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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   
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                                                                       
South Africa 1760                                                               
T +27 11 411 2000                                                               
J.P. Morgan Equities Limited                                                    
Date: 18/10/2010 16:07:01 Supplied by www.sharenet.co.za                     
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