HARMONY 2011
annual report
HARMONY
IN BRIEF
HARMONY IN BRIEF
Scope of this report
Strategy
Corporate profile
Key features 2011
Key statistics 2011
Materials issues
South African Mining Charter scorecard
Value-added statements
Our company at a glance
Risk table
Board of directors
Executive management
ANNUAL
REVIEWS
ANNUAL REVIEWS
Chairman's letter
Chief executive officer's review
Financial director's review
Independant assurance report
OPERATIONAL
REVIEW
OPERATIONAL REVIEW
Introduction
Build-up operations
Doornkop
Kusasalethu
Phakisa
Hidden Valley
Target
Steady-state operations
Tshepong
Masimong
Evander
Other South African operations
Bambanani
Virginia
Joel
Surface operations
Kalgold
Free State surface operations
Exploration overview
Mineral resources and mineral reserves
Mineral resource and reserve
Harmony's South African and Papua New Guinea assets
Relationship between Harmony's mineral resources amd mineral reserves according to the SAMREC code
Mineral resources statement (metric)
Mineral resources statement (imperial)
Mineral reserves statement (metric)
Mineral reserves statement (imperial)
Location of mining operations
Freestate operations
Doornkop
Kusasalethu
Evander
Kalgold
Papua New Guinea
Grade tonnage curves
Glossary of geological terms
GOVERNANCE
AND RISK
GOVERNANCE AND RISK
Corporate governance
Risk management
Remuneration report
FINANCIAL
REVIEW
FINANCIAL REVIEW
Company secretary certification
Directors’ report
Audit committee report
Independent auditors’ report
Group annual financial statements
Group income statements
Group statements of comprehensive income
Group balance sheets
Group statements of changes in shareholders’ equity
Group cash flow statements
Notes to the group financial statements
Company annual financial statements
Company income statements
Company statements of comprehensive income
Company balance sheets
Company statements of changes in shareholders’ equity
Company cash flow statements
Notes to the company financial statements
Annexure A
Investor relations
Glossary of terms
Directorate and administration
AGM
AGM
Company Information
Notice of Annual General Meeting
Explanatory notes
Annexure 1
Form of proxy
Directions
Mineral resources and mineral reserves
Mineral resources statement (imperial)
Operations
Measured resources
Indicated resources
Inferred resources
Total mineral resources
Gold
Tons
(Mt)
Grade
(oz/t)
Gold
(000oz)
Tons
(Mt)
Grade
(oz/t)
Gold
(000oz)
Tons
(Mt)
Grade
(oz/t)
Gold
(000oz)
Tons
(Mt)
Grade
(oz/t)
Gold
(000oz)
SA underground
Free State
Bambanani
16.1
0.339
5 453
5.2
0.273
1 411
2.4
0.257
625
23.7
0.316
7 489
Joel
5.2
0.214
1 119
7.7
0.214
1 642
10.9
0.183
1 989
23.8
0.200
4 750
Masimong
11.5
0.228
2 610
6.0
0.201
1 198
81.8
0.175
14 352
99.2
0.183
18 160
Phakisa
2.1
0.326
687
23.1
0.317
7 336
31.0
0.228
7 073
56.2
0.269
15 096
Target
Target 1
9.0
0.231
2 087
14.1
0.228
3 212
5.7
0.189
1 072
28.8
0.221
6 371
Target 2
0.0
0.471
20
0.1
0.455
67
–
–
–
0.2
0.458
87
Target 3
12.1
0.247
2 987
10.0
0.228
2 268
5.2
0.156
816
27.3
0.222
6 071
Total
21.2
0.240
5 094
24.2
0.229
5 547
10.9
0.174
1 888
56.3
0.223
12 529
Freddies 9
3.8
0.279
1 046
3.3
0.267
893
33.5
0.194
6 493
40.6
0.208
8 432
Tshepong
14.2
0.309
4 379
11.4
0.305
3 478
12.5
0.349
4 372
38.1
0.321
12 229
Unisel
8.8
0.177
1 565
8.4
0.164
1 385
13.4
0.160
2 146
30.7
0.166
5 096
Total Free State underground
82.9
0.265
21 953
89.4
0.256
22 890
196.3
0.198
38 938
368.5
0.227
83 781
Doornkop
Doornkop Kimberley Reef
4.4
0.067
297
8.3
0.071
582
–
–
–
12.7
0.069
879
Doornkop South Reef
1.6
0.233
362
2.8
0.223
617
21.2
0.244
5 158
25.5
0.241
6 137
Total
6.0
0.110
659
11.0
0.109
