Profile: Harmony Gold Mining Company Ltd (HMY.N)
26 Dec 2014
Harmony Gold Mining Company Limited, incorporated on August 25, 1950, is a gold-mining and exploration company. The Company has operations in South Africa and Papua New Guinea (PNG). The Company has 11 underground mines, one open-pit mine and several surface operations, mostly in South Africa’s Witwatersrand Basin, as well as in the Kraaipan Greenstone Belt. In PNG, the Company has a 50% joint venture with Newcrest Mining Limited in the Hidden Valley open-pit gold and silver mine, the Wafi-Golpu project, and extensive exploration tenements. Its own (100%-owned) exploration portfolio focuses principally on highly-prospective areas in PNG. As of June 30, 2013, the Company’s mining operations reported total proved and probable reserves of 51.5 million ounces (including gold equivalent ounces), primarily from South African sources. During the fiscal year ended June 30, 2013 (fiscal 2013), the Company processed 20.7 million tons of ore.
South African Operations
The Company operates a total of 11 underground operations, several surface operations including an opencast mine, and eight processing plants, which are all located in the known goldfields in the Witwatersrand basin of South Africa, as well as the Kraaipan Greenstone Belt. These operations produced approximately 1.052 million ounces in fiscal 2013, and South Africa represented approximately 58% (or 29.8 million ounces) of its total proved and probable reserves. The deep level gold mines are located in three provinces in this basin, being the Free State Province, the North-West Province and the West Rand Goldfields in Gauteng Province. Surface operations are located in all these provinces. Bambanani (includes Steyn 2 shaft), Doornkop, Joel, Kusasalethu, Masimong, Phakisa, Target 1, Target 3, Tshepong and the Unisel operations. Doornkop is located in the Gauteng Province of South Africa, approximately thirty kilometers west of Johannesburg. The operation is owned by Randfontein Estates Limited (REL). Doornkop operates under its own mining authorization of 2,941 hectares. Joel is located in the Free State Province, on the south-western edge of the Witwatersrand basin. The mine consist of of two shafts, North and South shafts.
The Company’s Kusasalethu is located near Carletonville on the Gauteng/North West border in South Africa. Masimong is located in the Free State Province, near Riebeeckstad. The Masimong complex consists of an operating shaft, 5 Shaft, and a second shaft, 4 Shaft, which, although closed, is used for ventilation, pumping and as a second outlet. Target 1 is situated in the town of Allanridge in the Free State Province, some 270 kilometers southwest of Johannesburg. Located on the northern limit of the Welkom Goldfields, the site is accessed through the R30 motorway situated between the towns of Bothaville and Welkom. Target 3 is situated near the town of Allanridge in the Free State Province, some 270 kilometers southwest of Johannesburg. Unisel is located in the Free State Province, near Virginia.
The Company, through its wholly owned PNG-based subsidiaries owns various development and exploration prospects, and one operating mine. This includes a 50% interest in what is collectively known as the Morobe Mining Joint Venture (MMJV), held through Morobe Consolidated Goldfields Limited (Morobe Consolidated Goldfields), Wafi Mining Limited (Wafi) and Morobe Exploration Limited (MEL). It also has exploration projects that are wholly owned, held through Harmony Gold (PNG) Exploration Limited (HGEL). The Company is continuing with exploration at three key project sites, being Mount Hagen, Amanab and Tari. The Hidden Valley Mine is an open pit gold-silver mine and processing plant, managed by the Hidden Valley Joint Venture. The mine consists of a mining lease and access easement in the Wau District of Morobe Province, PNG and is located 210 kilometers north-northwest of Port Moresby and 90 kilometers south-southwest of Lae, the two largest cities in PNG.
The Morobe JV land holding consists of some 4,173 km2 of tenure. The tenement package encompasses the Wafi-Golpu and Hidden Valley projects. The Wafi-Golpu JV prospect is a 50:50 joint venture with Newcrest of Australia. The Company’s ownership is through its wholly owned subsidiary, Wafi Mining Limited. The Kesiago prospect lies approximately five kilometers south-west of Wafi-Golpu on the Wafi transfer structure. The Mt Tonn prospect lies approximately 7.5 kilometers along strike to the southeast of Wafi-Golpu on the Wafi transfer structure. HGEL holds interest in over 3,693 square kilometers (912,560 acres) of exploration tenure in PNG. The Amanab Project covers 464 square kilometers (114,656 acres) in the West Sepik Province and encompasses the Amanab alluvial goldfield, which is one of 17 recognized alluvial goldfields on the PNG mainland. The Tari Project consists of two granted exploration licenses encompassing some 2,568 square kilometers (634,566 acres) of tenure in the Southern Highlands.
Harmony Gold Mining Company Ltd
Randfontein Office park
Corner of Main Reef Road and War