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Kusasalethu

Our operations

Kusasalethu

Kusasalethu is located about 90 kilometres from Johannesburg, near the provincial border of Gauteng and North West Province. Kusasalethu is situated in the West Witwatersrand Basin and mines the Ventersdorp Contact Reef as its main ore body. The mine comprises twin vertical and twin sub-vertical shaft systems and uses conventional mining methods in a sequential grid layout. Mining is conducted at a depth of 3 388 metres, making it Harmony’s deepest mine. Ore mined is treated at the Kusasalethu plant.

Performance FY16

Kusasalethu was restructured during FY15. Levels on the old mine were abandoned and the revised mine plan focused on mining lower volumes at higher grades. The waste and reef splitting system (waste ore pass system) to improve gold recoveries was finalised in FY16.

During the second half of FY16, management decided to stop production at the mine for a total period of 21 days in order to perform major engineering infrastructure upgrades. Production was negatively impacted by these stoppages. This was necessary to ensure access to high-grade reserves and to improve safety at the mine.

Negative cash flows in FY16 and previous financial years necessitated a revision of the life-of-mine plan. In order to optimise cash flow, the focus now is on accessing higher grade ore zones and a shorter life-of-mine. The aim is to increase the profitability and operating margin of the operation and to generate positive cash flows. Studies are underway to determine the viability of deepening the mine into the high-grade pay area below the 113 level.

Challenges at the mine include engineering infrastructure, maintaining efficiencies at the metallurgical plant, eliminating illegal mining and gold theft, and producing sufficient backfill at the plant for operational support.

More detailed information on safety performance can be found in the Integrated annual report.

Key statistics

    FY16 FY15 FY14
Number of employees        
– Permanent   3 944 3 898 5 139
– Contractors   539 1 020 1 302
Total   4 483 4 918 6 441
Operational        
Volumes milled (000t) (metric) 668 908 1 143
  (000t) (imperial) 736 1 001 1 260
Gold produced (kg) 3 863 3 953 4 694
  (oz) 124 198 127 092 150 916
Gold sold (kg) 3 822 4 297 4 531
  (oz) 122 880 138 151 145 673
Grade (g/t) 5.78 4.35 4.11
  (oz/t) 0.169 0.127 0.120
Productivity (g/TEC) 77.80 65.59 73.60
Development results        
Total metres (excl. capital metres)   7 183 13 777 15 077
Reef metres   1 517 2436 3 107
Capital metres   0 59 -
Financial        
Revenue (Rm) 2 078 1 939 1 959
  (US$m) 143 169 189
Average gold price received (R/kg) 543 633 451 211 432 358
  (US$/oz) 1 166 1 226 1 299
Cash operating cost (Rm) 1 848 1 866 1 830
  (US$m) 127 163 177
Production profit/(loss) (Rm) 262 (57) 206
  (US$m) 18 (5) 20
Capital expenditure (Rm) 360 463 509
  (US$m) 25 40 49
Cash operating cost (R/kg) 478 277 472 112 389 762
  (US$/oz) 1 026 1 283 1 171
All-in sustaining cost (R/kg) 584 498 594 399 522 347
  (US$/oz) 1 254 1 615 1 570
Safety        
Number of fatalities   2 1 3
Lost-time injury frequency rate per million hours worked   7.06 25.80 9.56
Environmental        
Electricity consumption (GWh) 611 682 664
Water consumption – primary activities (ML) 1 671 1 342 1 418
greenhouse gas emissions (000t CO2e) 620 702 660
Intensity data per tonne treated        
– energy   0.91 0.75 0.58
– water   2.50 1.48 1.23
– greenhouse gas emissions   0.91 0.77 0.58
Number of reportable environmental incidents   1 1 2
Community        
Local economic development * (Rm) 5 30 65
Training and development (Rm) 26 50 37

* Included in the total for FY15 is an amount of R18 million that was capitalised as part of the hostel upgrades (FY16: R0 million)

Other salient features  
Status of operation Positioned for profitability
Life of mine 5 years
Hoisting capacity (per month) 200 000 tonnes (220 460 tons)
Compliance and certification New order mining right – December 2007
ISO 14001
ISO 9001
Cyanide Code

Mineral reserves as at 30 June 2015

  Proved reserves Probable reserves Total mineral reserves
Reserves (metric) Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
  3.8 7.15 27 0.2 5.31 1 4.0 7.16 28
Reserves (imperial)) Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
  4.2 0.209 878 0.2 0.155 36 4.4 0.206 914

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Recent news

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Annual report

Integrated annual report 2016
Integrated annual report 2016

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Investor brief

Harmony Investor brief, November 2016
Harmony Investor brief -
November 2016

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