EX-99 98 ex15_1.htm Page 1
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As filed with the Securities and Exchange Commission on October 23, 2015
(Mark One)
For the fiscal year ended June 30, 2015
Date of event requiring this shell company report
For the transition period from
Commission file number: 001 — 31545
(Exact name of registrant as specified in its charter)
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
Riana Bisschoff, Group Company Secretary
Tel: +27 11 411 6020, riana.bisschoff@harmony.co.za, fax: +27 (0) 11 696 9734,
Randfontein Office Park, CNR Ward Avenue and Main Reef Road, Randfontein, South Africa, 1759
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Ordinary shares, with nominal value Rand 50 cents per share*
(Title of Class)
American Depositary Shares (as evidenced by American Depositary Receipts),
each representing one ordinary share
(Title of Class)
* Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.
Securities registered or to be registered pursuant to Section 12(g) of the Act:
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
The number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the last full fiscal year covered by
this Annual Report was 436,187,133 ordinary shares, with nominal value of Rand 50 cents per share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES        NO
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934. YES
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. YES
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files)**. ; YES
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated
filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer  
      Accelerated filer         Non-accelerated filer         Small reporting company  
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
International Financial Reporting Standards as issued
by the International Accounting Standards Board 
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to
Item 17 
Item 18 
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court**.
**Not applicable to the registrant
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In this report we have included references to additional
information on certain sections, either in the report
itself or online.
Go to www.harmony.co.za and click on the investor
tab where you will find a more detailed account of the
environmental, socio-economic and governance aspects
of Harmony’s business for FY15.
The QR code link will take you to information
suitable to view on your mobile device.
Download an application for your phone,
take a picture of the code and the relevant
page will open in your browser window.
No matter the circumstances, safety is our
main priority
We are all accountable for delivering on
our commitments
Achievement is core to our success
We are all connected as one team
We uphold honesty in all our
business dealings and communicate
openly with stakeholders
Our values are at the core of all we do – they underpin all
our actions and are built into the design of our business.
Harmony, a gold mining and exploration
company with more than six decades
of experience, has operations in South
Africa –one of the world’s best known
gold mining regions – and in Papua New
Guinea – one of the world’s premier new
gold regions. In FY15, Harmony was the
third largest gold producer in South Africa
and the twelfth largest in the world. At
Harmony, we understand the impact that
our company has on the lives of the people
we employ, the communities that surround
our mines and the environment, as well as
the economic contribution that we make
to the countries in which we operate.
A full glossary of terms is available on page 222.
Throughout this report, “$” or “dollar” refers to US dollar,
unless otherwise stated.
“K” refers to kina, the currency of Papua New Guinea.
“Moz” refers to million ounces.
All production volumes are in metric tonnes (t) unless
specifically stated as imperial tons.
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About this report
Who Harmony is
How we performed
Chairman’s letter
Chief executive officer’s review
Financial director’s review
Social and ethics committee chairman’s report
Our strategy and investment case
How we create value
Board and management
Our business context
Managing our risks and opportunities
Material issues
Stakeholder engagement
Safety and health
Employees and communities
Environmental performance
Operational performance
Projects and exploration
Resources and reserves
Mining Charter compliance
Corporate governance
King III compliance scorecard
Remuneration report
Audit and risk committee chairman’s report
Assurance report
Directors’ report
Company secretary’s certificate
Global Reporting Initiative index
Shareholder information
Glossary of terms
Forward-looking statements
Directorate and administration
Inside back cover
Harmony Gold Mining Company Limited Integrated Annual Report 2015 1
(FY14: R15.7bn)
FIFR: 0.11
(FY14: 0.26 per million hours worked)
Our annual financial statements are presented in full
in the Financial Report 2015 which is available at
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2  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our Integrated Annual Report 2015 tells the story of Harmony Gold Mining Company Limited (Harmony) for our 2015 financial year (FY15),
from 1 July 2014 to 30 June 2015. This report is not limited to this time period and also addresses certain comparative historical information
where this is relevant and provides some insight into how we envisage our future.
In this report we aim to show readers what Harmony has done and achieved, what we plan to do and achieve in the future and how we
intend to get there. The report reflects on our journey in FY15 – we explain our external and internal environments, our strategy and business
model, together with our objectives and how we performed against these. For the purpose of integrated reporting, we have defined our
readers as the primary providers of financial capital – that is shareholders. But, we understand that other stakeholders have a deep and vested
interest in our company, and we have tried to address their interests and concerns where it has been possible and appropriate to do so.
Our company is built on the strength of our actions. This report examines the way in which we acted on our strategy in the past year, and the
effects this has had on our business, our relationships and our prospects. This report has been compiled through conversations with a number
of stakeholders so that it addresses and captures our full story. We have included extensive feedback from stakeholders and have highlighted
key actions by Harmony during the year that showcase our commitment to our values and strategy, our integrated thinking and how we are
mitigating key risks. The highlighting of noteworthy actions allows us to bring our reporting alive and provides insight into the Harmony story.
A consistent thread throughout this report is the way in which we address our most material risks and issues.
This report covers all of Harmony’s wholly-owned operations in South Africa as well as its joint venture and own exploration activities in
Papua New Guinea. Discontinued operations have been excluded unless otherwise stated. In addition, this report details the environmental,
socio-economic and governance aspects of these operations, and Harmony as a whole. A separate notice of annual general meeting with
summarised financial statements is posted to shareholders and is available on our website.
For the purposes of this report we define the short, medium and long term as follows:
Short term
– six months to a year
Medium term
– one year to three years
Long term
– longer than three years
In addition to this report, Harmony produces an annual report prepared on a Form 20-F, filed with the United States Securities and Exchange
Commission, in compliance with the listing requirements of the New York Stock Exchange. Copies of this will be available from 23 October
2015, free of charge on the Electronic Data Gathering, Analysis and Retrieval system at
www.sec.gov and on our website. In an effort to
align the Form 20-F with the Integrated Report, we have included relevant information from the Form 20-F in this report. Any additional
information can be found on our website at
www.harmony.co.za/investors . This integrated report has been developed in line with the
International Integrated Reporting Council Framework, the Global Reporting Initiative G4 guidelines and the King III Report on Governance
for South Africa. The full Global Reporting Initiative index is available on pages 210 to 218.
In addition, our annual financial statements, including the summarised consolidated statements, have been prepared in accordance with
the International Financial Reporting Standards as issued by the International Accounting Standards Board, the SAICA Financial Reporting
Guideline as issued by the Accounting Practice Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council,
the South African Companies Act 71 of 2008, as amended (Companies Act) and the JSE Listings Requirements. For ease of reference,
Harmony’s audited annual financial statements are available in a separate report, the Financial Report 2015, which is also available online at

Everything we do, from risk assessment and decision making to reporting, is informed by our understanding of how various elements of
the business fit together. We have applied this approach to this report as well – it is a fully integrated document that gives insight into both
our financial and non-financial performance. Summarised information on mineral resources and reserves appears on pages 159 to 167,
with comprehensive information available in the report entitled Mineral Resources and Mineral Reserves 2015, which is available online at
www.harmony.co.za/investors/reporting/annual-reports. The resource and reserve statements have been compiled in accordance with the
South African Code for Reporting of Exploration Results, Mineral Reserves and Mineral Resources, the Australian Code for Reporting of
Mineral Resources and Mineral Reserves, Industry Guide 7 of the United States’ Securities and Exchange Commission and the JSE Listings
Requirements. This information was gathered, reviewed and confirmed by the relevant competent persons. No restatements were made in
the 2015 financial year.
At Harmony we acknowledge that this report is made meaningful by ensuring that the information contained in it is accurate and appropriate.
As in previous years, this report has had its most material key performance indicators assured by PricewaterhouseCoopers Inc. A copy of their
assurance report is available on page 204 of this report.
Our reporting, and the activities that it discusses, can be improved through feedback. As a result, if you have any comments or suggestions
on this report, send them to our investor relations team:
Our board of directors has read and considered this annual report, and signed it off on 23 October 2015.
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Who Harmony is
How we performed
Chairman’s letter
Chief executive officer’s review
Financial director’s review
Social and ethics committee
chairman’s report
Our strategy and investment case
How we create value
Board and management
Harmony Gold Mining Company Limited Integrated Annual Report 2015  3
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4  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Harmony, a gold-mining and exploration company, has operations in South
Africa and Papua New Guinea, one of the world’s best-known gold mining
regions and one of the world’s premier new gold regions respectively. Harmony,
which has more than six decades of experience, was South Africa’s third largest
gold producer and the twelfth largest in the world in FY15.
At Harmony, we understand the significant impact our company has on the lives
of people, on the communities that surround our mines, on the environment,
and on the economic well-being of the countries in which we operate.
We measure, we measure up and we deliver.
In South Africa, our operations are focused on the world-renowned Witwatersrand Basin, as well as the Kraaipan Greenstone Belt.
We operate nine underground mines, one open-pit mine and several surface operations.
Our operations in Papua New Guinea form part of a 50:50 joint venture with Newcrest Mining Limited. These operations include
the Hidden Valley open-pit gold and silver mine, the Golpu project in Morobe Province and significant exploration tenements. In
addition to its joint ventures, Harmony also has a wholly-owned exploration portfolio that focuses on highly prospective areas in
Papua New Guinea.
In FY15, our South African operations accounted for 91% of our total production of 1.08Moz, with the remaining 9% coming from
Papua New Guinea. At the same time, our South African holdings represented 64% of our mineral resource base, while those in
Papua New Guinea represented 36%.
Looking ahead, the Golpu project is expected to be a game-changer for Harmony. This project is among the best gold-copper
porphyries in south-east Asia. On 15 December 2014, Harmony’s board approved the updated prefeasibility study for this project
and agreed to progress it to feasibility study stage. The updated prefeasibility study entails low development capital cost, targets high
grades to maximise free cash flow generation and demonstrates the potential of this world-class ore body.
The updated prefeasibility study supports our view that Golpu is a spectacular ore body with a large copper component and that it
is affordable and mineable. Key objectives of the study – to reduce the capital cost of the project and lower operating costs so as to
improve returns on capital – have been achieved. For more information refer to page 156 in this report.
Phakisa mine
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Target 1
Hidden Valley*
Golpu project*
Morobe Mining Joint Ventures
with Newcrest
** Harmony 100% and within
the joint venture
31 114
R15.4 billion
Harmony Gold Mining Company Limited Integrated Annual Report 2015  5
Northern Cape
Western Cape
Eastern Cape
Free State
North West
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6  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our company delivers long-term benefits to a broad range of stakeholders. We rely on experienced, skilled teams who live our values
and play their role in maintaining stakeholder relationships, growing profits and maintaining a sustainable company.
