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Harmony provides update on restructuring of its Doornkop mine

  • Consultation with labour at Doornkop mine continues - job loss avoidance measures a priority
  • Engagement with relevant stakeholders at all levels

Johannesburg: Tuesday, 2 June 2015. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) advises that in line with its market update on the 8th of May 2015 to restructure its Doornkop mine, management is continuing its consultation process in terms of section 189A (“Section 189A”) of the Labour Relations Act, 66 of 1995 ("LRA") with organised labour and other relevant stakeholders to explore a possible restructuring of the mine.

Given the current gold price environment and the significant capital investment required to sustain operations at this shaft, all indications are that Doornkop will continue to make a loss in the foreseeable future unless it is restructured. Doornkop incurred an operating loss after capital of R210 million during financial 2014 and a further loss of R98 million during the nine months ended 31 March 2015.

Harmony chief executive officer Graham Briggs, said: “We have to take into consideration the long term sustainability of the company as a whole. The Doornkop mine continues to be a drain on the efforts and resources of Harmony, and we need to stem these losses. The decision to commence on this restructuring process has not been taken lightly. All stakeholders are being consulted in an effort to minimise job losses and to find a lasting and sustainable solution for Doornkop’s viability.”

On Sunday, 31 May 2015, an underground fire was reported at Doornkop. All employees were brought to safety and no one was injured. The fire occurred in an old mined out area where some cleaning operations had been taking place. The cause of the fire is not known at this stage. Production has been stopped for safety reasons and indications are that we can start production early next week again.

“The fire has been contained and we continue to monitor the gas readings. We will be able to extinguish the fire in the next couple of days, enabling production to recommence”, said Graham Briggs.

For more details contact:

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

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