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Harmony and NUM reach agreement on Free State restructuring

Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced that an agreement has been signed with the National Union of Mineworkers (NUM) as to the implementation of job loss avoidance measures as part of the restructuring of the Free State operations.

The agreement sees the culmination of a 60-day consultative process during which every possible avenue to reduce the numbers of employees affected by the restructuring, and the amount of production lost, have been investigated. Harmony now has agreements with all of the major unions represented at its Free State operations. Harmony previously reached agreements in principle with the other two unions, UASA and Solidarity, on 21 June 2005.

“We are pleased to have successfully negotiated our way through what can only be described as a dramatic, difficult, but highly necessary process. All parties have done everything possible to mitigate the numbers of employees impacted. We are also pleased to now hopefully be in a position to return the company to the levels of sustainability that is in the interests of all stakeholders.” Commented Chief Executive Bernard Swanepoel.

Under the NUM agreement, the implementation of the agreement will take place from 20 July to 5 August 2005. The key methods to be employed at minimising the numbers of people affected are:

  • The replacement of non-specialised contractors.
  • The transfer of employees to vacancies in other parts of the South African operations.
  • The opening of voluntary retrenchments for the period starting 19 July 2005 and ending 5 August 2005.
  • The implementation of CONOPS at Tshepong, Bambanani and Masimong 5 shafts.

The implementation of the CONOPS agreement is subject to a successful Sunday work permission application and will be for a period of 14 months. The agreement also makes provision for a three-month notice period of termination of CONOPS from either party. The agreement provides for the monitoring of the implementation of the job loss avoidance measures and for dispute resolution under the auspices of the CCMA.

“We are pleased to have an implementable and sensible agreement with the NUM that is designed in the best interests of all stakeholders. The potential of the agreement if implemented successfully is enormous. This could lead to a saving of just over 7000 of the 11870 jobs potentially affected.” Bernard added.

For more details contact:

Bernard Swanepoel
Chief Executive
+27(0)83 303 9922

Ferdi Dippenaar
Marketing Director
+27(0)82 807 3684

Brenton Saunders
Executive, Investor Relations
+27(0)83 607 4060

Vusi Magadana
Investor Relations Officer
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
This email address is being protected from spambots. You need JavaScript enabled to view it.

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