At the end of FY15, Harmony employed 31 114 people in total – 26 000 employees and 5 012 contractors in South Africa and
75 employees and 27 contractors in Papua New Guinea (excluding employees of the Morobe Mining Joint Ventures). Our employees
are drawn from communities around our operations, and from other provinces in South Africa and other southern African countries.
Our corporate offices are located in Randfontein, South Africa, close to some of our South African operations, while our south-east
Asia office is located in Brisbane, Queensland, Australia.
The company is governed by a board of directors which brings together a range of skills and experience and whose members are
committed to maintaining the highest levels of corporate governance. In turn, the directors entrust the management of Harmony
to skilled management teams which work towards ensuring that the company remains sustainable, towards improving margins and
towards increasing the value of our assets in Papua New Guinea. For more on our board and management see page 28.
Harmony lives its values – safety, being accountable, achievement and being connected and honest. These are the compass points
for our actions, ensuring that, in addition to achieving our strategic goals, we seek to make the right decisions and support the
members of our teams in doing so. These values are ingrained in our training initiatives and decision-making processes, ensuring that
they are at the front of employees’ minds and actions. Our values extend beyond our operations’ gates. They guide our interactions
with external stakeholders, from shareholders and the media to local communities and those from which our employees are drawn.
Our hope is that through a commitment to these values, we can build a company with which people want to be associated and
which will generate shared value into the future.
As a company, Harmony understands that long-term value is about more than the gold we produce and the profits we make. These
are fundamental to our ability to create value in the broadest sense, but our worth is better reflected in the impact we have on the
lives of people, now and in the future.
Masimong underground
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  7
Harmony is listed on the Johannesburg Stock Exchange and on the New York Stock Exchange. The company’s shares are quoted
in the form of American Depositary Receipts on the New York Stock Exchange and as International Depositary Receipts on the
Berlin exchange.
In FY15, Harmony was once again admitted to the Johannesburg Stock Exchange’s Socially Responsible Investment Index, as we have
been since inception of that index. Our Integrated Annual Report FY14 received an African Gold Quill Award from the International
Association of Business Communicators for excellence in the communication skills category. The award acknowledged our move
away from printed to web-based reporting, an initiative aimed at making our reports more easily accessible to all stakeholders,
decreasing our corporate costs and reducing the amount of paper consumed in the printing process.
At the 2015 MINESAFE awards, Harmony’s operations won five safety awards in the gold sector category:
  Bambanani mine – first place for best year on year improvement for the total injury frequency rate
  Target 1 mine – first place for ‘best in class’ for the total injury frequency rate
  Tshepong mine – third place for year on year improvement for the total injury frequency rate
  Joel mine – third place for ‘best in class’ for the total injury frequency rate
  Tshepong mine – fourth place for ‘best in class’ for the total injury frequency rate
The Kusasalethu proto captains received the MINESAFE proto award for rescuing 442 people from underground in the aftermath
of the fire at the mine in February 2015.
Our Merriespruit 3 housing project was first runner up for the Govan Mbeki award in 2015. Our Masimong housing development
was declared the winner both in the Govan Mbeki National Award for best housing development project in 2013 and in the Govan
Mbeki National Award for the best community residential units project in 2014.
These awards all speak to our on-going commitment to building a sustainable business and we are proud to have been recognised.
Phakisa shaft
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8  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Relevant Global Reporting Initiative indicators: G4-EC1
Operating performance
Ore milled
18 063
18 784
18 373
18 154
Gold produced 1
33 513
36 453
35 374
36 273
1 077
1 172
1 137
1 166
Operating costs
369 203
328 931
324 979
275 058
1 003
1 146
1 101
All-in sustaining costs
458 626
413 433
431 745
357 390
1 246
1 242
1 522
1 431
Underground grade
Financial performance
R million
15 435
15 682
15 902
15 169
Production costs
R million
12 632
11 888
11 321
9 873
Production profit
R million
2 803
3 794
4 581
5 296
Operating margin
Net profit/(loss) for the year
R million
(4 536)
(1 270)
(2 349)
2 599
Total headline earnings/(loss) per share
SA cents
Capital expenditure
R million
2 593
2 528
3 649
3 049
Exploration spend 13, 14
R million
Dividend spend
R million
Net debt
R million
(2 332)
(1 031)
Market performance
Average gold price received 1
449 570
432 165
454 725
419 668
1 222
1 299
1 603
1 681
Total market capitalisation
R billion
US$ billion
Exchange rate
Gold and gold equivalents
Geographical distribution of gold reserves
– South Africa
– Papua New Guinea
FIFR – fatal injury frequency rate
per million
hours worked
LTIFR – lost-time injury frequency rate
per million
hours worked
9.24 8
7.54 7
5.46 7
6.86 7
TIA – total injury and accidents
number of
1 210 8
1 167
Health (South Africa)
– Shifts lost due to occupational illness
and injury
24 514
25 338
20 236
23 497
– Noise-induced hearing loss (NIHL) compensated
– Silicosis cases certified 4
197 8
175 7
185 7
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  9
Total number of employees and contractors2
31 114
34 746
36 579
36 915
South Africa: employees
26 000
28 991
30 867
31 566
South Africa: contractors
5 012
5 695
5 557
5 349
Papua New Guinea: employees 2
Papua New Guinea: contractors 2
Morobe Mining Joint Venture employees (100%)
1 390
1 534
1 628
1 798
Morobe Mining Joint Venture contractors (100%)
2 977
2 499
Employment equity
(historically disadvantaged South Africans in management) 6
Number of people in single rooms 5
7 4368
1 6787
1 1027
Number of people sharing
6 8417
8 6297
10 2377
Number of people in critical-skill positions trained 12
Community – group local economic development 11
R million
Meaningful economic participation 9
Total discretionary spend
R million
5 565
5 595
5 956
5 329
Preferential procurement (BEE) spend
R million
3 8498
3 4427
2 4597
2 1387
Preferential procurement spend %
Mineral waste (volume disposed)
24 6598
33 4987
32 8077
20 2527
Total electricity use
2 6578
2 7987
2 7047
3 0587
– Scope 1
000t CO2e
– Scope 2
000t CO2e
2 6868
2 7457
2 648
3 047
– Scope 3
000t CO2e
Water used for primary activities 3
14 6148
16 4957
18 5567
32 9797
Funding/guarantees for rehabilitation
and closure
R million
2 444
2 200
2 330
2 386
Zero gold production capitalised in FY15, FY14 and FY13 (FY12: 36kg/1 157oz)
Excluding employees from the Morobe Mining Joint Ventures
Definition changed for FY13 to exclude fissure water from the reported figure
The number of cases of pure silicosis confirmed by the South Africa’s Medical Bureau of Occupational Diseases in FY13, FY14 and FY15. Previously we
assured silicosis cases submitted to the Medical Bureau of Occupational Diseases
The number of single rooms only represent hostels which are 100% converted. At the end of FY15, all employees living in hostels were living in single
rooms. In FY14, the total number of single rooms (including single rooms in incomplete hostels) was 5 027 (FY13: 3 214) (FY12: 1 757)
The increase in compliance indicators is due to alignment of Harmony’s reporting with the Department of Labour’s classification guidelines – (EEA9). For
previous years, indicators were based on Patterson grade D-F only whereas C band employees are now classified as Junior Management and have been
included in the 2015 employment equity percentage
Assured by independent auditors in prior years – refer to www.harmony.co.za/investors/reporting/annual-reports
Assured by independent auditors in the current year. Please refer to the Assurance Report on page 204 and Glossary of Terms for definitions applied on
page 222
Percentage of production attributed to interests held by historically disadvantaged South Africans
Not previously reported
In addition, capital of R89 million was spent in FY15 on the upgrading of hostel accommodation at various operations (FY14: R106 million)
We invested R1 million in FY15 (FY14: R1.2million) to train people in critical-skill positions
As per income statement
Total exploration spend including capitalised amounts are R385 million (FY15), R470 million (FY14), R1.2 billion (FY13) and R811 million (FY12)
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10  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Dear Shareholder
During the past financial year the gold mining industry in South Africa and globally
experienced a progressively weakening gold price and rising operating costs. Harmony
responded to the lower gold price and higher costs, by restructuring and rationalising
its asset portfolio, cutting costs, improving labour productivity, increasing the overall
mining grade and focusing on mining only safe and profitable ounces.
Our company is well-positioned to benefit from higher gold prices and increased gold
production. The gold mining industry, globally, responded to lower dollar gold prices
in much the same way as it did in the preceding year. Shafts have been closed, capital
spending has been deferred and management overhead costs have been reduced.
While gold’s average dollar price dropped by 6% to $1 222/oz from the previous year’s
$1 299/oz, the weakness of the rand against the dollar meant that in South African
currency terms the average gold price received increased by 4% to R449 570/kg.
The safety and health of everyone in Harmony is our primary concern. Our efforts
to address and consistently improve our safety standards are on-going. The
preparedness and quality of our safety measures was shown on 22 February 2015
when an underground fire broke out at Kusasalethu mine and all employees working
underground at the time were brought to surface safely, with no-one suffering harm
or injuries. The Minister of Mineral Resources at the time, Ngoako Ramatlhodi, and
the Chamber of Mines both commended the rescue teams. Some of the rescuers who
assisted us came from across the industry, displaying the spirit of comradeship that
characterises the South African mining industry.
One of the most positive developments is that there were no fatalities at our South
African operations during the second quarter. Our safety record for the year as a whole
in terms of fatalities was the best that the South African operations have recorded in
more than a decade. Regrettably nine of our colleagues lost their lives in accidents
during the year. We remain committed to zero fatalities at all our operations. I send
my personal condolences and those of the entire Harmony to the families, friends and
work colleagues of the nine who so tragically lost their lives at our operations.
Our aim is to eliminate all work-related injuries and illnesses. All our operations are
guided by our occupational health and safety policy, which is based on leading safety
practices. This policy was formulated with the cooperation and active participation of
management, unions and the Government.
In our drive to continually improve our safety performance, each operation is monitored
monthly through a formal review system. Safety is a key performance indicator and a
key component of performance reward for the vast majority of our people.
Harmony’s strategy of developing and operating higher grade, profitable mines resulted
in the average underground recovery grades increasing in the past couple of years and
remaining steady in FY15. Planned recovered grade for FY16 is 5g/t – see the graph
on page 11.

Patrice Motsepe
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  11
Tightening margins, due to weak gold prices and rising costs have led to adjustments at our operations. To protect Harmony from
the sliding gold price, we restructured some of our mines, right-sized employee numbers and mined only safe and profitable high-
grade ounces. Target 3 was closed and Kusasalethu, Masimong, Doornkop and Hidden Valley were restructured. Our large capital
investment in Kusasalethu has positioned us to mine the higher grade ore body and increase profitability.
The strategies and interventions by management to restructure and optimise our operations will position Harmony for a more
profitable future. The benefits of this restructuring and optimisation will improve productivity, margins and profitability, even in
these challenging times. In addition, cost management and cash generation will continue to be our primary focus in the year ahead.
