Annual report 2008

Corporate profile

In FY08, Harmony produced 1.55 million ounces of gold, making it one of the world’s largest gold mining companies. The group’s operations are located primarily on the Witwatersrand Basin in South Africa, encompassing ten underground operations, an open-pit mine and surface operations that encompass four provinces, Gauteng, North West Province, Mpumalanga and the Free State.

In FY08, Harmony announced the formation of Rand Uranium (Pty) Ltd (Rand Uranium), a focused uranium company that will turn to account the substantial uranium-rich material held by the group at its Randfontein operations. Harmony will hold a 40% stake in Rand Uranium, with Pamodzi Resources Fund holding the balance.

Also in FY08, the group announced the Morobe Mining Joint Venture entered into with Newcrest Mining Limited (Newcrest) of Australia, in which Newcrest will earn up to 50% of Harmony’s projects in Papua New Guinea (PNG) by contributing a maximum of $525 million in two phases (refer to ‘A new partnership: Harmony and Newcrest in PNG’).

Harmony’s exploration portfolio is largely focused on highly prospective areas in PNG, including the Wafi-Golpu project, although renewed exploration activity has begun in South Africa.

As at the end of June 2008, the company employed 48 676 people, largely in South Africa, comprising 41 521 full-time employees and 7 155 contractors.

The group’s primary listing is on the JSE Limited (share code: HAR) in South Africa. Harmony’s ordinary shares are also listed on stock exchanges in London (HRM), Paris (HMY) and Berlin (HAM1), and are quoted in the form of American Depositary Receipts on the New York and Nasdaq exchanges (HMY), and as International Depositary Receipts on the Brussels exchange (HG). Harmony's’ shareholders are located around the world, with the largest bases being in South Africa (39%), North America (39%), the United Kingdom (14%) and Switzerland (4%).

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  • Harmony at a glance

Harmony at a glance

South Africa

Globe indicating South Africa

Underground operations

Free state

  • Production: 4 945kg
  • Cash cost per kg: R149 792
  • Ore reserves at year-end: 37t
  • Cash operating profit: R191 million
  • Capital expenditure: R107 Million
  • Production: 1 904kg
  • Cash cost per kg: 149 305
  • Ore reserves at year-end: 13t
  • Cash operating profit: R91 million
  • Capital expenditure: R39 million
  • Production: 3 657kg
  • Cash cost per kg: R174 080
  • Ore reserves at year-end: 23t
  • Cash operating profit: R61 million
  • Capital expenditure:R114 million
  • Production: 131kg
  • Cash cost per kg: R130 221
  • Ore reserves at year-end: 166t
  • Cash operating profit: R11 million
  • Capital expenditure: R293 million
  • Production: 2 644kg
  • Cash cost per kg: R141 027
  • Ore reserves at year-end: 132t
  • Cash operating profit: R129 million
  • Capital expenditure: R256 million
  • Production: 8 495kg
  • Cash cost per kg: R106 658
  • Ore reserves at year-end: 142t
  • Cash operating profit: R715 million
  • Capital expenditure: R195 million
Virginia operations*
Virginia operations*  
  • Production: 7 786kg
  • Cash cost per kg: R174 091
  • Ore reserves at year-end: 35t
  • Cash operating profit: R180 million
  • Capital expenditure: R152 million

* Virginia includes Harmony 2, Merriespruit 1 and 3, Brand and Unisel


  • Production: 1 373kg
  • Cash cost per kg: R164 099
  • Ore reserves at year-end: 6t
  • Cash operating profit: R33 million
  • Capital expenditure: R349 million
  • Production: 4 934kg
  • Cash cost per kg: R152 171
  • Ore reserves at year-end: 268t
  • Cash operating profit: R213 million
  • Capital expenditure: R318 million


  • Production: 7 466kg
  • Cash cost per kg: R122 598
  • Ore reserves at year-end: 440t
  • Cash operating profit: R486 million
  • Capital expenditure: R242 million

** Evander includes Evander 2, 5, 7 and 8 shafts

Surface operations

Kalgold (open cast)
  • Production: 2 898kg
  • Cash cost per kg: R95 939
  • Ore reserves at year-end: 12t
  • Cash operating profit: R279 million
  • Capital expenditure: R10 million
Phoenix Project (Surface)
  • Production: 1 002kg
  • Cash cost per kg: R75 184
  • Cash operating profit: R102 million
  • Capital expenditure: R4 million
Other (Surface)
  • Production: 732kg
  • Cash cost per kg: R98 100
  • Cash operating profit: R97 million
  • Capital expenditure: R136 million

Papua New Guinea

Globe indicating South Africa

Morobe Province

Morobe Joint venture

Kalgold (open cast)
  • A gold-silver project
  • Production to begin: mid-2009
  • Forecast annual full production:250 000oz of gold
  • 4 million ounces of silver
  • Expected life-of-mine: 14 years
  • A gold-copper deposit
  • Pre-feasibility study began: FY08
  • 3 276km2 of exploration tenements

© Harmony Annual Report 2008