Safety
The concerted effort in recent years to improve safety at Target paid off during the review period when the mine reached one million fatality-free shifts for a fatality-free year (FY10: two). The LTIFR, however, regressed to 7.71 per million hours worked (FY10: 3.73).
 |
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. |
Target employed 3 219 people in FY11, including 408 contractors.
|
Detailed information on Target’s resources and reserves appears in the mineral resources and mineral reserves section of this annual report. |
Operations review
Target 3 has been incorporated with Target 1 into a single operation. As a result, volumes milled rose 4% to 805 000 tonnes. Grade decreased by 3% while gold produced increased by 12% for the year to 127 992oz, of which 17 073oz were capitalised.
Target 1
In FY11, the benefits of improved planning and design in the prior year resulted in greater availability of the massive stopes. In addition, with ventilation and cooling issues resolved, all ten narrow-reef, conventional mining panels were in production during the review period, supported by a clean-mining initiative. Collectively, this has enabled Target to manage its ore reserves better, which is crucial to the mine’s success. Overall grade decreased slightly (1.1%) during the year from 4.40g/t to 4.35g/t.
Target key statistics
| Production |
|
FY11 |
FY10 |
FY09 |
| Volumes milled |
000t (metric) |
805 |
777 |
644 |
| |
000t (imperial) |
888 |
857 |
710 |
| Gold produced†† |
kg |
3 981 |
3 539 |
2 713 |
| |
oz |
127 992 |
113 782 |
87 225 |
| Average grade |
g/t |
4.29 |
4.40 |
4.21 |
| |
oz/t |
0.125 |
0.128 |
0.123 |
| Financial |
|
|
|
|
| Revenue |
R million |
1 080 |
878 |
688 |
| |
US$ million |
154 |
116 |
76 |
| Operating cost* |
R/kg |
227 178 |
190 720 |
186 749 |
| |
US$/oz |
1 011 |
783 |
645 |
| Operating profit |
R million |
265 |
214 |
152 |
| |
US$ million |
37 |
28 |
16 |
| Capital expenditure |
R million |
439 |
382 |
342 |
| |
US$ million |
63 |
51 |
38 |
| People |
|
|
|
|
| Number of employees |
|
|
|
|
| Employees |
|
2 811 |
2 676 |
|
| Contractors |
|
408 |
402 |
|
| Total |
|
3 219 |
3 078 |
|
| HDSAs in management |
% |
35 |
34 |
|
| Women in mining |
% |
10 |
11 |
|
| Training and development expenditure |
R million |
16 |
13 |
|
| Safety |
|
|
|
|
| Fatalities |
|
0 |
2 |
|
| LTIFR |
per million hours worked |
7.71 |
3.73 |
|
| Environment |
|
|
|
|
| Electricity used |
000MWh |
337 |
228 |
|
| Water used for primary activities** |
000m3 |
891 |
2 755 |
|
| GHG emissions |
000t CO2e |
366 |
279 |
|
| Expenditure on local economic development |
R million |
6 |
3 |
|
| Status of mining right |
New-order mining right granted in December 2007 |
|
| * |
Includes royalty payment in FY10 and FY11. |
| ** |
Previous year includes waste rock dust suppression. |
| †† |
FY11: 531kg (17 073oz) and FY10: 117kg (3 762oz) capitalised. |
Unplanned stoppages caused by problems with the decline belt and delayed delivery of the new belt affected production in the third and fourth quarters, which in turn affected tonnages and grade.
Target 3
The focus during the year was on continued shaft build-up and infrastructural improvements. In September 2010 we decided to abandon the shaft below 71 level after the collapse of orepasses, and create a new belt level on 71 level. Commendably, the new belt was designed, manufactured and installed in four weeks. This has greatly assisted in the build-up of the sub-shaft on Basal Reef, which offers better grades.
Several challenges remain in improving sub-shaft conditions. After protracted delays, the fridge plant was commissioned by year end, which will enable access to more panels in the sub-shaft, contributing in turn to higher grades. Good progress has been made in cleaning sub-shaft infrastructure to access the higher-grade Basal Reef mining area. Once all infrastructural improvements have been completed, we expect further improvements in gold production.
Financial review
Higher production and a higher gold price achieved for the year contributed to revenue rising in both rand and dollar terms by 23% and 33% respectively to R1 080 million and US$154 million. Cash operating costs were 19% up in rand terms at R227 178/kg (29% to US$1 011/oz). This was mainly due to the delayed start-up of the sub shaft at Target 3 and labour transfers earlier than planned from other Harmony operations to avoid retrenchments.
Capital expenditure of R439 million (US$63 million) included R199 million (US$29 million) for ongoing development, R35 million (US$5 million) on major equipment maintenance and R205 million (US$29 million) on other shaft capital and major projects. |