Further details on the company’s financial performance are provided in the Financial Director’s Review on page 18 and on its
operational performance in the section entitled Operational Performance on page 120.
We continue to gain invaluable knowledge of Papua New Guinea’s people, business, social structure and its exciting and valuable
geology. Currently, Harmony’s principal objective is to develop the Golpu copper-gold deposit into a producing mine. The results
of the updated prefeasibility support our view that this deposit will create significant value for our shareholders and benefit all
Given the subdued market, the updated prefeasibility was based on a reduced capital requirement and lower operating costs. This
resulted in an improved rate of return. The updated prefeasibility study covers the first stage (stage 1) of Golpu’s development. Stage
1 of the Golpu development, targets the upper higher value portion of the ore body. Work will continue on optimising a second
stage mine development (stage 2), which will encompass the rest of the ore reserves. The early stages of the Golpu project will
be funded internally. Initial indications are that first production would be in 2020 with full production of 500 000 equivalent gold
ounces expected from 2024 to 2029.
The two proposed block caves in stage 1 are designed to access approximately 30% of the tonnes which contain approximately 40%
of the metal (gold and copper) of the Golpu reserve. The mining and processing infrastructure would then be utilised to exploit the
remaining 70% of the tonnes which contain about 60% of the contained metal (gold and copper) of the Golpu reserve.
Harmony will fund the first three years from operating cash flows and from FY18 onwards, debt financing will also be considered.
From FY21 stage 1 will be cash flow positive after capital expenditure. At financial year-end, the Golpu team was in the process of
negotiating a pre-mine development agreement – a precursor to commencing with advanced exploration and feasibility support
activities – with the Papua New Guinean government. Discussions post year-end have progressed well with a final draft of the
proposed agreement circulated to the cabinet of Papua New Guinea for consideration.
Underground recovered grade (g/t)
FY16 (forecast)
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12  Harmony Gold Mining Company Limited Integrated Annual Report 2015
During March 2015, we intersected a highly significant zone of copper-gold mineralisation at the Kili Teke exploration prospect which
is located west of Golpu, in the Hela Province of the Papua New Guinean Highlands on one of our exclusively owned exploration
licence areas. The Kili Teke exploration prospect has the potential to develop into a major copper-gold deposit similar to Golpu.
Since June 2015, Harmony and other major South African gold companies have been engaged in wage negotiations with the
different worker representative organisations. During October 2015, Harmony concluded a three-year wage agreement with the
National Union of Mineworkers, Solidarity and United Association of South Africa, which was extended to the entire workforce in
the bargaining unit, as these unions represent the majority of our workforce.
The Tlhakanelo Employee Share Ownership Plan gives all the non-managerial employees of Harmony an opportunity to benefit as
shareholders in Harmony’s gains. The Tlhakanelo Share Ownership Plan has realised R44 million for the Harmony employees in the
financial year under review.
At year-end, Harmony and its industry counterparts were awaiting confirmation from the Department of Mineral Resources that
both it and they had achieved the end-2014 empowerment targets set by the Mining Charter.
The differences in interpretation relating to the “once empowered, always empowered” principle should be resolved in a manner
that will ensure the long term global competitiveness and attractiveness of the South African mining industry.
Harmony continues to be committed to running its mines and operations for the benefit of its shareholders, workers, communities
neighbouring its operations and all other stakeholders.
At Harmony we realise that, along with others in the mining sector, we can make a lasting contribution to the economic and social
development of all stakeholders in the countries where we operate.
Our capacity to benefit all stakeholders is dependent and influenced by our long-term sustainability and profitability.
Our ability to develop and benefit all our stakeholders is influenced by and requires the cooperation and partnership of our employees,
neighbouring communities and local and national Government.
One of our important objectives is to help our employees to acquire affordable housing in places where our people wish to live and
where social and infrastructural facilities are readily available. Our programme of converting the former multi-occupancy hostels to
provide private, married or single accommodation is largely complete and offers accommodation to those employees who choose to
reside on mine properties. The workers who prefer to live elsewhere are paid a monthly living-out allowance that stood at R2 000
at the financial year-end.
Doornkop plant
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  13
We continue to work in partnership with the Department of Human Settlements to convert old hostels to family units. The Masimong
3 housing project has been completed while the conversion at Merriespruit is in progress. Additional housing and accommodation
conversions are being investigated. Also noteworthy is that by December 2014, we had met our target in the hostels of one person
per room.
Our approach to interacting with employees and Harmony’s communities is based on direct, open and clear communication from
which we can learn and understand their aspirations and needs. The full details are described elsewhere in this report, and we
combine direct communication with indirect interaction through our employees’ representative unions. This is particularly so on a
day-to-day basis between mine managers and shaft stewards on issues that are specific to each mine.
The protection and conservation of the environment is an integral part of Harmony’s culture and way of doing business. We comply
in all respects with our obligations to protect and rehabilitate our mining footprints both during and after the end of mining.
South Africa’s National Development Plan supports the development of environmentally sustainable renewable energy initiatives that
contribute to the creation of jobs. To this end, in FY14, Harmony commissioned its bio-energy project which is designed to reduce
our carbon footprint, rehabilitate our land and create approximately 200 jobs for women and youth from our host communities at
full production. Bio-fuel energy will be produced in the form of natural gas from bio-mass grown on our mine properties in the Free
State. First gas from this project is scheduled to be produced in April 2016.
We at Harmony remain confident in gold’s longer-term prospects. At the financial year-end, spot gold was trading in London at
$1 173/oz, almost 12% down on the $1 327/oz at which it opened the year. It is more prudent to adopt a conservative approach
and to expect a weaker gold price over the short to medium term period. While demand in the traditional market of India and China
remains strong, speculative demand by investors in the mature Western economies remains vulnerable to when the United States
Federal Reserve will raise interest rates.
In anticipation of higher interest rates in the United States, investors have been liquidating their positions in the gold exchange
traded funds. Investment sentiment is also coloured by the fact that low inflation rates appear to be here to stay, at least for several
years. This may tarnish gold’s attraction as a safe-haven hedge.
In contrast, demand for gold to be held as a reserve by central banks has not waned. The central banks of China, Russia and others
have been adding to their gold holdings for various reasons that often have more to do with domestic than with global economic
issues. At the same time, official holdings by the world’s mature economies have stopped declining.
As the dollar has strengthened against other currencies, helped in part by the prospect of higher interest rates in the United States,
the metal’s price in other currencies has actually increased. This is particularly so in South Africa where most of our operating costs
are incurred in the local currency. This affords Harmony considerable flexibility in its operational planning and adds to our confidence
in the metal which underpins our business.
It gives me great pleasure to acknowledge and to express my gratitude to the directors of Harmony, our management team,
employees and all our other stakeholders who contribute to making Harmony the fine company that it is.
I would also like to express my personal gratitude to Graham Briggs who will be retiring as our CEO when a suitable successor is
appointed. Graham did a good job as our CEO and will assist with the exciting work in Papua New Guinea.
Harmony is currently facing and dealing with several challenges but I remain confident about its profitability and competitiveness.
Patrice Motsepe
23 October 2015
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14  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our strategy remains unchanged: a company that creates value by increasing its margins
and generating the cash necessary to develop Golpu in Papua New Guinea – ensuring
positive shareholder return in the long term. We have restructured underperforming
operations, cut corporate costs, curtailed capital expenditure and reduced our employee
numbers. We are now well-positioned to continue to produce safe, profitable ounces.
I am pleased to report a significant improvement in our safety performance with
Harmony recording its first ever fatality-free quarter for the South African operations in
the second quarter of FY15. Harmony’s safety performance in terms of all parameters
measured improved over the year. However, we are not content with our performance,
as nine lives were tragically lost at our mines during the year under review.
The colleagues we mourn are Mhanjelwa Cebani, a rockdrill operator at Doornkop,
Mosoeu Ntsutheleng, a team leader at Kusasalethu, and Mariselunes Thibello, a rock
drill operator at Bambanani, who were involved in fatal falls of ground: Mmaneo Florisa
Muso from Tshepong, Michael Chobeng from Masimong and Maxwell Wari from
Hidden Valley who were involved in transport accidents; Bernardo Ernesto Cuambe, an
engineering assistant at Unisel, who was involved in a headgear accident; and security
officers, Sello Jacob Bobejaan and Thapelo Andries Mofokeng who succumbed to gas
and smoke inhalation from a self-made heating device inside their security cubicle at
the Brand 1 ventilation shaft. To their families, their friends and their colleagues, I send
our most sincere condolences.
We continue to strengthen our resolve to make our mines accident free. Following
each incident in which an injury – whether fatal or not – occurs, an incident report
detailing “lessons learnt” is circulated to all operations to enable them to scrutinise
their own systems and procedures. This enables them to pro-actively identify potential
shortcomings and to take remedial action where necessary to prevent a recurrence of
any such incident.
To achieve zero harm, visible felt leadership is enforced at all levels. This is based on
our commitment to safety as a priority that is embedded in our organisational culture.
Initiatives implemented at the operations encourage safer behaviour throughout
the company. Emphasis on health and safety campaigns has been reinforced, via
communication initiatives and regular visits underground by senior management. The
focus of these visits was training and coaching.
In terms of the delivery of health services, Harmony has moved away from the historic
mine-hospital approach that was curative in nature to one that is more pro-active
and focused on prevention. This approach entails providing decentralised primary
healthcare-based services, called health hubs, as close as possible to where people
are – that is at the operations. This health hub concept has been rolled out to the
entire group and has delivered significant benefits, including decreased absenteeism,
hospitalisation and medical mortality.
At an industry level in South Africa, we participate in an industry working group
to address issues relating to compensation and medical care for occupational lung
disease. The gold mining companies involved in the working group have engaged with
all stakeholders to co-operate in the design and implementation of a comprehensive
Graham Briggs
Chief executive officer
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  15
solution that is fair to past, present and future employees, and one that is also sustainable for the sector. Harmony has been working
for many years to eliminate the incidence of occupational lung disease. Various measures have been implemented to improve the
management of dust underground – and these efforts continue.
Among the challenges with which Harmony has had to contend has been that of sustaining operations – particularly those of mines
that have fallen into losses, squeezed between accelerating costs and falling gold prices. Losses at two of our mines – Kusasalethu
and Doornkop – have combined to pull Harmony’s overall performance down.
Restructuring at Kusasalethu will contribute to restoring the mine’s profits. We have closed the older, lower grade mine and are
now mining in the higher grade, new areas. Doornkop, which operated at a loss in each of the past year’s four quarters, presented
and continues to present a significant challenge. Following several meetings with organised labour, Harmony and the unions have
agreed to a new, revised operational plan for Doornkop that will return the mine to profitability, thus saving a significant number of
jobs. The outcome of the Doornkop discussions is testimony to what can be achieved when all parties engage with the same aim in
mind – to find a sustainable solution to ensure the mine’s viability and at the same time securing the majority of jobs.
