HARMONY AND NUM AGREE ON CONOPS AT RANDFONTEIN
Harmony Gold Mining Company Limited
JSE: HAR
NYSE: HMY
ISIN NO.: ZAE000015228
Johannesburg, Friday, 10 September 2004 - Harmony Gold Mining Co Ltd
(JSE : HAR NYSE : HMY) today announced that it had reached an agreement
with the National Union of Mineworkers (NUM) on the implementation of
CONOPS at its Randfontein operations in Gauteng.
Following an agreement reached with NUM on 16 July 2004, at which the
concept and implementation of CONOPS was agreed to on a national level,
discussions continued on a regional level.
With the conclusion of this agreement, the company is phasing in the
implementation of CONOPS at its Free Gold, Evander, Target, ARMgold,
Elandsrand and Randfontein operations, representing approximately 80% of
its South African production.
`The current Randfontein operations are mature in nature and will in the
short-term benefit from the introduction of CONOPS. Benefits will
however be more evident as its Doornkop South Reef growth project comes
into production. Negotiations for the implementation of CONOPS at our
original Harmony operations continue.` commented Bernard Swanepoel,
chief executive.
The Doornkop South Reef growth project is expected to produce
approximately 3.75 million ounces of gold at a rate of 330 000 ounces
per annum over a project life of some 18 years. Cash costs will be
significantly lower at US$270/ounce.
CONOPS (continuous operations) refers to the practice where a mine
operates on all the days of the year, including Sundays. Workers
operate on a roster or shift arrangement which sees them work the same
amount of hours per week and therefore the company needs to employ more
people in order to facilitate working the additional days.
Currently most gold mines in South Africa operate for approximately 273
days per year. The successful introduction of CONOPS can increase this
number to 353 days per year (excluding the 12 public holidays). This
will result in a 25% increase in labour per stope on the shafts as well
as a 5% to 8% reduction in unit cost/tonne.
ENDS
Issued by Harmony Gold Mining Company Limited
Issued by Harmony Gold Mining Company Limited
10 September 2004
For more details contact:
Bernard Swanepoel
on +27(0)83 303 9922
or
Ferdi Dippenaar
on +27(0)82 807 3684
Investor Relations Officer
Corne Bobbert
Tel +27 11 684 0146
Mobile +27(0)83 380 6614
cbobbert@harmony.co.za
www.harmony.co.za
Date: 10/09/2004 04:52:02 PM Produced by the JSE SENS Department
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