Surface operations

There were no fatal accidents at Kalgold in FY11 while the LTIFR for the year was 5.43 per million hours worked compared to 1.49 in FY10. Commendably, in 2011, Kalgold plant achieved one million fatality-free shifts over a 16-year period.

More detailed information on safety performance and Harmony’s sustainable development concerns in South Africa can be found in the online sustainable development report, with a summary on pages 6 to 15 of this report.

Kalgold employed 545 people, including 316 contractors, in FY11.

Detailed information on Kalgold’s resources and reserves appears in the mineral resources and mineral reserves section of this annual report.

Volumes at Kalgold declined 5% over the year, largely due to several mechanical breakdowns in the mill section of the metallurgical plant. Gold produced declined by 18% to 1 253kg (40 285oz).

The Watertank pit will be mined out within nine months in FY12 and mining in the A zone is planned to start in the latter part of FY12. A project to replace the carbon-in-leach tanks in the plant will start in FY12.

Harmony continued with brownfields exploration in areas surrounding the Kalgold operation.

Despite the lower level of production and cash costs of R254 946/kg (US$1 135/oz), Kalgold reported an operating profit of R81 million (US$12 million). The increase in unit cost largely reflects lower gold production while the tonnage mined remained relatively constant. Capital expenditure for the year was R18 million (US$3 million), mostly on maintaining major equipment.