At Masimong, with its marginal grades, the mine has been restructured for profitability by reducing development rates and
concentrating on higher-grade areas. This strategy will reduce the mine’s remaining operational life expectancy to about two years
and, while this is short, they are expected to be two profitable years.
At the Hidden Valley mine we have reduced the waste stripping to increase our profitability. Due to the lower metal prices we revised
Hidden Valley’s life of mine plan and focused on further cost savings. Post year-end, on 18 July 2015, a road accident occurred at
Hidden Valley, fatally injuring one employee. The mine was closed for several weeks while intensive safety audits were conducted.
This is likely to impact the production of the first quarter of FY16.
Stakeholder engagement is vital – in both South Africa and Papua New Guinea. In South Africa, several meetings were held
during the year with various government officials to address issues of mutual interest, to influence legislation and to guide policy
development. This included on-going meetings with the former Minister of Mineral Resources, Advocate Ngoako Ramatlhodi, to
discuss gold industry and company issues.
We continue to participate in stakeholder and community forums that seek to address the challenges that the gold industry faces –
whether with community members, our own employees, government or the Chamber of Mines.
In Papua New Guinea, our teams continue to engage with landowners in a constructive and professional manner. Government
acknowledges the significant contribution from mining companies in the country and I find it encouraging that they are always
willing to meet with management.
The South African gold sector – although viewed by critics as having reached a mature stage – continues to deliver a large fraction
of the country’s export earnings and employment opportunities.
Harmony brings a number of skills to the mining of narrow, deep-level and low-grade reefs, which will serve the industry well for
some decades to come. That being said, the industry’s future success and sustainability will depend on a great degree of cooperation
and dedication across each mine as well as on government creating an economic environment that is conducive to profitable mining.
The electricity grid in South Africa has been under pressure since November 2014 and the national power supplier, Eskom, has
announced that load shedding will continue in the medium term. Our primary concern is that load shedding can impact production
and the safety of workers underground during a power outage. Various initiatives have been implemented to ensure that our
employees remain safe, that production continues and that energy is managed efficiently. These initiatives range from optimising
and managing our electricity consumption, especially during peak times, the installation of modern efficient equipment, the
potential inclusion of renewable energy as a power source and co-generation as well as own generation. For more on this, see the
Environmental Performance section on page 100.
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16  Harmony Gold Mining Company Limited Integrated Annual Report 2015
At Harmony, we live our five values – safety, accountability, achievement, being connected and honesty. Our pro-active communication
campaign focuses on keeping our employees informed about the state of the mine they work at as well as about the health of
Harmony. We engage with all unions – whether formally recognised or not – and considerable emphasis has been given to direct
engagement with employees and unions over the past two years. A particular emphasis during the year was on fostering an
understanding of the economic circumstances of the sector as a whole and of Harmony’s mines specifically.
During FY15, operational restructuring involving a reduction in employee numbers was undertaken at Masimong, Doornkop and
Kusasalethu in South Africa. The Ernest Oppenheimer hospital and Target 3 mine in the Free State were closed. Mitigating alternatives
to retrenchment were implemented, including transfers to other operations, voluntary separation, early retirement and re-skilling.
Year-on-year, the total number of employees (including contractors) in South African fell by 11% to 31 012 in FY15.
South Africa’s gold mining sector entered into biennial wage talks in June 2015. The manner in which negotiations had previously
been managed was something of the past, as mining companies sought to move away from the previous positional approach to
negotiations – with both sides setting out initial demands and offers and then moving towards a happy medium. Harmony and the
other participating gold-mining companies sought rather to explain the industry’s current difficulties and challenges so that talks
could start with both sides knowing each other’s position.
High wage increases and industrial action will result in the downscaling of operations and the closure of vulnerable mines. Job losses
would be inevitable. As much as we at Harmony wish to sustain employee numbers, it is simply not possible if the very sustainability
of our company is to be undermined. Mines and shafts will close as their resources are exhausted or become unviable, and that will
mean fewer job opportunities. This is a situation that is faced not only by Harmony, but by the rest of South Africa’s gold mining
sector. Slowing, halting or lessening the process of job losses can only be achieved through honest co-operation between employers
and employees.
We have reached a three-year wage agreement with the National Union of Mineworkers, United Association of South Africa and
Solidarity, effective from 1 July 2015. Increases range from 6% for miners, artisans and officials to 10.4% for category 4 employees.
Although it has been a protracted negotiation process, I believe that we have achieved what we set out to do – reaching an
agreement which ensures that we remain sustainable as a company and as an industry, and at the same time limiting job losses.
As calendar year 2014 came to an end, we were confident that we had achieved all of the empowerment targets. We believe that
our performance in terms of each of the nine pillars of the Mining Charter illustrates that we have done more than just comply.
The former Minister of Mineral Resources, Advocate Ngoako Ramatlhodi, announced the department’s assessment of the mining
industry’s compliance with the Mining Charter during May 2015. Harmony acknowledges the Department of Mineral Resources’
account of the mining industry’s successes in achieving these targets and that it recognised the role of the mining industry as a driver
of growth and development in South Africa.
The Department of Mineral Resources disagreed with the mining industry’s overall claims of compliance, particularly that of “once
empowered, always empowered”. It was then agreed that the mining companies and the department should together approach
the court for clarification. The Chamber of Mines – on behalf of the mining industry – filed its application with the High Court
on 4 June 2015.
Harmony will continue its journey to bolster its future in South Africa by proactively participating in transforming the South
African mining industry. We are committed to identifying opportunities to facilitate ownership by historically disadvantaged
South Africans, to transforming our workforce, to investing in developing South Africans and to creating opportunities for small
business entrepreneurs. Our achievements in respect of the Mining Charter are reported more fully elsewhere in this Integrated
Annual Report 2015.
Turning the Golpu deposit in Papua New Guinea into a producing mine with our joint venture partner is Harmony’s principal growth
project. Completion of the updated prefeasibility study in December 2014 was a major project milestone. The study was based on
a vertically dipping ore body containing a resource of 20.2Moz of gold and 9.4Mt of copper. While a feasibility study has still to be
completed, indications are that this world-class deposit could be worked from two block caves with first production in 2020 and
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  17
full production of 6Mt attained in 2024. Attributable annual production for Harmony will be significant and is estimated to average
500 000 gold equivalent ounces annually from 2024 to 2029. On this basis, the mine would have an initial estimated life of some
27 years, though the deposit remains open ended and may offer further scope for development.
Results of the updated prefeasibility study support our view that Golpu is a spectacular ore body with a large copper component.
It is affordable and mineable. Key objectives of the study were to reduce the capital required for the project, lower operating costs
and improve the rate of return.
The initial stages of the project will be funded from internal cash flows. Other funding options will be considered for later stages of
the project. Given the current volatility in the gold price, we are focused – more than ever – on cost control and cash generation at
existing operations to fund Golpu.
Elsewhere in Papua New Guinea, Harmony’s exploration targets are centred on highly prospective areas where field work and surface
sampling have delivered sound indications of copper and gold.
As our current resources are finite, it is vital to have a project pipeline to replace reserves mined. During March 2015, a highly
significant zone of copper-gold mineralisation was intersected at the Kili Teke exploration prospect, on one of our exclusively owned
exploration licence areas in Papua New Guinea.
Initial diamond drill testing of the Kili Teke prospect is currently underway. Assays received from the first four holes have all returned
broad porphyry-style copper-gold intercepts with mineralisation extending to surface. The mineralisation contains higher grade
intervals of copper-gold mineralisation up to 202m @ 0.74% copper and 0.57g/t gold. At this stage, the mineralisation remains open
through the drill pattern over 500m, and at depth.
In an environment where very little is being spent on exploration and with the paucity of new major copper and gold discoveries, the
results from this grassroots prospect are very encouraging. As the extent of the surface copper-gold geochemical footprint is yet to
be tested, there is potential to develop this find into a major copper-gold deposit similar to Golpu, Ok Tedi or Frieda River which have
resource cut-off grades of around 0.2% copper. New discoveries are one of the best avenues to create shareholder value.
Our operational aims in FY16 will be to contain costs and remain South Africa’s lowest-cost producer when measured in rands per
tonne mined and ensure that every operation is profitable.
In contrast to South Africa where our mines are all mature operations, we are in the process of developing a greenfields project in
Papua New Guinea. The feasibility study on stage 1 and the prefeasibility on stage 2 are due to be completed in December 2015.
This, together with the completion of a pre-development agreement with the Papua New Guinean government, will add more
certainty to the development of a mine at Golpu. Our exploration programme has enjoyed, and continues to enjoy, considerable
success in locating copper-gold mineralisation and we shall continue this activity methodically.
I continue to believe in the future of Harmony. Each operation has been positioned to be profitable. Our plans are realistic and can
be achieved.
During July 2015, I indicated to the board that I wish to retire from my role as chief executive officer and director of the board. Thank
you to everyone who has contributed to making Harmony what it is. I am grateful for the support and guidance of our chairman,
Patrice Motsepe, of my board colleagues and management team, and of the many people who work on our mines and in our
exploration teams.
Graham Briggs
Chief Executive Officer
23 October 2015
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18  Harmony Gold Mining Company Limited Integrated Annual Report 2015
During the financial year under review, Harmony restructured its high-cost operations
to optimise profitability. In particular:
Target 3 was placed on care and maintenance at the end of the first quarter of FY15
We embarked on a life-of-mine optimisation process at the South African operations
to ensure a greater focus on profitability and the mining of higher grade areas. This
process resulted in the restructuring of Kusasalethu, where the old mine levels were
closed and a Section 189A process was completed in the third quarter of FY15
Doornkop’s life-of-mine plan was shortened and focused on higher grade areas
Restructuring at Hidden Valley resulted in a revised mine plan to reduce costs that
placed greater emphasis on operational improvements
Masimong restructuring involved reducing development rates and a greater focus on
mining higher-grade areas
The 8% decrease in production recorded for the year was mainly due to stoppages
at Kusasalethu, the suspension of mining at Target 3 when it was placed on care and
maintenance at the end of September 2014, and a decrease in production at Hidden Valley.
The average underground grade remained stable in FY15. The Harmony group’s revised
business plans for FY16 resulted in an impairment of R2.1 billion (US$174 million) for the
Hidden Valley operation following the reduction in the life of mine. Other impairments
include R1.0 billion (US$85 million) following the restructuring and downsizing at Doornkop
that was aimed at establishing a smaller but more profitable mine.
Harmony maintained a solid balance sheet. The strong cash flows generated from
operations enabled Harmony to fund the majority of its own capital expenditure
despite operational and market challenges experienced during the year.
