| Thu 30 Sep 2010, 11:33 | | HAR - Harmony Gold Mining Company Limited - Press Release |
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HAR
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HAR - Harmony Gold Mining Company Limited - Press Release
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
("Harmony" or "the company")
PRESS RELEASE
Hidden Valley a first for Harmony, says CEO Graham Briggs
Official opening of the Hidden Valley Mine in PNG celebrated by companies and
communities alike
"Hidden Valley is Harmony`s first offshore greenfields project, and represents
an important step in our group`s strategy for geographical and asset
diversification," says Harmony CEO Graham Briggs. Speaking at the official
opening of the Hidden Valley Mine in Papua New Guinea (PNG), Briggs noted that
this was indeed an auspicious event in the year that Harmony turns 60.
Hidden Valley, which is held 50:50 by Harmony and Newcrest as part of the Morobe
Mining Joint Ventures (MMJV), is the first major gold mine to be developed in
PNG in 13 years. Harmony was the initial developer of the project, with Newcrest
acquiring an initial 30% stake in July 2008 and formally reaching a 50% stake in
the joint venture on 30 June 2009.
Of the 2 000 permanent jobs that have been created, around 90% have been filled
by locals, with more than half of those coming from the immediately surrounding
villages. From the outset, a significant emphasis has been placed not only on
the employment and development of local landowners within the company, but also
on the development of economic opportunities for new and local entrepreneurs and
businesses. In addition, a great deal of attention has been paid to the
recruitment, training and development of women.
"While the development of the project has not been without its challenges -
given its remote location and relative lack of infrastructure - the government
and communities of PNG and Morobe Province have provided enormous support to the
project, and have worked closely with the company to ensure that the development
of the Hidden Valley mine has long-term positive and sustainable consequences in
the region.
"Our experience and success in PNG has been noted on the international stage,
and PNG is rapidly being seen as a significant and welcoming gold region. The
experience that we have gained here will stand us in good stead as we continue
to seek growth, both within the MMJV in the Morobe Province and elsewhere in PNG
on Harmony`s 100% owned exploration portfolio."
Building on this success in PNG, Harmony recently announced a significant
increase in the mineral resource at the Wafi-Golpu porphyry copper-gold joint
venture project, again in partnership with Newcrest Mining Limited.
Briggs specifically thanked Hidden Valley employees and contractors, local
landowners, the PNG government, and its partner Newcrest for their contribution
to the success of Hidden Valley.
Note for editors:
Hidden Valley is an open-pit, gold-silver mine and processing plant located in
Morobe Province, PNG. It is approximately 210 kilometres north-northwest of Port
Moresby, the capital of PNG, and 90 kilometres south-southwest of Lae. The
project is held in a 50:50 partnership, the Morobe Mining Joint Ventures,
between Harmony and Newcrest Mining Limited (Newcrest), a major Australian-
listed gold and copper mining company. In terms of the unincorporated joint
venture, each party owns the underlying assets directly and receives product
from the operation, with each party responsible for the marketing of its
product. The joint venture is jointly managed, with the general managers of the
various operations reporting to an operating committee on which both parties are
equally represented. In FY2010, during the year within which Hidden Valley was
commissioned it produced 1 903 kg of gold (61 173 oz) and 6 927 kg of silver
(222 7171 oz), achieving a cash operating profit of R16 million (US$2 million).
The mine is expected to build up to full production during the current financial
year.
30 September 2010
Queries:
Hannes Meyer
tel: +27 11 411 2132
mobile: +27 82 444 7435
Corporate Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 30/09/2010 11:33:00 Produced by the JSE SENS Department.
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