HARMONY GOLD MINING COMPANY LIMITED - Harmony's Kusasalethu Mine to re-openRelease Date: 14/02/2013 11:16:00 Code(s): HAR PDF(s):
Harmony's Kusasalethu Mine to re-open
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
(“Harmony” or “the company”)
HARMONY’S KUSASALETHU MINE TO RE-OPEN
Harmony Gold Mining Company Limited („Harmony" or the „Company")
is pleased to announce that its Kusasalethu mine – closed since 20
December last year – will re-open in a phased process following
the successful conclusion of an agreement with the various trade
unions representing the majority of all employees at the mine.
The company temporarily closed the mine in the interest of safety
following weeks of unprotected strike action, a refusal to adhere
to work policies and procedures, and several incidents of violence
by some employees and contractors.
A consultation process in terms of Section 189 of the Labour
Relations Act, 66 of 1995 (“LRA") began on 7 January 2013 between
Harmony and Kusasalethu employees represented by the Association
of Mineworkers and Construction Union (AMCU), the National Union
of Mineworkers (NUM), Solidarity and UASA (collectively referred
to as “the Unions”).
A pre-condition for re-opening the mine was the acceptance by all
employees of various conditions, all broadly relating to employees
committing to full compliance with policies and procedures and
safe and orderly conduct. These conditions were agreed to by the
Unions. In terms of the agreement it was also agreed that each
employee would sign a code of conduct to show their individual
commitment to ensuring that Kusasalethu is mined in a safe and
secure way with full respect for the rule of law.
The start-up plan for the mine will commence on 15 February 2013.
Employees will return over a period of time in phases and will be
called back individually from about 19 February 2013 to ensure a
safe and smooth process. Individual signings of the code of
conduct, training on the guarantees and undertakings agreed to in
the agreement as well as health and safety inductions will start
on the same date. Inductions and the process of making underground
areas safe are expected to take up to six to eight weeks to
Consequently, it is planned that the mine will operate as normal
towards the end of April 2013. The mine is expected to return to
full production towards the end of June 2013.
The Section 189 process in terms of the LRA has been suspended for
a further 12 months, which means that should the situation on the
mine degrade to a situation similar to that which gave rise to the
temporary closure, the Section 189 process will resume.
A monitoring committee will be established, consisting of union
leaders, and management under the chairmanship of a senior
commissioner of the Commission for Conciliation, Mediation and
Arbitration (CCMA), to ensure that the guarantees and undertakings
in the agreement are complied with.
“We have received satisfactory assurances from all employee
organisations – AMCU, NUM, Solidarity and UASA – that their
members have committed to compliance with the conditions. On this
basis, management feels comfortable to proceed with re-opening the
mine,” Harmony's chief executive officer, Graham Briggs, said
“Existing and established rights of engagement from both a labour
and employer perspective have been reinforced and we are pleased
that we can continue mining at Kusasalethu. Safety is our first
priority and we refuse to compromise on this value.”
For more details contact:
Investor Relations Officer
+27 (0) 82 759 1775 (mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)
14 February 2013
J.P. Morgan Equities South Africa Proprietary Limited.
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