Corporate profile

In South Africa, the company has ten underground and one open-pit mine and several other surface operations, exploiting gold-bearing reefs of the Witwatersrand Basin. In PNG, Harmony has a 50% interest in the Morobe Mining Joint Ventures (MMJV), which includes Hidden Valley, an open-pit gold and silver mine (officially opened in September 2010), the very exciting Wafi-Golpu project, and extensive exploration tenements. Harmony’s exploration portfolio focuses principally on highly prospective areas in PNG.

Significant capital expenditure in recent years has accessed the company’s extensive resources and extended the lives of its mines.

We have made good progress in getting the company where we want it to be – producing better-quality ounces. Hidden Valley in PNG is now an operating mine, Harmony’s first greenfields offshore development; in South Africa we have Kusasalethu, Doornkop and Phakisa projects, all in build-up, and Tshepong and Masimong which have been steady contributors to production. We dealt with the challenges at mines such as Evander, Target and Joel to ensure they are positioned to deliver on their production targets.

Harmony has invested a great deal in expanding its production base in South Africa and PNG. The investment in exploration continues to return great results, with the Wafi-Golpu resource showing a phenomenal 57% increase to over one billion tonnes during the year. Golpu’s grade is over 1% copper, confirming it is one of the highest-grade copper-gold porphyry systems in south-east Asia. These excellent results validate our long-held belief that PNG is a game-changing region for Harmony.

On a 100% basis, Golpu alone now hosts a resource of 869Mt, containing 19.3Moz of gold and 9.0Mt of copper (62Moz on a gold equivalent¹ basis). This is a significant year-on-year increase of 368Mt (73%), comprising 8.9Mt copper (88% increase) and 10.5Moz of gold (119% increase). Our resource base in PNG now represents 10% of Harmony’s total gold resources (or 21% of the resource on a gold equivalent1 basis), in line with Harmony’s strategy to increase its geographic diversification.

In FY11, Harmony produced 1.30Moz* of gold (FY10: 1.43Moz*). The company employed 39 440 people, largely in South Africa, of whom 34 472 were full-time employees and 4 968 contractors (FY10: 40 226 people, including contractors).

At 30 June 2011, Harmony reported ore reserves of 41.6Moz (FY10: 48.1Moz) and mineral resources of 163.9Moz (FY10: 189.2Moz).

Harmony’s corporate headquarters are in Randfontein, South Africa.

* Of this 19 967oz were capitalised in FY11 (FY10: 51 046oz).
¹ Gold equivalent based on US$1 150/oz Au, US$2.50/lb Cu at 100% recovery for both metals.