Harmony Gold Mining Company Limited - Continues It
Harmony Gold Mining Company Limited - Continues Its Cost Reduction Drive
HARMONY GOLD MINING COMPANY LIMITED
JSE: HAR
NYSE: HMY
ISIN No.: ZAE000015228
HARMONY CONTINUES ITS COST REDUCTION DRIVE
Johannesburg, Friday 8 October 2004 - Harmony Gold Mining Company Limited
(NYSE: HMY JSE: HAR) today announced that it had signed an agreement with
Sandvic Mining and Construction (SMC) on the maintenance of the company`s
trackless fleet at its Target Mine.
Sandvic Mining and Construction, the company responsible for maintaining the
trackless fleet at Target, has entered into a new agreement with Harmony which
will be based on a unit cost payment basis. The new contract has an immediate
mining cost reduction of R20/tonne and is structured such that any further
savings will be shared between Harmony and SMC. SMC stated that they are
demonstrating their commitment to the reduction of mining costs through the
introduction of mechanised mining by entering into this agreement. The contract
therefore creates a common focus between the parties.
This deal confirms that the company is continuously focussed on finding cost
saving opportunities in all aspects of its operations, even through partnerships
as the deal with SMC demonstrates. `The reduction of R20/tonne will lower our
cut-offs, increase the payable reserve and mining flexibility and therefore
extend the life of the mine,` said Philip Kotze, Mine Manager, Target Mine.
`This agreement demonstrates that our contractors have accepted that they will
now be measured on the same parameters as that of the company, in Rand per tonne
terms, where we have the same goal and focus,` commented Bernard Swanepoel,
Chief Executive. `We feel confident that the two parties have set the stage for
future agreements with other suppliers of this mutually rewarding nature,` he
concluded.
ENDS
Issued by Harmony Gold Mining Company Limited
8 October 2004
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