HAR - Harmony Gold Mining Company Limited - Harmony closes Merriespruit 1 Release Date: 18/10/2010 16:07:01 Code(s): HAR HAR - Harmony Gold Mining Company Limited - Harmony closes Merriespruit 1
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
("Harmony" or "the company")
PRESS RELEASE
HARMONY CLOSES MERRIESPRUIT 1
Johannesburg, 18 October 2010: Harmony Gold Mining Company Limited (Harmony)
announces that, following careful and considerable review, the company will be
closing Merriespruit 1 shaft in Virginia at the end of October 2010.
Earlier this year a productivity-linked deal with the trade unions was reached
that allowed Merriespruit 1 to continue its operations provided it did not make
a loss (on a total cost basis, including any capital expenditure) for two
consecutive months and total costs remained under R250 000/kg. Despite the
operational team`s best endeavours, Merriespruit 1 has failed to meet these
conditions and closure procedures have commenced.
Employee representatives, through their trade unions, have been informed of the
closure. Management has embarked on a formal consultation process with employees
in terms of the Section 189A of the Labour Relations Act (previously agreed to
in respect of the Virginia closures), to consider alternatives to retrenchment.
Approximately 1 470 employees are affected by the closure. Of this amount, 1
200 will be transferred to mainly our growth operations and approximately 270
may be retrenched.
"The operational team and unions at Merriespruit 1 used the profitability
agreement as an opportunity to extend the mine`s life; they gave it their best
to meet the agreed conditions, but the orebody is mined out and with the current
cost pressures in South Africa it is simply no longer viable to continue mining
at this operation. Harmony will minimise job losses by transferring the majority
of affected employees to mainly our growth projects," said Harmony CEO Graham
Briggs.
For more details contact:
Marian van der Walt
Executive: Corporate and Investor Relations
+27 82 888 1242 (mobile)
Henrika Basterfield
Investor Relations Officer
+27 11 411 2314 (work)
+27 82 759 1775(mobile)
Corporate Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 11 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 18/10/2010 16:07:01 Supplied by www.sharenet.co.za
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