![Harmony [logo]](/i/logo.gif){kind=logo}
The Evander operation (now comprising Evander 8 shaft after closure of the 2, 5 and 7 shafts in FY10) mines the Kimberley Reef in the Evander Basin. Ore is milled and processed at the Kinross plant, using a hybrid carbon-in-pulp/carbon-in-leach (CIP/CIL) process. Evander 8 has an expected life-of-mine of around 11 years. A project to deepen this shaft, by means of an additional twin decline system down to 25 level and infrastructure extensions, is under way.
The behaviour-based safety initiative at Evander produced significant results in FY11, with a 50% improvement in safety indicators and a fatality-free year (FY10: two fatalities). The LTIFR improved to 3.72 per million hours worked (FY10: 7.41).
The Evander operation employed 2 970 people (including 423 contractors) in FY11.
Ore milled for the year totalled 541 000 tonnes, a decline of 31% on FY10. The main contributor was the closure of Evander 2, 5, 7 and 9 shafts, accounting for 208 000 tonnes in FY10, while Evander 8 shaft recorded a decrease of 7% compared to FY10. Lower production levels were expected for the first half of the year because of a ventilation constraint on the decline shaft. This together with a decline in grade to 4.26g/t (FY10: 4.41g/t) resulted in a 34% decrease in gold produced to 74 011oz.
Following the FY10 feasibility study that proved the viability of Evander 8, greater attention was given to re-engineering this shaft. This involves not just deepening the decline but repositioning it within the payshoot for immediate access to high-grade areas between 24 and 25 levels. The project’s parameters include optimising logistics, cooling and ventilation as well as an upgrade of the refrigeration plant. In our last annual report, we estimated that this project would yield 245kg (7 876oz) from 29 000tpm at an average grade of 8.56g/t per month. The results of these initiatives started to materialise in the last quarter of FY11.
Evander performed very well during the last quarter, as shown in the graphs below, with a substantial increase in recovery grade at 5.68g/t, due to improvements in the face grade. More mining crews were moved into the main payshoot of the decline section, where the grade is higher.
During FY11, the chilled water project was completed. This now pumps cold water from the 7 shaft refrigeration plant to 8 shaft, significantly reducing the heat load in the decline section and improving underground environmental conditions. In addition, much work went into electricity savings through load control on the compressors, and controlling the Winkelhaak water via 8 shaft. An external belting company was contracted for repairs and maintenance to conveyors on the decline, considerably reducing the number of conveyor belt breakdowns.
Ongoing improvements to ventilation at Evander will include a new raise borehole between 17 and 21 levels, more return airways and the installation of a second refrigeration plant at 18 level. This will improve both temperature and air quality, and enable Evander to operate to 25 level using the same ventilation infrastructure.
Following the closure of the Evander 2 and 5 shafts as well as the Winkelhaak plant, a short-term clean-up programme continued in FY11. The aim was to clean up any metal contained in the plant footprints, process rock from dumps in the vicinity, rehabilitate the Winkelhaak plant, and clean the surface rail network. In FY11, around 290 000 tonnes were treated via this programme at a recovered grade of 1.49g/t, yielding 432kg (13 889oz) of gold. Benefits from this programme are expected to contribute to Evander’s results for another year.
Revenue declined by 21% in rand terms to R717 million while production costs fell by 28% in rand terms to R622 million and in dollars terms to US$89 million. If this is compared for Evander 8 only, revenue increased by 9% to R717 million, while production costs rose by 7%. Unit costs rose by 7% to R266 542/kg and by 17% to US$1 186/oz, a result of reduced production, labour rate increases and higher electricity tariffs. Operating profit rose to R95 million (US$13 million).
Capital expenditure of R196 million was spent mostly on ongoing development (R57 million), major equipment maintenance (R22 million) and on shaft capital (R21 million) with the balance being spent on major project capital for Evander 8 (R96 million).
| Production | FY11 | FY10 | FY09 | |
|---|---|---|---|---|
| Volumes milled | 000t (metric) | 541 | 788 | 1 125 |
| 000t (imperial) | 596 | 869 | 1 241 | |
| Gold produced | kg | 2 302 | 3 475 | 5 912 |
| oz | 74 011 | 111 724 | 190 075 | |
| Average grade | g/t | 4.26 | 4.41 | 5.25 |
| oz/t | 0.12 | 0.13 | 0.15 | |
| Financial | ||||
| Revenue | R million | 717 | 910 | 1 514 |
| US$ million | 102 | 120 | 168 | |
| Operating cost* | R/kg | 266 542 | 248 190 | 165 377 |
| US$/oz | 1 186 | 1 018 | 572 | |
| Operating profit | R million | 95 | 51 | 516 |
| US$ million | 13 | 7 | 57 | |
| Capital expenditure | R million | 196 | 175 | 210 |
| US$ million | 28 | 23 | 24 | |
| People | ||||
| Number of employees | ||||
| Employees | 2 547 | 2 865 | ||
| Contractors | 423 | 466 | ||
| Total | 2 970 | 3 331 | ||
| HDSAs in management | % | 35 | 31 | |
| Women in mining | % | 8 | 8 | |
| Expenditure on training and development | R million | 14 | 22 | |
| Safety | ||||
| fatalities | 0 | 2 | ||
| LTIFR | per million hours worked | 3.72 | 7.41 | |
| Environment | ||||
| Electricity used | 000MWh | 280 | 397 | |
| Water used for primary activities | 000m3 | 4 463 | 5 267 | |
| GHG emissions | 000t CO2e | 288 | 491 | |
| Expenditure on local economic development | R million | 3 | 5 | |
| Status of mining right | New-order mining right granted in December 2007 | |||
* Includes royalty payment in FY10 and FY11.
© 2012 Harmony Gold Mining Company Limited Home | Privacy | Disclaimer