| Tue 18 May 2010, 9:15 | | HAR - Harmony Gold Mining Company - Harmony unions agree ground-breaking |
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HAR
HAPS
HAR - Harmony Gold Mining Company - Harmony, unions agree ground-breaking
profitability plan to save jobs
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
NASDAQ Share code: HMY
ISIN: ZAE000015228
PRESS RELEASE
HARMONY, UNIONS AGREE GROUND-BREAKING PROFITABILITY PLAN TO SAVE JOBS
Johannesburg. Tuesday, 18 May 2010. Harmony Gold Mining Company Limited
(Harmony) today announced a ground-breaking job preservation and profitability
agreement with the National Union of Mineworkers (NUM), UASA and Solidarity in
respect of restructuring at the company`s Virginia operations in the Free
State.
In terms of the agreement, certain sections of the Virginia operations`
Merriespruit 1 shaft will continue to operate, provided:
these sections do not make a loss (on a total cost basis, including any
capital expenditure) for two consecutive months; and
total costs remained under R250 000/kg.
Last month, Harmony announced - after an extensive review - its intention to
close three loss-making shafts at the Virginia operations - Merriespruit 1 and
3, and Harmony 2. The company has since engaged with trade unions under the
auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA),
in a bid to mitigate the effect of the closures on jobs.
Harmony CEO Graham Briggs said: "The innovative agreement announced today
resulted from the process of engagement, and points to the excellent
relationship between management and trade unions in the Free State."
"All parties recognise that, to achieve the desired result - keeping one of
the shafts operational and containing job losses to fewer than 1 000 - the
agreed cost and profitability targets must be achieved through improved
productivity. I believe there is a firm commitment to achieve success by
everyone involved."
For more details contact:
Esha Brijmohan
Investor Relations Officer
On +27 (0)82 759 1775
Or
Marian van der Walt
Executive: Corporate and Investor Relations
On +27 (0)82 888 1242
Or
Graham Briggs
Chief Executive Officer
On +27 (0)83 265 0274
Corporate Office:
Randfontein Office Park
PO Box 2
Randfontein
South Africa 1760
T: +27 (0)11 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 18/05/2010 09:15:01 Produced by the JSE SENS Department.
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