Change %
Gold produced (kg)
33 513
36 453
Gold produced (oz)
1 077 466
1 171 987
Underground recovered grade
Gold sold (kg)
34 332
36 288
Gold sold (oz)
1 103 793
1 166 682
Gold price received (R/kg)
449 570
432 165
Gold price received ($/oz)
1 222
1 299
Exchange rate (R/US$)
Cash operating costs and capital (R/kg)
442 895
397 964
Cash operating costs and capital (US$/oz)
1 203
1 196
All-in sustaining costs (R/kg)
458 626
413 433
All-in sustaining costs (US$/oz)
1 246
1 242
average gold price received in rand terms increased by 4% as the weakening of the rand against the US$ offset the continued
decrease in the US$ gold price.
All-in sustaining costs (R/kg) increased by 11% to R458 626/kg (0% to US$1 246/oz). The increase is mainly attributable to the
decrease in gold sales and the increase in production costs.
Frank Abbott Financial director
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  19
Change %
15 435
15 682
Production costs
12 632
11 888
Impairment of assets
3 471
1 439
Employment termination and restructuring costs
Gross loss
3 618
Exploration expenditure
Loss on scrapping of property, plant and equipment
Other expenses (net)
Taxation credit
Net loss for the year
4 536
1 270
Revenue for FY15 of R15 435 million is 2% lower (or US$1 348 million, 11% lower) than FY14 mainly as a result of the 5% decrease
in the volume of gold sold, which was offset partially by a 4% increase in the average rand gold price received.
Production costs were well controlled and only increased by 6% to R12 632 million (reduced by 4% to US$1 103 million), despite
higher-than-inflation price increases in electricity, labour costs and the cost of consumables.
A total impairment of R3.5 billion (US$285 million) was recognised, which consisted of R2.1 billion (US$174 million) for Hidden
Valley, R1.0 billion (US$85 million) for Doornkop, R278 million (US$23 million) for Phakisa and R43 million (US$3million) for Freddies
9. The impairment of Hidden Valley was recorded following the reduction in its life of mine as the lower gold price and increasing
costs continue to adversely impact its profitability.
Employment termination and restructuring costs of R251 million (US$22 million) in FY15 are a result of the restructuring of under-
performing operations.
Exploration expenditure of R263 million (US$23 million) for FY15 relates mainly to the various projects in Papua New Guinea, of
which most was spent on Golpu. The amount of spend reflected in the income statement decreased from the prior year as the Golpu
project’s stage 1 exploration expenditure was capitalised following the approval of the project’s updated prefeasibility study by the
Harmony and Newcrest boards in December 2014.
Loss on scrapping of property, plant and equipment of R491 million (US$42 million), recorded mainly for Kusasalethu and
Masimong, relates to the abandonment of unprofitable mining areas arising from the life-of-mine optimisation process, which
placed greater emphasis on mining of profitable and higher grade areas.
Other expenses includes R382 million (US$33 million) (2014: R155 million (US$15 million)) for the foreign exchange translation loss
on the US$-denominated loan facilities.
The taxation credit in FY15 resulted from the reduction in the average deferred tax rates at the South African operations following
completion of the annual life-of-mine plans.
The net loss for the year was mainly due to the impairments of Hidden Valley and Doornkop, the loss on the scrapping of property,
plant and equipment following the life-of-mine optimisation process and reduced production.
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20  Harmony Gold Mining Company Limited Integrated Annual Report 2015
(3 399)
(2 860)
Total borrowings
(3 399)
(2 860)
Cash and cash equivalents
1 067
1 829
Net debt
(2 332)
(1 031)
In FY15, the syndicated US$300 million loan facility was settled and Harmony entered into a new US$250 million revolving credit
facility. Translation losses of R382 million (US$33 million) were recorded on the loans owing to the weakening of the rand against
the dollar. The facility matures in February 2018.
A total of R400 million (US$35 million) was drawn down on the R1.3 billion Nedbank revolving credit facility during the year. The
facility matures in December 2016.
Cash and cash equivalents declined to R1 067 million (US$88 million) from R1 829 million (US$172 million).
Cash generated by operating activities
2 006
2 268
Cash utilised by investing activities
(2 908)
(2 640)
Cash generated by financing activities
Net decrease in cash and cash equivalents
ash generated by operating activities decreased by 12% to R2 billion (or 20% to US$176 million) mainly due to the decrease
in revenue and increased production costs (as noted).
Cash utilised by investing activities: Capital expenditure increased by 7% to R2 822 million (or 4% to US$246 million) in
FY15 from R2 648 million (US$256 million) in FY14. Harmony’s focus is on capital expenditure that supports safe production and
a sustainable future.
Cash generated by financing activities: During the year, there was a net cash outflow of US$20 million (R204 million) on the
US$ loan facilities and we raised borrowings of R400 million (US$35 million) on the Nedbank ZAR facility.
For more on this, refer to the consolidated financial statements in the Financial report 2015. Which is available at www.har.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  21
Cash generated by
operating activities
Cash utilised by
investing activities
Cash generated by
financing activities
Change in cash FY15 (Rm)
June 2015
June 2014
1 000
1 500
2 000
2 500
3 000
3 500
4 000
1 067
1 829
2 908
2 006
We believe that in restructuring and optimising our operations to focus on the mining of higher grade ore to grow gold production,
we will increase margins and generate free cash flow.
Bambanani underground
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22  Harmony Gold Mining Company Limited Integrated Annual Report 2015
As the chairman of the social and ethics committee, I am again honoured to report
on the matters within this committee’s mandate for the year ended 30 June 2015, in
accordance with the Companies Act 71 of 2008 (the Act). This committee is established
in terms of section 72 and regulation 43 of the Act and complies with its requirements
and those regulations pertaining to the composition and functions of a social and ethics
committee. As a statutory requirement, our social and ethics committee is established
by the board and fulfils its functions on behalf of Harmony and its subsidiary companies.
For more information on the composition of this committee, refer to the Corporate
Governance section on page 172.
The committee is cognisant of its duties and is committed to aligning Harmony with
the socio-economic transformational agendas of our host countries. We aim to leave
lasting legacies for our employees, for our operations’ host communities and for the
countries in which we operate.
As a committee, we assist the board in ensuring that Harmony remains a committed and
responsible corporate citizen. This is done by overseeing and monitoring the company’s
policies and activities on public safety, health, social investment, economic investment,
labour relations, ethics, government relations and environmental management. The
terms of reference of this committee are available at www.harmony.co.za/sustainability/
The social and ethics committee is confident that during the past financial year it complied
with the legal, regulatory and other responsibilities assigned to it by the board.
Sustainable development is woven into the way we do business. It is at the core of
Harmony’s strategy and value proposition.
At Harmony, we work to ensure that we leave lasting legacies, tangible impacts
that extend beyond the lives of our mines and that they are aligned with the
legitimate expectations of our stakeholders. We continue to interact with our various
stakeholders and aim to satisfy their needs to the best of our ability. The process of
communicating and engaging with our stakeholders helps to develop and sustain
mutually beneficial relationships.
In terms of our stakeholder engagement policy, the subject of our engagement is
determined by those matters that are of material significance to our stakeholders, and is
based on a thorough understanding of their views, needs, perceptions and expectations.
Our five core values underpin all stakeholder engagement. The social and ethics
committee has reviewed the stakeholder engagement policy to ensure that it remains up
to date and relevant in the current climate in which our company is operating.
We appreciate that our business is long-term and that our presence within, and
our commitment to, our host communities will span the next few decades. We also
recognise, that social, economic, political and environmental risks are becoming
increasingly challenging and significant, and that Harmony must succeed in creating
value for all its stakeholders.
Modise Motloba
Independent non-executive
deputy chairman
Chairman, social and ethics committee
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  23
The committee, which undertakes its duties with accountability both to the board and to the company’s stakeholders, met five
times during the past financial year and attended one site visit during the year. The committee’s key activities are summarised in the
corporate governance report on page 172.
The board reviewed the committee’s responsibility in terms of the Act with regard to the monitoring of public safety and in future,
the committee will receive and review quarterly reports on public safety from management. The committee is, however, satisfied
that during FY15, the technical committee (as duly mandated by the board), sufficiently monitored and interrogated the company’s
continued efforts to improve employee safety – Harmony’s top priority. The technical committee ensured we were fully informed
regarding policy interventions underpinning our safety strategy and we are comfortable that this robust strategy will continue to
deliver the expected improvements in safety across the group. For a detailed discussion on safety, please refer to pages 58 to 64 of
this report.
The Mining Charter was developed to assist in transforming the South African mining industry with 2014 set as the deadline for
final compliance.
Harmony submitted reports per mining licence to the Department of Mineral Resources on its progress made in achieving targets
specified by the Mining Charter. The reports focused on eight pillars, namely reporting, ownership, housing and living conditions,
procurement and enterprise development, employment equity, human resources development, mine community development,
sustainable development and growth.
Harmony’s reports to the Department of Mineral Resources underscored our commitment to transformation and demonstrated good
performance against all of the key parameters measured. Our key challenges in FY15 were that we were unable to comply fully with
the targets for housing and living conditions and for procurement spend on services for the Doornkop mining licence. For more
information refer to page 98 of this report.
When it comes to transforming our workforce, we have met all the group-wide targets, with the appropriate number of historically
disadvantaged South Africans employed at all levels of management as well as of women in mining. We are currently undertaking
additional work to ensure that we are fully transformed at an operational level too. For more on this see page 85.
To formalise our commitment to the Mining Charter, we have produced and adhered to social and labour plans for each of our
operations. In the financial year under review, we continued to deliver projects in line with both our commitments and with the
expectations of the regulators and our host communities. For more on our social and labour plan projects see page 87.
Although amendments to the Mineral and Petroleum Resources Development Act had been approved by parliament, the proposed
bill was returned to the National Assembly for further review by the President in February this year, on the advice of the then Minister
of Mineral Reserves. The outcome of the related review of the Mining Charter has also been postponed. While we await further
announcements. Harmony continues to negotiate with government through the Chamber of Mines, which is representing the gold
mining sector.
We endeavour to have sound, lasting relationships with our employees, who make up the Harmony family. The safety and well-being
of our employees remains paramount with safety interventions and proactive healthcare being our main focus. Harmony finds that
engaged employees who share a common vision for the company and for the country are more successful in delivering the objectives
of the company. Therefore communications at all tiers in the organisation were enhanced to sustain dialogue within the company
to ensure that our operations were peaceful during the past year. We recognise that employee engagement is a material issue and
remain vigilant and proactive in this regard. For more on our employee relations see page 79.
On 2 October 2015, Harmony signed a three-year wage agreement with all unions except with the Association of Mineworkers and
Construction Union. As the agreement was reached with unions representing the majority of employees at Harmony, the agreement
was extended to all employees.
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24  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our commitment to engage honestly and appropriately extends to all relevant stakeholders. For more on our stakeholder engagement
see page 52.
