Safety
Despite achieving 750 000 fatality-free shifts during the year, overall safety performance deteriorated slightly, with the LTIFR at 12.60 (FY10: 12.22). There were regrettably two fatalities during the year (FY10: two).
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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. |
Tshepong employed 5 188 people in FY11, including 206 contractors.
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Detailed information on Tshepong’s resources and reserves appears in the mineral resources and mineral reserves section of this annual report. |
Operations review
Tonnes milled decreased by 12% to 1.34 million in FY11, while grade improved 8% to 4.82g/t. Gold produced dropped to 207 950oz. Tshepong is one of Harmony’s lowest-cost producers, although its grade remains sensitive to stoping width. This is rigorously controlled by the under-cut mining method used at this mine.
Development of sub-71 decline progressed well during the year, despite the area being directly affected by the fire at neighbouring Phakisa in the first quarter. After commissioning the belt and completing the temporary tip on 73 level, the development rate improved for the rest of the period. The sub-71 project, which will connect Tshepong with Phakisa, remains on track for completion in May 2012. This project extends the existing double decline from 71 to 76 level to enable mining on both 73 and 75 levels. The project’s goal is to sink the decline to 76 level by May 2012.
Financial review
Revenue rose by 10% to R2 007 million and by over 19% to US$287 million. Cash operating cost rose by 10% to R182 042/kg and by 20% to US$810/oz with cost pressure coming from increased wages, electricity tariffs and the cost of supplies and equipment.
Capital expenditure was 5% higher at R273 million (US$39 million), primarily for ongoing development, major equipment maintenance and other shaft capital, and the sub-71 decline project. Total expenditure to date on this project is R189 million (US$27 million).
Tshepong key statistics
| Production |
|
FY11 |
FY10 |
FY09 |
| Volumes milled |
000t (metric) |
1 343 |
1 518 |
1 375 |
| |
000t (imperial) |
1 481 |
1 674 |
1 516 |
| Gold produced |
kg |
6 468 |
6 749 |
7 178 |
| |
oz |
207 950 |
216 986 |
230 778 |
| Average grade |
g/t |
4.82 |
4.45 |
5.22 |
| |
oz/t |
0.140 |
0.130 |
0.152 |
| Financial |
|
|
|
|
| Revenue |
R million |
2 007 |
1 823 |
1 780 |
| |
US$ million |
287 |
241 |
198 |
| Operating cost* |
R/kg |
182 042 |
164 938 |
139 901 |
| |
US$/oz |
810 |
677 |
483 |
| Operating profit |
R million |
835 |
676 |
802 |
| |
US$ million |
119 |
90 |
89 |
| Capital expenditure |
R million |
273 |
261 |
249 |
| |
US$ million |
39 |
35 |
28 |
| People |
|
|
|
|
| Number of employees |
|
|
|
|
| Employees |
|
4 982 |
4 901 |
|
| Contractors |
|
206 |
163 |
|
| Total |
|
5 188 |
5 064 |
|
| HDSAs in management |
% |
31 |
30 |
|
| Women in mining |
% |
9 |
11 |
|
| Training and development expenditure |
R million |
22 |
23 |
|
| Safety |
|
|
|
|
| Fatalities |
|
2 |
2 |
|
| LTIFR |
per million hours worked |
12.60 |
12.22 |
|
| Environment |
|
|
|
|
| Electricity used |
000MWh |
314 |
288 |
|
| Water used for primary activities** |
000m3 |
9 351 |
1 144 |
|
| GHG emissions |
000t CO2e |
348 |
347 |
|
| Expenditure on local economic development |
R million |
10 |
6 |
|
| Status of mining right |
New-order mining right granted in December 2007 |
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* Includes royalty payment in FY10 and FY11.
** New definitions used in FY11 have resulted in a revised calculation methodology. |
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