
looking statements include, without limitation, the satisfaction of closing
conditions, the acceptance or rejection of any agreement by regulators, delays
in the regulatory processes, changes in the economic or political situation in
South Africa, the European Union, the United States of America and/or any other
relevant jurisdiction, changes in the gold industry within any such country or
area or worldwide and the performance of (and cost savings realized by) Harmony.
Although Harmony"s management believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned that forward-
looking information and statements are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of Harmony, that could cause actual results and developments to differ
materially from those expressed in, or implied or projected by, the forward-
looking information and statements. These risks and uncertainties include those
discussed or identified in the public filings with the SEC made by Harmony.
Date: 07/03/2005 05:36:04 PM Supplied by www.sharenet.co.za
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