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 (metric)
Operations
Measured resources
Indicated resources
Inferred resources
Total mineral resources
Gold
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
SA underground
Free State
Bambanani
14.6
11.62
170
4.7
9.37
44
2.2
8.81
19
21.5
10.84
233
Joel
4.8
7.33
35
7.0
7.33
51
9.8
6.28
62
21.6
6.85
148
Masimong
10.4
7.81
81
5.4
6.89
37
74.2
6.02
446
90.0
6.28
565
Phakisa
1.9
11.17
21
21.0
10.87
228
28.1
7.83
220
51.0
9.21
470
Target
Target 1
8.2
7.92
65
12.8
7.80
100
5.1
6.49
33
26.1
7.58
198
Target 2
0.0
15.94
1
0.1
15.61
2
–
–
–
0.2
15.69
3
Target 3
11.0
8.45
93
9.0
7.81
71
4.7
5.37
25
24.8
7.63
189
Total
19.2
8.24
158
22.0
7.85
173
9.9
5.95
59
51.1
7.63
390
Freddies 9
3.4
9.56
33
3.0
9.17
28
30.4
6.65
202
36.8
7.12
262
Tshepong
12.9
10.58
136
10.4
10.45
108
11.4
11.96
136
34.6
11.00
380
Unisel
8.0
6.07
49
7.7
5.63
43
12.1
5.50
67
27.8
5.70
158
Total Free State
underground
75.2
9.08
683
81.1
8.78
712
178.1
6.80
1 211
334.3
7.79
2 606
Doornkop
Doornkop Kimberley Reef
4.0
2.29
9
7.5
2.42
18
–
–
–
11.5
2.37
27
Doornkop South Reef
1.4
7.99
11
2.5
7.64
19
19.2
8.35
160
23.1
8.25
191
Total
5.4
3.77
21
10.0
3.73
37
19.2
8.35
160
34.6
6.30
218
Kusasalethu
10.1
10.48
105
23.2
8.96
207
1.5
9.35
14
34.7
9.42
327
Evander
Evander 8
3.0
14.10
42
2.2
15.94
34
10.4
10.01
105
15.6
11.61
181
Evander (below infrastructure)
Evander South
–
–
–
23.9
5.35
128
40.4
3.08
125
64.3
3.92
252
Rolspruit
–
–
–
29.1
11.59
337
4.9
5.69
28
34.0
10.74
365
Poplar
–
–
–
21.4
6.75
145
11.6
5.84
68
33.1
6.43
213
Total below infrastructure
–
–
–
74.4
8.20
610
57.0
3.87
221
131.4
6.32
830
Total Evander
3.0
14.10
42
76.6
8.41
644
67.4
4.82
325
147.0
6.88
1 012
Total SA underground
93.7
9.08
851
190.8
8.39
1 601
266.2
6.42
1 710
550.7
7.56
4 162
SA surface
Kalgold
25.1
0.97
24
58.7
0.94
55
36.3
0.93
34
120.1
0.94
113
Free State surface
Phoenix
110.4
0.28
30
–
–
–
–
–
–
110.4
0.28
30
St Helena
257.6
0.26
66
–
–
–
–
–
–
257.6
0.26
66
Other:
Waste rock
dumps
–
–
–
6.8
0.53
4
31.1
0.45
14
37.9
0.47
18
Slimes dams
–
–
–
622.2
0.22
139
14.9
0.19
3
637.1
0.22
142
Subtotal other
–
–
–
629.0
0.23
143
46.0
0.37
17
675.0
0.24
160
Total Free State surface
368.0
0.26
97
629.0
0.23
143
46.0
0.37
17
1 043.0
0.25
257
Evander surface
Libra Project
–
–
–
202.9
0.29
59
–
–
–
202.9
0.29
59
Total SA surface
393.0
0.31
121
890.6
0.29
257
82.3
0.62
51
1 366.0
0.31
429
Grand total SA
486.7
972
1 081.4
1 858
348.5
1 761
1 916.6
4 591
Papua New Guinea
1
Hidden Valley
4.0
1.74
7
45.1
1.53
69
8.0
1.16
9
57.1
1.50
85
Hamata
0.0
1.37
0
2.9
2.19
6
0.5
2.53
1
3.4
2.24
8
Wafi
–
–
–
31.6
1.98
63
20.0
1.73
35
51.6
1.88
97
Golpu
–
–
–
374.5
0.66
247
59.8
0.89
53
434.3
0.69
300
Nambonga
–
–
–
–
–
–
19.9
0.79
16
19.9
0.79
16
Total Papua New Guinea
4.0
1.74
7
454.1
0.85
385
108.3
1.05
114
566.4
0.89
506
Grand total
490.8
979
1 535.5
2 243
456.8
1 875
2 483.1
5 097
Silver
Tonnes
(Mt)
Grade
(g/t)
Silver
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Silver
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Silver
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Silver
(000kg)
Papua New Guinea
1
Hidden Valley
4.0
28.81
116
45.1
31.24
1 408
8.0
23.84
191
57.1
30.03
1 716
Copper
Tonnes
(Mt)
Grade
(%)
Cu
(Mkg)
Tonnes
(Mt)
Grade
(%)
Cu
(Mkg)
Tonnes
(Mt)
Grade
(%)
Cu
(Mkg)
Tonnes
(Mt)
Grade
(%)
Cu
(Mkg)
Papua New Guinea
1
Golpu
–
–
–
374.5
1.02
3 820
59.8
1.10
658
434.3
1.03
4 478
Nambonga
–
–
–
–
–
–
19.9
0.21
42
19.9
0.21
42
Total
–
–
–
374.5
1.02
3 820
79.7
0.88
700
454.2
1.00
4 520
Molybdenum
Tonnes
(Mt)
Grade
(ppm)
Mo
(Mkg)
Tonnes
(Mt)
Grade
(ppm)
Mo
(Mkg)
Tonnes
(Mt)
Grade
(ppm)
Mo
(Mkg)
Tonnes
(Mt)
Grade
(ppm)
Mo
(Mkg)
Papua New Guinea
1
Golpu
–
–
–
374.5
99.00
37
59.8
76.00
5
434.3
95.83
42
Uranium
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mkg)
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mkg)
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mkg)
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mkg)
SA underground
Free State
Masimong
3.8
0.28
1
8.0
0.26
2
72.9
0.16
12
84.7
0.17
15
Tshepong
5.1
0.20
1
17.2
0.21
4
12.3
0.09
1
34.6
0.17
6
Phakisa
2.2
0.26
1
17.5
0.20
4
27.0
0.19
5
46.7
0.20
9
Total
11.1
0.24
3
42.7
0.21
9
112.2
0.16
18
166.0
0.18
30
Total SA underground
11.1
0.24
3
42.7
0.21
9
112.2
0.16
18
166.0
0.18
30
SA surface
Free State Region
–
–
–
395.6
0.08
30
–
–
–
395.6
0.08
30
Total SA surface
–
–
–
395.6
0.08
30
–
–
–
395.6
0.08
30
Grand total
11.1
0.24
3
438.3
0.09
39
112.2
0.16
18
561.6
0.11
60
1
Represents Harmony’s equity portion of 50%.
NB Rounding of numbers may result in slight computational discrepancies.
Note: 1 tonne = 1 000kg = 2 204lb.
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