IN THIS SECTION:

Joel

Joel mine, on the south-western edge of the Witwatersrand Basin, comprises two shafts, North and South. Since recommissioning the Joel plant in 2009, ore mined is now processed on site. Scattered mining takes place on the Beatrix Reef, down to a depth of some 1 400m.

Safety

Overall, safety performance improved in FY11. Regrettably, Joel recorded one fatality (FY10: one) with an LTIFR of 2.05 per million hours worked (FY10: 4.26).

More detailed information on safety performance and Harmony’s sustainable development concerns in South Africa can be found in the online sustainable development report.

Joel employed 1 554 people in FY11 (including 101 contractors).

Detailed information on Joel’s resources and reserves appears in the mineral resources and reserves section of the annual report.

Operations review

Grade decreased by 23% with a 7% decrease in volumes milled to 407 000 tonnes in FY11. This resulted in an overall decline of 28% in gold produced to 1 449kg (46 586oz). The decrease in production stems mainly from the shaft stoppage in July and August 2010, and the process of equipping the lift shaft which was completed by end-FY11.

While production at Joel has progressively moved to the deeper portions of the mine, some 1 400 metres below surface, access to these areas is via North shaft, which was never fully equipped for this. Accordingly, retrospective adjustments to shaft spillage arrangements have included changing the winder from sinking to production mode; installing larger skips; ensuring emergency egress was available; raise boring the lift shaft from 121 to 129 level; and improving cleaning arrangements at the shaft bottom.

After excessive spillage at the bottom of North shaft at the end of the prior year, which cost Joel 43 production days in the first quarter of the review period, the shaft-bottom rehabilitation process was completed in 50 days (rather than the planned 59 days) with production resuming in September 2010. A permanent spillage arrangement (spillage skip) was installed by December 2010.

Performance was hampered mid-year as the higher grades on 129 level could not be accessed until the lift shaft was commissioned. The lift shaft is an integral part of the logistics of mining at Joel, and was only equipped to 121 level. To facilitate future production for mining below 121 level, we decided to ream and equip the lift shaft to 129 level. A sub-level was developed on 121 level for access to the conveyance only, giving us time to equip the raise bore shaft to 129 level. Equipping of the lift shaft was completed at the end of June 2011.

The mining support design has changed with the shaft changing from shallow to intermediate depth. This will impact on the face advance as well as the costs per square metre. The face time and tramming time will decrease in FY12 with the completion of the lift shaft and mining raises being concentrated closer to the lift shaft.

To ensure production targets are met, plans are in place to ensure the operability of North shaft through a planned maintenance programme to minimise breakdowns, maintain blast advances and assess the feasibility of mining below 129 level. Supported by a successful drilling programme in 2009 and pre-feasibility study in 2010, a feasibility study on possible mining of 137 level and testing the upside potential of 145 level was completed by the end of the review period.

Financial review

Revenue decreased by 13% to R454 million and by 6% to US$65 million, despite an increase in the gold price year on year. Cash operating costs in rand terms rose by 51% to R291 288/kg mainly due to the total stoppage of the shaft in July and August 2010. Operating profit was down by 74% to R37 million (US$5 million). Capital expenditure of R73 million was 17% lower than FY10 mainly due to a drop in ongoing capital development metres after the shaft stoppage in 2010.

Key statistics

Production		FY11	FY10	FY09
Volumes milled	000t (metric)	407	439	513
	000t (imperial)	448	484	566
Gold produced	kg	1 449	2 006	2 043
	oz	46 586	64 495	65 684
Average grade	g/t	3.56	4.57	3.98
	oz/t	0.104	0.133	0.116
Financial
Revenue	R million	454	524	503
	US$ million	65	69	56
Operating cost*	R/kg	291 288	193 019	183 925
	US$/oz	1 297	792	636
Operating profit	R million	37	145	137
	US$ million	5	19	15
Capital expenditure	R million	73	88	56
	US$ million	11	10	6
People
Number of employees
Employees		1 453	1 436
Contractors		101	34
Total		1 554	1 470
HDSAs in management	%	47	50
Women in mining	%	11	10
Expenditure on training and development	R million	4.6	6
Safety
fatalities		1	1
LTIFR	per million hours worked	2.05	4.26
Environment
Electricity used	000MWh	108	79
Water used for primary activities	000m³	722	682
GHG emissions	000t CO₂e	121	94
Expenditure on local economic development	R million	5	3
Status of mining right	New-order mining right granted in December 2007

* Includes royalty payment in FY10 and FY11.

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