HAR - Harmony Gold Mining Company Ltd - Press Release: Harmony`s acquisition of Release Date: 22/02/2010 09:15:02 Code(s): HAR HAR - Harmony Gold Mining Company Ltd - Press Release: Harmony`s acquisition of
Pamodzi Gold`s Free State assets completed
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
Share code: HAR
ISIN: ZAE000015228
PRESS RELEASE
HARMONY`S ACQUISITION OF PAMODZI GOLD`S FREE STATE ASSETS COMPLETED
Johannesburg. Monday, 22 February 2010. Harmony Gold Mining Company Limited
(Harmony) is pleased to announce that all conditions precedent relating to its
acquisition of the Pamodzi Gold Free State (Proprietary) Limited`s assets
(Pamodzi Gold`s Free State assets), have been fulfilled and that the deal has
now become unconditional.
During the past few months, Harmony conducted pre-production work at the shafts,
to make these operations safe and return them to production. Production at Steyn
2 and Loraine 3 shafts will now commence and more work is being done to
underground workings at Steyn 1 shaft. Production at these 3 shafts for the
first 12 months is estimated at 100 000 oz at an average recovered grade of
5.5g/t and at a cash cost in the order of R218 000/kg. Production will then
increase to 150 000 oz for the second 12 months at a cash cost of about R160
000/kg.
The plant clean-up began in December 2009, and 800kg of gold is expected to be
recovered over the next 18 months. Milling of rock from the Freddies 9 waste
dump at a throughput of 35 000tpm and a recovered grade of 0.55g/t has
commenced. This rock is processed at Harmony`s Target plant. Harmony has re-
employed 1000 employees and we expect the total number of employees to increase
to approximately 2,500 over the next two years.
Harmony CEO Graham Briggs said: "We are pleased that the deal has been
successfully concluded. Our teams are now working hard to ensure that these
shafts remain safe and are productive. Our planning indicates promising results
from these operations. "
For more details contact:
Esha Brijmohan
Investor Relations Officer
On +27 (0)82 759 1775
Or
Marian van der Walt
Executive: Corporate and Investor Relations
On +27 (0)82 888 1242
Corporate Office:
Randfontein Office Park
PO Box 2
Randfontein
South Africa 1760
T: +27 (0)11 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 22/02/2010 09:15:02 Supplied by www.sharenet.co.za
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