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Ongoing industrial action at Kusasalethu

Labour court grants interdict – employees to return to work

Johannesburg, Monday. 3 April 2017: Harmony Gold Mining Company Limited (“Harmony”) advises that unprotected industrial action at Kusasalethu has continued, despite various labour agreements reached with the Association of Mineworkers and Construction Union (AMCU). As a result, Harmony approached the Labour Court of South Africa on Friday, 31 March 2017, to obtain an interdict – which was granted - declaring ongoing industrial action at Kusasalethu led by AMCU to be unprotected, and requiring employees to return to work.

Harmony and recognised unions – including AMCU - have entered into various labour agreements since 2013.  Despite reaching these agreements, AMCU and its members have since the beginning of 2017 continued to disrupt operations, threatening the safety of Harmony’s employees and impacting negatively on production.  AMCU and its members have ignored the court order granted on Friday, with no employees reporting for work over the weekend or today.  An ultimatum has now been issued to Kusasalethu employees to return to work tomorrow night, failing which they may be subject to disciplinary action.

These actions have had significant implications to the viability of Kusasalethu. Approximately 7 to 10 days of gold production have been lost since the 21st of March 2017 to date, at a rate of 15kg of gold production per day. Security measures at the mine have been increased to address complaints of intimidation and potential violence.

“Continuing with unprotected industrial action poses a real threat to the continued viability of the Kusasalethu mine. Given the history of this mine and the serious impact that continued production interruptions could have on the lives of our employees and their families, we call on AMCU to show responsible leadership.  We urge employees at Kusasalethu to return to work,” said Peter Steenkamp, CEO of Harmony.

For more details contact:

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 71 607 1498 (mobile)

Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited.

Harmony Gold Mining Company Limited (Harmony), a world-class gold mining and exploration company, has operations and assets in South Africa and Papua New Guinea (PNG). Harmony, which has more than 60 years’ experience in the industry, is the third largest gold producer in South Africa. Our assets include one open pit mine and several exploration tenements in PNG, as well as 9 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, we own 50% of the significant Golpu project in a joint venture in PNG.

The company’s primary stock exchange listing is on the JSE with a secondary listing on the New York Stock Exchange. The bulk of our shareholders are in South Africa and the United States. Additional information on the company is available on the corporate website, www.harmony.co.za.

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