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HARMONY GOLD MINING COMPANY LIMITED - Harmony issues final ultimatum to striking workers at its Kusasalethu mine

Release Date: 23/10/2012 13:55:00      Code(s): HAR       PDF(s):  
Harmony issues final ultimatum to striking workers at its Kusasalethu mine

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”)


Harmony issues final ultimatum to striking workers at its
Kusasalethu mine

Harmony Gold Mining Company Limited ("Harmony" or "the Company")
advises that it issued a final ultimatum today to the 5 400
striking workers at its Kusasalethu mine near Carletonville.

These striking workers embarked on an unprotected strike since the
evening of the 2nd of October 2012. An interdict was obtained and
subsequently communicated to all the parties on Friday, 5 October
2012 and numerous subsequent communications urged the workers to
return to work. The final ultimatum has been issued after all
other attempts and avenues to end the unprotected strike have been
exhausted. The ultimatum calls on all striking workers at
Kusasalethu to return to work by 06h00 on Thursday, 25 October
2012. Those who do not present themselves for work at that time
will be dismissed.

The unprotected strike is deemed illegal as Harmony signed a two
year agreement with the unions in 2011 under the auspices of the
Chamber of Mines which resulted in a wage increase, both last year
as well as this year on 1 July. Harmony?s annual wage increases
range between 7.5% and 10% between the various job categories. In
addition to their salaries and benefits, all members of the
bargaining units are also entitled to receive a 1% profit share
after capital per quarter.

To date, Kusasalethu has lost approximately 20 days' production,
which represents close to 13 000 ounces* of gold production, due
to the strike.

Graham Briggs, chief executive officer of Harmony commented, “We
encourage the employees at Kusasalethu to return to work before
Thursday morning in order to sustain their own future as well as
that of Kusasalethu.”

*Private Securities Litigation Reform Act Safe Harbour Statement

This statement contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities
Exchange Act of 1934, as amended, that are intended to be covered by the safe
harbour created by such sections. These statements may be identified by words
such as “expects”, “looks forward to”, “anticipates”, “intends”, “believes”,
“seeks”, “estimates”, “will”, “project” or words of similar meaning. All
statements other than those of historical facts included in this statement are
forward-looking statements, including, without limitation, (i) estimates of
future earnings, and the sensitivity of earnings to the gold and other metals
prices; (ii) estimates of future gold and other metals production and sales,
(iii) estimates of future cash costs;( iv) estimates of future cash flows, and
the sensitivity of cash flows to the gold and other metals prices; (v)
statements regarding future debt repayments; (vi) estimates of future capital
expenditures; and (vii) estimates of reserves, and statements regarding future
exploration results and the replacement of reserves. Where the Company expresses
or implies an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to have a
reasonable basis. However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by such forward-
looking statements. Such risks include, but are not limited to, gold and other
metals price volatility, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in mining plans,
project cost overruns, as well as political, economic and operational risks in
the countries in which we operate and governmental regulation and judicial
outcomes. For a more detailed discussion of such risks and other factors (such
as availability of credit or other sources of financing), see the Company's
latest Annual Report on Form 20-F for the year ended June 30, 2012 which is on
file with the Securities and Exchange Commission, as well as the Company's other
SEC filings. The Company does not undertake any obligation to release publicly
any revisions to any "forward-looking statement" to reflect events or
circumstances after the date of this presentation, or to reflect the occurrence
of unanticipated events, except as may be required under applicable securities
laws.

For more details contact:


Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 11 411 2037 (office)
+27 (0) 82 888 1242 (mobile)

23 October 2012


Sponsor:
J.P. Morgan Equities Limited

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