Environmental management, particularly relating to our rehabilitation plans, remains central to sustainability. Our resources, much
like the lifespan of our business, are not infinite.
This year saw the continuation of the rehabilitation programme which further reduces our total mining footprint, progression of the
bio-energy project, development of solar parks and the establishment of a partnership for agriculture in respect of food security.
All these projects are designed to deliver ecological benefits while supporting the socio-economic imperatives of job creation and
entrepreneurial development.
Each year we review issues across the group to establish how relevant they are to the reporting period. This assists in identifying our
material issues and our sustainability-related key performance indicators which, in turn, affect our level of assurance. The current
review again indicated that our assurance levels are more than adequate but, in an effort to improve them steadily, we have decided
to move local economic development and employment equity from a limited level of assurance to a reasonable level of assurance.
In addition, the total number of incidents and accidents was added to the list of key performance indicators to be assured on a
limited basis.
Papua New Guinea is included in the annual sustainability assurance scope, except where it is explicitly excluded. For FY15, Papua
New Guinea was excluded for assurance of the housing and living conditions, procurement spend, number of certified silicosis cases,
number of people trained for critical positions and employment equity key performance indicators.
This year we continued with the voluntary disclosure guidelines of the Global Reporting Initiative as we believe, particularly in areas
relating to sustainability, this continues to add value to our reporting. Consequently, our online integrated report is produced in line
with G4 recommendations.
I confirm that Harmony did not incur any material fines, convictions or penalties in any of the areas that fall within the mandate of
the committee. There was also no material non-compliance with any legislation, regulations or codes within these areas during FY15.
We believe ethical conduct is a prerequisite for doing business. There is a direct correlation between sustainable business success and
consistent ethical behaviour. The continued success of our company depends on the highest levels of integrity across all aspects of
our business. We want all our stakeholders to view Harmony as a company they can trust – therefore we are unequivocal about our
values and the way in which these values find expression in our daily behaviour. Following the latest financial year-end, our code of
ethics and code of conduct were developed further and updated during August 2015 to renew our commitment and responses to
the challenge of unethical conduct in business. For more on these codes refer to page 180 of this report.
We continue to make considerable progress on our journey toward sustainable development with tangible benefits for all
stakeholders. The commitment of our people to safety, health, governance and environmental issues is commendable and for that
I thank you. My sincere appreciation goes to members of the social and ethics committee and the board for their continued and
invaluable guidance, support and input.
Modise Motloba
Chairman: social and ethics committee
23 October 2015
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  25
Our strategy remains unchanged: to create value by increasing margins and generating the cash necessary to develop Golpu in
Papua New Guinea. We revisit our strategy throughout the year to ensure that it remains relevant and appropriate, while being
responsive and adaptive to both internal and external changes. We responded to changes in our economic environment and as a
result restructured under-performing operations, cut corporate costs and curtailed our capital expenditure. These actions position
our operations well to produce safe, profitable ounces in future.
To ensure that the value of all our assets are accounted for in our share price and to create a viable investment case, we are assessing
ways of funding Golpu and unlocking the true value of each of our assets. This will ensure positive shareholder returns in the long term.
Our strategy underpins our actions, allowing everyday decisions to move the company towards our goals. One of the ways in which
we achieve our strategy is through having the right people in the right jobs, who understand our objectives and strive to achieve our
strategy. We do this by highlighting our strategy in all training and communication between management and employees (refer to
the section on Employees and Communities on page 78 for information on our employees).
Although we are not highly geared, we aspire to be debt free in the future. We have provided realistic operational guidance for FY16
(refer page 123 of the Operational Performance section) which forms the basis of what we set out to achieve in the year to come.
Harmony’s investors have exposure to South Africa, Papua New Guinea, gold and copper. We released the updated prefeasibility study
of our copper-gold project, the high grade Golpu deposit, in December 2014 (refer
golpu-updated-prefeasibility-results or to page 154 of the Projects and Exploration section of this report). The feasibility study of the
Golpu project has commenced and will be completed by the end of calendar year 2015, while the information is scheduled to be
released to the market early in 2016.
During FY15, our greenfield exploration also yielded encouraging results from the Kili Teke prospect in Papua New Guinea which we
will continue to pursue in FY16. For the latest exploration results, please refer to
company-announcements-2/announcements-2015/866-superb-exploration-results-from-harmony-s-kili-teke-prospect or refer to
page 153 of the Projects and Exploration section of this report. We believe that the company has been positioned to benefit from
higher gold prices. Unlocking the value in each of our assets – which is key to our strategy – involves positioning each operation to
be profitable by driving production and limiting costs so as to create free cash flow. Our plans are realistic and achievable. We are
one of the few companies that continues to spend on exploration and to find excellent deposits. Our company has an exciting future
and is worth investing in.
Our strategy
creating value,
Our operations
positioned for
Financial results
cash is king
(no compromises)
FY16 guidance
realistic and safe
Golpu and Kili Teke
potential game
a company worth
investing in
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for the financial year ended 30 June 2015

Obtain geological information

Obtain financing and create
infrastructure to access mineral resources
Feasibility studies to determine
economic viability of ore bodies
2 657GWh
Everything we do at Harmony is underpinned by our values:
R2 963m
31 114
R12 632m
R2 803m
R15 435m
909 596oz
Harmony creates value through more channels than just
monetary spend. We continue to help improve education,
build infrastructure, provide healthcare, stimulate local
economies and rehabilitate the environment. Examples of
this work can be found throughout this report.
26  Harmony Gold Mining Company Limited Integrated Annual Report 2015
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Extraction of mineral reserves
Extracting the gold from
the ore and refining
Mine closure and land rehabilitation
R7 025m South Africa
R493m Papua New Guinea
R109m South Africa
R28m Papua New Guinea
R2 270m South Africa 1
R693m Papua New Guinea
R1 829m South Africa
R84m Papua New Guinea
R159m South Africa 1
R1m Papua New Guinea
R2 592m South Africa
R707m Papua New Guinea
R66m South Africa
R0m Papua New Guinea
WAGES AND SALARIES PAID (incl. contractors)
Harmony Gold Mining Company Limited Integrated Annual Report 2015  27
Capital of R89 million was spent on upgrading hostel accommodation in South Africa. This amount was included in our
communities and local economic development spend and excluded from capital expenditure.
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28  Harmony Gold Mining Company Limited Integrated Annual Report 2015
BA (Legal), LLB
Appointed to the board on 23 September 2003, Patrice became non-executive chairman
during 2004. He was a partner at one of the largest law firms in South Africa, Bowman
Gilfillan Inc. He was a visiting attorney in the United States with the law firm, McGuire
Woods Battle and Boothe. In 1994 he founded Future Mining, which grew rapidly to
become a successful contract mining company. He then formed ARMgold in 1997,
which listed on the Johannesburg Stock Exchange in 2002. ARMgold merged with
Harmony in 2003 and this ultimately led to the takeover of Anglovaal Mining Limited.
In 2002 he was voted South Africa’s Business Leader of the Year by the chief executive
officers of the top 100 companies in South Africa. In the same year, he was the winner
of the Ernst & Young Best Entrepreneur of the Year award. Patrice is a recipient of
numerous other business and leadership awards, including:
World Economic Forum Global Leader of Tomorrow, 1999
Afrikaanse Handelsinstituut, MS Louw Award for Exceptional Business Achievement, 2003
Jewish Achievers Awards, Chivas Humanitarian Award, 2013
BRICS (Brazil, Russia, India, China, South Africa) Business Council, Outstanding
Leadership Award, 2014
He is the executive chairman of African Rainbow Minerals Limited and the deputy
chairman of Sanlam Life Insurance Limited. He is also a member of the International
Business Council of the World Economic Forum, which is made up of 100 of the most
highly respected and influential chief executives from all industries. He is a member of
the JP Morgan International Council.
His past business responsibilities include being the chairman of the BRICS Business
Council for 2013 and president of Business Unity South Africa, the representative voice
of organised business in South Africa, from January 2004 to May 2008. He is also
president of Mamelodi Sundowns Football Club.
Apart from being a non-independent non-executive chairman, he is also a member of
the nomination committee.
Independent non-executive deputy chairman
BSc, Diploma in Strategic Management
Modise was appointed to the board on 30 July 2004. He is the founder and chief
executive officer of Quartile Capital Proprietary Limited, a black-owned, managed and
controlled niche financial services and investment group with expertise in corporate
finance, consulting, treasury services, investments and wealth.
Modise has more than 22 years’ working experience in the financial sector both in
South Africa and the United States and has operational expertise in treasury services,
corporate finance, fund management and wealth management.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  29
He has worked for local and global firms such as Rand Merchant Bank, Goldman
Sachs, African Merchant Bank, African Harvest Fund Managers and PwC. In addition
to Harmony, he has served on the boards of Deutsche Bank Securities, Landbank,
Landbank Insurance and Rand Merchant Bank Structured Insurance. Modise has
played organisational leadership roles for the South African Reserve Bank, the Financial
Services Board, the Association of Black Securities and Investment Professionals, Nafcoc-
Johannesburg Chamber of Commerce and Industries and the Black Business Council.
Chairman of the social and ethics committee and a member of the nomination
committee and the audit and risk committee.
Lead independent non-executive director
BA (Economics), FCCA
Fikile was appointed to the board on 30 March 2006. A chartered certified accountant,
she was only the second person to obtain this qualification in Botswana. She was awarded
the Stuart Crystal Prize for Best Accounting Student at Birmingham Polytechnic (UK), now
Birmingham University, being the first black overseas student to be awarded this prize.
Fikile is a fellow of the Association of Chartered Certified Accountants United Kingdom.
From 2000 to 2008, she worked in various capacities at the Council for Medical Schemes
in South Africa, including as chief financial officer and chief operations officer. Prior to
that she worked in various capacities at the Botswana Development Corporation and
was its first treasurer. She also served on various boards representing the corporation’s
interests, and was the founding chairman of the Credit Guarantee Insurance Corporation
of Africa Limited.
She has 23 years’ experience in financial reporting at executive level. Fikile is a director of
D&D Company Proprietary Limited, a non-executive director and chairman of the audit
committee and a member of various other committees of Atlatsa Resources Corporation.
She was included in the coffee table book, “South Africa’s Most Inspirational Women”
(2011). Fikile mentors a number of young people, mostly women. She is also a member
of Women In Mining South Africa.
Chairman of the nomination committee and a member of the social and ethics committee,
the remuneration committee and the audit and risk committee.
Chief executive officer
BSc (Hons) (Geology)
Graham joined Harmony in 1995 as new business manager and was appointed to the
board on 6 August 2007. He has been in the mining industry for 43 years, initially
as a geological technician, then, after obtaining a BSc (Hons), as a geologist. His
operational and managerial experience was developed at a number of South African
gold mines and as chief executive of Harmony Australia. Graham is currently vice
president of the Chamber of Mines of South Africa. Post year-end, Graham indicated
that he will be retiring and will leave the company after a new chief executive officer
has been appointed.
