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Mineral Resources and Mineral Reserves Statement update, as at 30 June 2010

Harmony maintains reserves at 48 million ounces while focusing on better quality ounces to realise safe, profitable and sustainable operations

Johannesburg, Monday, 2 August 2010. Harmony Gold Mining Company Limited (Harmony) is pleased to publish its Statement of Mineral Resources and Mineral Reserves as at 30 June 2010, which has been produced in accordance with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC Code) and the Australian Code (JORC Code). The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves.

Graham Briggs, Chief Executive Officer of Harmony, notes that, “Careful, considered restructuring of Harmony’s asset base focusing on better-quality ounces is in line with Harmony’s strategy to produce profitable and sustainable operations. At the end of June 2010, Harmony’s attributable gold mineral reserve was maintained at 48.1 million ounces, which is similar to the previous year’s declared reserve, despite shaft closures and depletion which occurred during the year. Attributable gold mineral resources declined by 9% to 189.2 million ounces.”

Briggs, says that steps taken to improve the quality of Harmony’s portfolio have included:

  • closure of the Brand 3, Merriespruit 3, Harmony 2, Evander 2,5 and 7 shafts (a total of six shafts) due to their ore bodies having reached the end of their economic lives;
  • continued investment in exploration and development at the company’s Phakisa, Kusasalethu, Doornkop and Hidden Valley growth projects, reaffirming their robust life-of-mine plans and reserve positions;
  • acquisition of the Free State assets of Pamodzi Gold Mining Limited which includes President Steyn 1 and 2 shafts, Lorraine 3, Freddies 7 and 9, the Steyn plant and surface stockpiles;
  • an international exploration program resulting in the discovery of a new zone of mineralization adjacent to the main Golpu resource;
  • the reassessment of the Evander operations and projects. Following a review of the economic viability of the Evander South project under various economic scenarios, it was decided to exclude it from Harmony’s reserves, while the Libra project, (retreating the Evander tailings) has been included in the reserve statement;
  • the sale of the Mount Magnet project, in Western Australia, which allows us to focus on growing, developing and operating our portfolio of quality assets in Papua New Guinea.

In converting the Mineral Resources to Mineral Reserves the following parameters were applied:

  • a gold price of US$950/oz
  • an exchange rate of USD/ZAR 8.19 for South Africa
  • the above parameters resulted in a gold price of R250 000/kg
  • For the Papua New Guinea joint venture operations held within the Morobe Mining Joint Venture, prices of AUD$1000/oz Au, AUD$15.33/oz Ag, AUD$5,883/ton copper and AUD$17.33/lb Molybdenum were used with an exchange rate of PGK/AUDK2.30.

Harmony’s South African resources and reserves (excluding Rand Uranium) were reviewed and audited by SRK Consulting Engineers and Scientists for compliance with the South African Code for Reporting Mineral Resources and Mineral Reserves – SAMREC Code (2008), Industry Guide 7 of the United States Securities Exchange Commission and Sarbanes-Oxley requirements. Harmony’s Papua New Guinea Mineral Resources and Mineral Reserves were independently reviewed by AMC Consultants Pty Ltd for compliance with the standards set out in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code.

The company’s detailed resource and reserve declaration will be published in the FY2010 annual report, which will be made available to shareholders towards the end of September 2010. The annual report will also include the latest update on Harmony’s uranium resources.

We use certain terms in this press release such as ‘measured’, ‘indicated’ and ‘inferred’ resources, which the United States’ Securities and Exchange Commission (SEC) guidelines strictly prohibit US-registered companies from including in their filings with the SEC. US investors are urged to closely consider the disclosure in our Form 20-F.

Mineral Resources statement

The following tables summarise the Mineral Resources for the South African and Papua New Guinea operations and projects:

South Africa

SA underground operations
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Measured137.97.1698831 769
Indicated193.76.391 23839 796
Inferred452.54.532 04965 887
Total784.15.454 275137 452
SA projects below infrastructure
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Measured----
Indicated70.18.9062420 077
Inferred45.43.361534 908
Total115.56.7377724 985
SA surface
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Measured155.90.41642 065
Indicated1 248.00.2935611 471
Inferred234.10.32742 392
Total1 638.00.3049515 928

Papua New Guinea*

Hidden Valley and Hamata
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Measured4.32.079287
Indicated36.01.76632 040
Inferred11.31.3315486
Total51.61.69872 813
Wafi/Golpu/Nambonga
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Measured----
Indicated76.71.20922 952
Inferred245.10.641565 044
Total321.80.772487 996

* Represents Harmony’s 50% equity portion.