1 199
21.2
0.244
5 158
38.2
0.184
7 016
Kusasalethu
11.1
0.306
3 391
25.5
0.261
6 670
1.6
0.272
440
38.2
0.275
10 501
Evander
Evander 8
3.3
0.411
1 362
2.4
0.465
1 104
11.5
0.292
3 360
17.2
0.339
5 826
Evander (below infrastructure)
Evander South
–
–
–
26.3
0.156
4 107
44.6
0.090
4 006
70.9
0.114
8 113
Rolspruit
–
–
–
32.1
0.338
10 847
5.4
0.166
902
37.5
0.313
11 749
Poplar
–
–
–
23.6
0.197
4 653
12.8
0.170
2 181
36.5
0.187
6 834
Total below infrastructure
–
–
–
82.0
0.239
19 607
62.8
0.113
7 089
144.9
0.184
26 696
Total Evander
3.3
0.411
1 362
84.4
0.245
20 711
74.3
0.141
10 449
162.1
0.201
32 522
Total SA underground
103.3
0.265
27 365
210.3
0.245
51 470
293.4
0.187
54 985
607.0
0.220
133 820
SA surface
Kalgold
27.7
0.028
779
64.7
0.027
1 766
40.0
0.027
1 085
132.4
0.027
3 630
Free State surface
Phoenix
121.6
0.01
980
–
–
–
–
–
–
121.6
0.008
980
St Helena
284.0
0.01
2 131
–
–
–
–
–
–
284.0
0.008
2 131
Other:
Waste rock
dumps
–
–
–
7.5
0.015
115
34.2
0.013
454
41.7
0.014
569
Slimes dams
–
–
–
685.9
0.007
4 481
16.4
0.006
91
702.3
0.007
4 572
Subtotal other
–
–
–
693.4
0.007
4 596
50.7
0.011
545
744.1
0.007
5 141
Total Free State surface
405.6
0.01
3 111
693.4
0.007
4 596
50.7
0.011
545
1 149.7
0.007
8 252
Evander surface
Libra Project
–
–
–
223.7
0.008
1 897
–
–
–
223.7
0.008
1 897
Total SA surface
433.3
0.009
3 890
981.8
0.008
8 259
90.7
0.018
1 630
1 505.7
0.009
13 779
Grand total SA
536.5
31 255
1 192.1
59 729
384.1
56 615
2 112.7
147 599
Papua New Guinea
1
Hidden Valley
4.4
0.051
226
49.7
0.045
2 222
8.9
0.034
299
63.0
0.044
2 747
Hamata
0.0
0.095
1
3.2
0.064
204
0.6
0.074
44
3.8
0.066
249
Wafi
–
–
–
34.8
0.058
2 012
22.0
0.050
1 112
56.9
0.055
3 124
Golpu
–
–
–
412.8
0.019
7 947
66.0
0.026
1 712
478.8
0.020
9 659
Nambonga
–
–
–
–
–
–
21.9
0.023
505
21.9
0.023
505
Total Papua New Guinea
4.5
0.051
227
500.5
0.025
12 385
119.4
0.031
3 672
624.4
0.026
16 284
Grand total
541.0
31 482
1 692.6
72 114
503.5
60 287
2 737.1
163 883
Silver
Tons
(Mt)
Grade
(oz/t)
Silver
(000oz)
Tons
(Mt)
Grade
(oz/t)
Silver
(000oz)
Tons
(Mt)
Grade
(oz/t)
Silver
(000oz)
Tons
(Mt)
Grade
(oz/t)
Silver
(000oz)
Papua New Guinea
1
Hidden Valley
4.4
0.840
3 737
49.7
0.911
45 267
8.9
0.695
6 156
63.0
0.876
55 160
Copper
Tons
(Mt)
Grade
(%)
Cu
(Mlb)
Tons
(Mt)
Grade
(%)
Cu
(Mlb)
Tons
(Mt)
Grade
(%)
Cu
(Mlb)
Tons
(Mt)
Grade
(%)
Cu
(Mlb)
Papua New Guinea
1
Golpu
–
–
–
412.8
0.925
8 421
66.0
0.998
1 451
478.8
0.935
9 873
Nambonga
–
–
–
21.9
0.191
92
21.9
0.191
92
Total
–
–
–
412.8
0.925
8 421
87.9
0.796
1 543
500.7
0.903
9 965
Molybdenum
Tons
(Mt)
Grade
(lb/t)
Mo
(Mlb)
Tons
(Mt)
Grade
(lb/t)
Mo
(Mlb)
Tons
(Mt)
Grade
(lb/t)
Mo
(Mlb)
Tons
(Mt)
Grade
(lb/t)
Mo
(Mlb)
Papua New Guinea
1
Golpu
–
–
–
412.8
0.198
82
66.0
0.152
10
478.8
0.192
92
Uranium
Tons
(Mt)
Grade
(g/t)
U3O8
(Mlb)
Tons
(Mt)
Grade
(g/t)
U3O8
(Mlb)
Tons
(Mt)
Grade
(g/t)
U3O8
(Mlb)
Tons
(Mt)
Grade
(g/t)
U3O8
(Mlb)
SA underground
Free State
Masimong
4.2
0.567
2
8.8
0.512
4
80.4
0.318
26
93
0.347
32
Tshepong
5.6
0.398
2
19.0
0.414
8
13.6
0.188
3
38
0.331
13
Phakisa
2.4
0.526
1
19.3
0.405
8
29.7
0.382
11
52
0.398
20
Total
12.2
0.482
6
47.1
0.429
20
123.7
0.319
39
183
0.358
66
Total SA underground
12.2
0.482
6
47.1
0.429
20
123.7
0.319
39
183
0.358
66
SA surface
Free State Region
–
–
–
436.0
0.152
66
–
–
–
436.0
0.152
66
Total SA surface
–
–
–
436.0
0.152
66
–
–
–
436.0
0.152
66
Grand total
12.2
0.482
6
483.1
0.179
86
123.7
0.319
39
619.0
0.213
132
1
Represents Harmony’s equity portion of 50%.
NB Rounding of numbers may result in slight computational discrepancies.
Note: 1 ton = 907kg = 2 000lb.
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