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30  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Financial director
BCom, CA (SA), MBL
Frank was appointed to the board as non-executive director on 1 October 1994, and
as financial director in 1997. In 2004, he was appointed financial director of African
Rainbow Minerals Limited, and resigned as such during 2009. He was reappointed
financial director of Harmony in February 2012.
Frank joined the Rand Mines Group in 1981, where he obtained broad financial
management experience at an operational level. He was a director of various listed
mining companies and currently serves as a non-executive director on the board of
African Rainbow Minerals Limited.
Executive director
BA (Education), BA (Hons), (Human Resources Management) Joint Management
Development Programme, Global Executive Development Programme
Mashego joined Harmony in 2005 and has been responsible for group human resources
development, transformation and, most recently, government relations. He has more
than 20 years’ experience in human resources, acquired largely in the industrial sector.
Mashego was appointed as an executive director on 24 February 2010.
Joaquim was appointed to the board on 20 April 2005. A former president of Mozambique
(1986-2004), he also served as chairman of the African Union for 2003/2004. On leaving
the presidency, he established the Joaquim Chissano Foundation for Peace Development
and Culture, and has led various international peace initiatives on behalf of the United
Nations, the African Union and the Southern African Development Community to
Guinea-Bissau, the Democratic Republic of the Congo, Uganda and Madagascar. In
2006 he was awarded the annual Chatham House prize for significant contributions
to improving international relations and in 2007 he received the inaugural Mo Ibrahim
Prize for Achievement in African Leadership. Joaquim was appointed to the global
development programme advisory panel of the Bill and Melinda Gates Foundation in
December 2009.
Member of the nomination committee and the social and ethics committee.
Mine Managers Certificate (Metalliferous Mines), Mine Managers Certificate (Fiery Coal
Mines), Management diplomas (Unisa) and (INSEAD)
Ken was appointed to the board on 13 February 2008. He has a mining engineering
background with 39 years’ experience in the formal mining industry. He worked for the
gold and uranium division of Anglo American plc and its precursor for 37 years in various
senior positions.
Member of the technical committee and the investment committee.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  31
BSc (Hons), MBA , DBA , CD (SA)
Simo joined the board on 18 October 2002. He previously held senior management
positions at Spoornet (Rail and Terminal Services division), was vice president of Lonmin
Plc and chief executive of Rand Water. He is a non-executive director on the board of
Cashbuild Limited and facilitates programmes on corporate governance for the Institute
of Directors (South Africa), of which he is a member. He was also appointed as an
administrator of the South African Post Office to develop the strategic turnaround plan
following the resignation of its board.
Chairman of the investment committee and member of the audit and risk committee and
the remuneration committee.
Cathie was appointed to the board on 31 May 2007. After graduating from the University
of the Witwatersrand, Cathie served articles, qualifying as an attorney, notary and
conveyancer. She then joined the legal department of Dorbyl Limited before spending
16 years at Impala Platinum Holdings Limited, initially as legal advisor and, from 1998 to
2007, as executive director responsible for legal, investor and community affairs. She is
currently a trustee of the Impala Bafokeng Trust and chairs the St Mary’s School Waverley
Chairman of the remuneration committee and member of the investment committee
and the social and ethics committee.
MBA (Project Management), BSc
Mavuso was appointed to the board on 26 March 2011. He has 27 years’ experience in
management at executive level, and was involved in the successful transformation and
restructuring of various state-owned entities over a period of 16 years, until 2010. Mavuso
was director-general of the South African Department of Home Affairs and previously
served successively as chief executive officer of the State Information Technology Agency,
of South African National Parks and of SA Tourism. He was country representative of
international development organisations World University Service/Canada and CARE-
International in Ethiopia and Kenya. He also held senior management positions with the
United Nations Children’s Fund and the World Food Programme.
Member of the nomination committee and the social and ethics committee. Successor
to the lead independent non-executive director.
BAcc, HDip (Acc), CA (SA)
Karabo was appointed to the board on 3 May 2013. She is an executive director of
KMTech Proprietary Limited – a provider of integrated information and communications
technology solutions to enterprises. She has held various roles at Vodacom Group Limited
including that of executive head of Vodacom business as well as of Vodacom’s mergers
and acquisitions. She was inaugural chief executive officer of AWCA Investment Holdings
Limited and former head of global markets operations at Rand Refinery Proprietary
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32  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Limited. She was an associate and executive assistant to the former executive chairman
at Shanduka Group. She was seconded to Shanduka Coal, where she was a shareholder
representative, and also served on various boards representing Shanduka’s interests. She
is a qualified chartered accountant, a member of the South African Institute of Chartered
Accountants and of African Women Chartered Accountants. She is an independent non-
executive director of Merafe Resources Limited, Richards Bay Coal Terminal Proprietary
Limited, MTN Group Limited’s operating companies in Swaziland, Zambia and Sudan. She
is on the advisory board of Senatla Capital.
Member of the audit and risk committee and of the technical committee.
BSc (Hon), MSc
Vishnu was appointed to the board on 8 May 2013 and is currently executive head
of Anglo American Platinum Limited’s joint venture operations. Before joining Anglo
American Platinum in 2011, he was executive vice-president and head of South
African operations for Gold Fields Limited and, prior to that, vice-president and head
of operations at Driefontein Gold Mine. His 25 years at Gold Fields Limited were
interrupted by a two-year period with the Council for Scientific and Industrial Research,
where he was director of mining technology and group executive for institutional
planning and operations.
Member of the technical committee, the investment committee and the remuneration
John was appointed to the board on 1 July 2011. He was with Ernst & Young from
1967 to 2010, mainly in corporate audit, but for his final 10 years he played a business
development role across Africa. He led Ernst & Young’s mining group for a number of
years and acted as senior partner for some of the firm’s major mining and construction
clients. He was a member of Ernst & Young’s executive management committee and
was, until retirement, a member of the Ernst & Young Africa governance board.
Chairman of the audit and risk committee and member of the social and ethics
committee, remuneration committee and investment committee.
Mine Manager’s Certificate of Competency, MDPA, RMIIA, Mini MBA Oil and Gas
André was appointed to the board on 7 August 2007. He was appointed to the board
of African Rainbow Minerals Limited in 2004 and was its chief executive officer until
March 2012. He is currently executive director growth and strategic development
(based in the office of African Rainbow Minerals’ executive chairman). He headed
ARMgold Limited for five years and ARM Platinum for a year before being appointed
chief operating officer of Harmony after its merger with ARMgold in 2003. André has
more than 46 years’ experience in the mining industry, particularly in gold, platinum
group metals, iron ore, manganese, coal, chrome, nickel and copper.
Chairman of technical committee and member of the investment committee and the
remuneration committee.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  33
We have paid specific attention to the composition of our board to ensure that it
reflects our objectives and that board members have the skills and expertise necessary
to contribute to the sustainability of our company. Harmony has a unitary board
comprising a majority of independent non-executive directors. We exceed the 2014
Mining Charter requirement that 40% of the board be drawn from historically
disadvantaged South African groups. At year-end, that representation was 60%. Three
of Harmony’s non-executive directors are women and, in total, nine directors are drawn
from groups considered to be historically disadvantaged South Africans.
Critical to the achievement of our strategy is ensuring the company consists of teams
with the skills and vision necessary to reach strategic targets. The board is no exception
– it is made up of individuals who understand our industry, our sector and our strategy.
The diagram below explains the skills of our board members that are integral to our
strategic development.
Financial and
Social and
and project
Geology and
Expertise in
and local
gold mining
Composition of the board – by historically
disadvantaged South Africans (%)
Historically disadvantaged
South Africans
Composition of the board – by director (%)
Independent non-executive
Non-executive directors
Executive directors
Composition of the board – by gender (%)
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34  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Executive: Mineral resources development and growth
BSc (Hons), MSc, MBA, Pr Sci Nat
Jaco joined Harmony in April 1996. He has been in the mining industry for 20 years,
initially as a geologist. Most of his career has been spent with Harmony, progressing
from ore reserve manager at various operations to being the executive responsible
for reserves and resources. He has been Harmony’s designated competent person for
statutory reserves and resources reporting since 2004.
Executive: Human resources
National diploma (Human Resources Management), BTech (Labour Relations
Management), advanced diploma in labour law
Anton rejoined Harmony in 2005 as human resources manager at Evander. He has
more than 24 years’ experience in human resources management in the mining
industry. Previous positions include senior human resources officer at AngloGold
Ashanti Limited, and mid and senior managerial positions in the same field at African
Rainbow Minerals Gold, Samancor Chrome and Harmony. He has a proven track record
in the full spectrum of human resource functions. Anton also has an outstanding record
in managing labour matters, especially in conducting and guiding negotiations with
organised labour. He participates in the Chamber of Mines’ gold sector caucus.
Executive: Environmental management
BSc (Hons) (Industrial Microbiology) , MSc (Sustainable development) (UJ) and MBA
Melanie joined Harmony in 2009. Her expertise in sustainable development was built
over 17 years in the private mining and public sectors in South Africa as well as in
international environmental management exposure gained in the United Kingdom,
Australia, Papua New Guinea, Fiji and elsewhere in Africa. She has worked at leading
international mining companies, including De Beers Consolidated Mines Limited, BHP
Billiton Limited and Anglo American plc. She currently holds directorships at Western
Basin Environmental Corporation Proprietary Limited, Harambe Mineral Resources
Proprietary Limited and Phoenix Corporation (Business Ventures Investment No 1692
Proprietary Limited), is chair of Harmony’s environmental trusts and is a member
of Harmony’s social trust. In addition, she is a member of the Chamber of Mines’
environmental policy committee, the Far West Rand Dolomitic Water Association and
Mining Industries Group. She is also a board member of CareSA.
Chief operating officer: South Africa
BEng (Mining Engineering), BEng (Industrial Engineering), Mine Manager’s Certificate of
Alwyn joined Harmony on its merger with African Rainbow Minerals Gold Limited in
2003. He has 21 years of underground deep-level gold mining experience in different
supervisory and management positions. Before assuming his current role, he was the
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  35
executive responsible for health and safety. He also serves as the chairman of the board
of directors of Mine Rescue Services. Post year-end, Alwyn resigned as chief operating
officer and will leave the company at the end of November 2015.
Executive: Corporate and investor relations
BCom (Law), LLB BCom (Law), Higher Diploma in Tax, Diplomas in Corporate Governance
and Insolvency Law, Certificates in Business Leadership
Marian, an admitted attorney and conveyancer, has been employed by Harmony since
February 2003. She was appointed company secretary in 2003 and joined Harmony’s
executive committee in 2005 as executive: legal and compliance (which included taking
responsibility for company secretarial, risk management, internal audit and Sarbanes-
Oxley compliance). In 2008, she resigned as company secretary, enabling her to accept
her current position as executive: corporate and investor relations. Marian began
her career as an attorney and conveyancer in 1998 and held positions at Routledge
Modise Attorneys, Deloitte & Touche and the Standard Bank of South Africa Limited.