In addition to the gold resources, Harmony also reports its equity (50%) portion of resources for silver, copper and molybdenum from its PNG operations.

Silver
 Tonnes (Mt)g/tAg (‘000 Kg)Ag(‘000 Oz)
Measured4.235.01474 735
Indicated33.133.41 10535 511
Inferred10.931.134010 922
Total48.233.01 59251 168
Copper
 Tonnes (Mt)%Cu (‘000 t)Cu (M lbs)
Measured    
Indicated44.81.386211 369
Inferred225.30.801 8063 982
Total270.10.902 4275 351
Molybdenum
 Tonnes (Mt)ppmMo (‘000 t)Mo (M lbs)
Measured    
Indicated44.8107.72511
Inferred205.4111.302350
Total250.2110.682861

Mineral Reserve statement

The following table shows more detail of the year-on-year re serve reconciliation:

Mineral Reserve reconciliation: FY2009 to FY2010
 Gold (tonnes)Gold (million Oz)
Balance at June 20091 49848.2
Reductions  
   Mined during FY2010(54)(1.7)
   Mine closures(13)(0.4)
   Projects (Evander South)(53)(1.7)
   Geology and scope changes(14)(0.5)
Increases  
   New acquisitions361.2
   Rand Uranium equity (40%)371.2
   Projects (Libra)591.9
Balance at June 20101 49648.1

The following tables show the Mineral Reserves for the South African and Papua New Guinea operations and projects:

SA underground operations
 Tonnes (Mt)g/t Gold (‘000 Kg) Gold (‘000 Oz)
Proved50.96.043089 901
Probable76.96.2448015 421
Total127.96.1678825 322
SA projects below infrastructure
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Proved    
Probable42.37.283089 895
Total42.37.283089 895
SA surface
 Tonnes (Mt)g/t Gold (‘000 Kg)Gold (‘000 Oz)
Proved52.50.5127861
Probable1 145.60.262959 494
Total1 198.10.2732210 355

Papua New Guinea*

Hidden Valley and Hamata
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Proved3.82.138260
Probable27.21.80491 578
Total31.01.84571 838
Wafi/Golpu/Nambonga
 Tonnes (Mt)g/tGold (‘000 Kg)Gold (‘000 Oz)
Proved    
Probable35.40.6121694
Total35.40.6121694

* Represents Harmony’s 50% equity portion

In addition to the gold reserves, Harmony also reports its equity (50%) portion of reserves for silver, copper and molybdenum from its PNG operations.

Silver
 Tonnes (Mt)g/tAg (‘000 Kg)Ag(‘000 Oz)
Proved3.835.581344 320
Probable24.335.5286227 726
Total28.135.5399632 046
Copper
 Tonnes (Mt)%Cu (‘000 t)Cu (M lbs)
Proved    
Probable35.41.13400882
Total35.41.13400882
Molybdenum
 Tonnes (Mt)ppmMo (‘000 t)Mo (M lbs)
Proved    
Probable35.4121.0049
Total35.4121.0049

The Mineral Resources and Mineral Reserves in the summary tables are based on information compiled by the following competent persons:

Reserves and Resources South Africa:

Jaco Boshoff, Pri.Sci.Nat who has 15 years relevant experience and is registered with the South African Council for Natural Scientific Professions.

Reserves and Resources PNG:

Michael Smith for the Wafi Golpu Mineral Resources, Gregory Job for the Golpu Mineral Reserve, James Francis for the Hidden Valley Mineral Resources and Anton Kruger for the Hidden Valley Mineral Reserve. Messers Smith, Job, Francis and Kruger are corporate members of the Australian Institute of Mining and Metallurgy and have relevant experience in the type and style of mineralisation for which they are reporting, and are 'CompetentPersons' as defined by the code.

These competent persons consent to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mr Boshoff and and Mr Job are full-time employees of Harmony Gold Mining Company Limited Ltd and Mr Smith is a full time employee of Harmony Gold (PNG Services) (Pty) Ltd. Mr Francis and Mr Kruger are full-time employees of Newcrest Mining Limited. Newcrest is Harmony’s joint venture partner in the Morobe Mining Joint Venture in respect of the Hidden Valley mine.

For more details contact:

Graham Briggs
Chief Executive Officer
+27 (0)83 265 0274

Jaco Boshoff
Executive : Reserves and Resources
+27 (0)83 395 3810

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

Annual report

Integrated annual report 2016
Integrated annual report 2017

(HTML & PDFs)

Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

(PDF - 6.5MB)

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