As at 30 June 2011 attributable gold mineral resources are 163.9Moz. Harmony’s PNG resources represent 10% of Harmony’s total resources at 16.3Moz – a 51% increase in the total amount of resources from PNG, largely due to the significant increase in the Wafi-Golpu resource (jointly (50/50) held by Harmony and Newcrest Mining Limited in the Morobe Mining Joint Ventures, MMJV).
We use certain terms in this report such as ‘measured’, ‘indicated’ and ‘inferred’ resources, which SEC guidelines strictly prohibit US-registered companies from including in their filings with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F.
In converting the mineral resources to mineral reserves the following parameters were applied:
- A gold price of US$1 150/oz
- An exchange rate of US$/ZAR7.57 for South Africa
- These parameters resulted in a gold price of R280 000/kg
- The Hidden Valley mine and Wafi-Golpu project in the MMJV used prices of A$1 133/oz Au, A$18.00/oz Ag, A$18.00/lb Mo and A$3.34/lb Cu at an exchange rate of US$/A$0.75 and PGK/A$2.30.
Auditing
Harmony’s mineral resources and mineral reserves have been comprehensively audited by a team of internal competent persons that functions independently of the operating units. The internal audit team verifies compliance with the Harmony code of resource blocking, valuation, classification, cut-off calculations, development of life-of-mine plans and SAMREC sheets which support Harmony’s annual mineral resource and mineral reserve statement. This audit process is specifically designed to comply with the requirements of internationally recognised procedures and standards such as:
- South African Code for Reporting Mineral Resources and Mineral Reserves – SAMREC Code
- Industry Guide 7 of the United States Securities Exchange Commission
- Sarbanes-Oxley requirements
- Australian Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves – the JORC Code, which complies to the SAMREC Code.
In addition to the internal audits, Harmony’s South African resources to reserves conversion process and two operations, Tshepong mine and Kusasalethu mine, 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 will be independently reviewed by AMC Consultants Proprietary Limited for compliance with the standards set out in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – the JORC Code.
Competent person’s declaration
Harmony employs an ore reserve manager at each of its operations who takes responsibility for reporting mineral resources and mineral reserves at his operation.
The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons:
Reserves and resources South Africa:
Jaco Boshoff, Pri Sci Nat, who has 16 years’ relevant experience and is registered with the South African Council for Natural Scientific Professions (SACNASP).
Reserves and resources PNG:
Stuart Hayward 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 Job, Francis and Kruger are corporate members of the Australian Institute of Mining and Metallurgy and Mr Hayward is a member of the Australian Institute of Geoscientists. All have relevant experience in the type and style of mineralisation for which they are reporting, and are competent persons 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 Mr Job are full-time employees of Harmony Gold Mining Company Limited and Mr Hayward is a full-time employee of Wafi-Golpu Services Limited. 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 on the Hidden Valley mine and Wafi-Golpu project.
Signed
Jaco Boshoff
24 October 2011
Signed
Greg Job
24 October 2011
Reconciliation FY10/FY11
Mineral resources
As at 30 June 2011, attributable gold mineral resources are 163.9Moz, down from 189.2Moz in 2010. This is a negative variance of 19.8Moz from South Africa and a positive variance of 5.5Moz from Papua New Guinea. The following graph shows the year-on-year reconciliation of the mineral resources.
Provisional mineral resources reconciliation: FY10 to FY11 |
| |
Gold
(tonnes) |
Gold
(Moz) |
| Balance at June 2010 |
5 885 |
189.2 |
| Reductions |
|
|
| Mined during FY2011 |
(56) |
(1.8) |
| Mine closures |
(205) |
(6.6) |
| Surface sources Free State |
(25) |
(0.8) |
| Rand Uranium equity (40%) non-current assets held for sale |
(162) |
(5.2) |
| Geological changes SA |
(510) |
(16.4) |
| Increases |
|
|
| Hidden Valley |
6 |
0.2 |
| Wafi-Golpu |
165 |
5.3 |
| Balance at June 2011 |
5 098 |
163.9 |
Mineral reserves
As at 30 June 2011, Harmony’s mineral reserves amounted to 41.6Moz of gold. The reserve declaration excludes Rand Uranium reserves (which is being held for sale), as well as some Evander projects which are no longer included in Harmony’s long-term mine plans. These exclusions, together with mine depletion, resulted in a decrease of 6.5Moz year on year. The year-on-year mineral reserve reconciliation is shown in the following graph:
Summary table: Mineral reserves |
| |
Gold
(tonnes) |
Gold
(Moz) |
| Balance at June 2010 |
1 496 |
48.1 |
| Reductions |
|
|
| Mined during FY11 |
(47) |
(1.5) |
| Mine closures |
(2) |
(0.1) |
| Rand Uranium equity (40%) non-current assets held for sale |
(37) |
(1.2) |
| Projects SA – Poplar and Libra |
(143) |
(4.6) |
| Increases |
|
|
| Geology and scope changes – SA |
27 |
0.9 |
| Balance at June 2011 |
1 294 |
41.6 |
|