Marian also serves on the board of Rand Refinery Proprietary Limited as a non-executive
director and served on the Johannesburg Stock Exchange’s Social Responsibility Index
Advisory Committee until May 2015.
Chief executive officer: South-east Asia
BCompt (Hons), CA (SA)
Johannes joined Harmony in 1998 and was appointed chief executive officer of its
south-east Asia operations in 2008. He is responsible for Harmony’s Papua New Guinea
assets including an extensive exploration portfolio and the Morobe Mining Joint
Ventures’ assets. He joined Harmony as financial manager with operational and group
reporting responsibility for the Free State region. He was appointed group financial
manager in 2001, and relocated to Harmony south-east Asia as chief financial officer
two years later.
Executive: Risk management and services improvement
BCom, Development Programme in Labour Relations, Management Development
Programme, Advanced Labour Law Programme, Board Leadership Programme
Abré joined Harmony in 1997. He has more than 31 years’ experience in the mining
industry, specifically in finance and human resources at various gold mines and collieries
in the Rand Mines Group. As a member of Harmony’s executive committee, he was
initially responsible for industrial relations. He has held various positions in services and
human resources prior to accepting his current position.
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36  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Regional general manager
(responsible for Masimong, Joel, Unisel and Bambanani mines)
B.Sc. (Hons) (Mining), MBA, Mine Manager’s Certificate of Competency
James joined Harmony in 2011 as a general manager. He has been a regional general
manager since 2012, a title previously known as operating officer. James has gained
extensive operational and management experience in asbestos, nickel and gold mining,
with 17 years’ experience in the mining industry in total. He has worked in Zimbabwe
and South Africa. He was previously a council member of the prestigious Association of
Mine Managers of South Africa.
Regional general manager
(responsible for Target, Phakisa and Tshepong mines)
B. Eng (Mining Engineering), MBA, Professional Engineer (Pr. Eng)
Beyers joined Harmony on the merger with African Rainbow Minerals Gold in 2003.
He has 15 years’ experience in gold mining, gained on a variety of opencast, deep and
ultra-deep gold mines in both supervisory and management positions. Before assuming
his current role, he was general manager of Harmony’s Phakisa mine. Beyers is currently
the vice president of the Association of Mine Managers of South Africa.
Regional general manager
(responsible for Kusasalethu, Doornkop and Kalgold mines)
B.Sc (Mining Engineering), Wits International Executive Development Programme and
GIBS Advanced Management Programme, Professional Engineer (Pr Eng) and Mine
Manager’s Certificate of Competence
Phillip Tobias joined Harmony on 1 July 2014 as the regional general manager for
Kusasalethu, Doornkop and Kalgold. He has been in the mining industry for more
than 20 years, initially as a postgraduate mining engineer with Gold Fields Limited at
their various operations. His operational and managerial experience was developed at
a number of gold and platinum mines. Prior to joining Harmony, he was a consulting
mining engineer for Anglo American Platinum Joint Venture Operations. He was
appointed the first black president of the Association of the Mine Managers of South
Africa in 2008.
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Our business context
Managing our risks and opportunities
Material issues
Stakeholder engagement
Harmony Gold Mining Company Limited Integrated Annual Report 2015  37
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38  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Relevant Global Reporting Initiative indicators: G4-EC5
At Harmony we understand that, as a business, we operate in a complex and ever-changing
external environment – one that encompasses social, economic and environmental changes
in the short, medium and long terms. At the same time, the business climate and context
within our company are both dynamic and complex and, in many respects, are affected by the
many changes in the external environment. We need to understand the external and internal
environments as well as the relationships between the two to help us understand how we
should position Harmony for success.
Identifying and understanding the factors that drive our internal and external business context
require regular and consistent engagement with our stakeholders (see page 52). This section
should be read in conjunction with the section Managing our Risks and Opportunities on page 41.
The mining environment in South Africa has been particularly challenging in recent years. Most
notable has been the public debate on mining’s contribution to society and, since 2012, the
nature of the labour relations environment. The industry and, in many cases, stakeholders have
sought as far as possible to minimise negative impacts.
The gold price has been in steady decline since 2012, the first time since 2001, and in tandem
prices of our most important inputs have been increasing in real terms.
Over the past year, the average gold price received in US dollars per ounce decreased by
6%, while the average price received in rands per kilogram increased by 4%, due to an 11%
weakening in the average R/US$ exchange rate for the year to R11.45/US$.
There was a significant reduction in the US dollar gold price over the past year – from US$1,326/oz
at the beginning of the year to US$1,171/oz at the end of the year. However, there was a
concurrent depreciation in the rand:dollar exchange rate, from R10.68/US$ at the beginning of
the financial year to R12.16/US$ at the end of the period. The depreciation in the rand helped to
offset the reduced US dollar gold price with the rand per kilogram price remaining largely range
bound during the course of the year.
The significant drop in global crude oil prices over the past year (down by 43.5%) has led to
reduced global inflation expectations, which have in turn led to dampened demand for gold
as a safe-haven investment. At the beginning of calendar 2015, increased uncertainty as a
result of lower-than-expected economic growth in the United States and of the Swiss central
bank decision to remove its national currency’s floor to the euro, led to a short-lived increase in
US dollar gold prices. The increased likelihood of the United States Federal Reserve increasing
interest rates during the course of calendar 2015 has once again negatively affected gold prices.
As the financial year advanced, Asian gold consumers, who have been very supportive of the metal
for some years, became progressively uneasy as the metal’s price declined and fueled increasing
market volatility. Investors turned to the growing Shanghai stock market in expectation of better
investment returns and delayed gold purchases in anticipation of even lower prices.
After the end of our financial year, the picture changed radically as the Shanghai Stock
Exchange’s bubble burst and panic selling set in with growing uncertainty over China’s slowing
economic growth rate and its likely effect on the wider global economy. Prices of commodities
such as iron ore have fallen sharply with slackening demand from China’s steel mills while oil prices
have more than halved as the effects of United States shale gas production became apparent.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  39
Financial and regulatory interventions by the Chinese authorities briefly succeeded in supporting share prices. These interventions were
faltering by mid-August this year (2015), leading worried investors across the world to turn to gold, the tried and trusted safe haven.
Annual global gold production of 2 860 tonnes (2014 calendar year) is rapidly depleting the world’s ore bodies, which need to be
replaced. Over the past few years, the discovery of new profitable and competitive ore bodies has decreased significantly. A slower
pace of gold mine growth in calendar years 2015 and 2016 is likely, as lower prices delay new projects and reduce sustaining capital
expenditure. Long-term fundamentals remain in place for continued growth in commodity demand. Unlike other precious metals,
such as platinum, gold is not an industrial metal; its principal attraction lies in its historic role as a store of value, as a currency or
as adornment. Since the financial crash of 2008, increased investment demand – particularly from exchange traded funds, central
banks, India and China – has been among the gold market’s principal drivers. While demand for all other metals is subject to changing
technologies and economic developments, there is always a market for every ounce of newly-mined gold.
Harmony believes the gold price will remain flat in the medium term. In the long term, we may well see an increase in the gold price,
as gold has a long history as an investment tool and a store of value. It remains a fairly secure investment. And, while the price may
fluctuate, gold is always in demand in some form.
Our external environment is also important as it influences the way in which shareholders perceive investing in South Africa and Papua
New Guinea, in investing in gold and, ultimately, in investing in Harmony. While investors may, at present, be generally bearish about
the outlook for gold, some feel there are opportunities to trade stocks at certain levels. Shareholders taking a shorter-term view on gold
equities are benefiting from the volatility of our share price. Over the past year investor confidence in South Africa has been muted.
While most appreciate that there are gold assets worth investing in, they have raised concerns about production losses due to industrial
action. Closely linked to this is the concern that higher wage demands will exacerbate the cost challenges most South African mining
companies are already facing. Many investors are also apprehensive about the potential changes to legislation both in South Africa and
in Papua New Guinea, which could leave mining companies in an unstable regulatory environment. We at Harmony have earmarked
these as some of our material risks and address these concerns on page 50.
On the policy and regulatory side, amendments have been proposed to the Mineral and Petroleum Resources Development Act,
particularly a proposal that would empower the Minister of Mineral Resources to declare one or more minerals to be strategic and to
determine local prices for them. The previous Minister of Mineral Resources, Minister Ngoako Ramatlhodi, suspended its passing into
law pending further review. The Department of Mineral Resources and the mining industry disagree on the interpretation of the Mining
Charter’s ownership requirement – the 26% black ownership of companies – and have separately approached the High Court to resolve
the matter. Negotiations with the government on the proposed amendments to the Mineral and Petroleum Resources Development Act
and the Mining Charter continue through the Chamber of Mines, on behalf of the gold mining sector.
On the labour relations front, there were signs of a more stable environment in the period under review, though the environment has,
by no means, been unchallenging. The 2013 two-year wage agreement came to an end on 30 June 2015. The 2015 negotiations started
in May 2015, with the National Union of Mineworkers still being the majority union in Harmony at 66% by the end of June 2015, with
the Association of Mineworkers and Construction Union representing 15% of our workforce. At an industry level, representation of union
membership of the gold mining companies represented by the Chamber of Mines had the National Union of Mineworkers as the majority
union (at 52%) and the Association of Mineworkers and Construction Union at 30% at the end of June 2015 (see the section on Labour
Relations on page 79). The 2015 negotiations are focused on the sustainability of the industry, rather than affordability.
A three-year wage settlement was reached with the unions representing the majority of employees at Harmony and was extended to
all employees within the bargaining unit. For more detail on the wage agreement, please refer to www.harmony.co.za/investors/news-
It remains the responsibility of all role players to create an industry that will attract investment.
Further features of the external environment are increasing expectations and, indeed, the demands of external parties – communities,
local governments, non-governmental organisations and others – on the mining sector. As a company, we recognise that Harmony has
an important role to play as a corporate citizen. As a result, our relationships with all of our stakeholders are important – we engage
and listen before agreeing on mutually beneficial actions. We have sponsored a number of youth development programmes, created
job opportunities, built housing for local communities and provided bursaries, to name just a few of our community investment
projects. See pages 88 to 98 for more details.
Understanding Harmony
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40  Harmony Gold Mining Company Limited Integrated Annual Report 2015
The most important aspects of our internal environment remain the safety and well-being of our employees, and the integrity and
sustainability of our assets. Our internal environment is therefore shaped largely by factors which affect our employees or on which
our employees have an impact. The environment and mining processes, combined with the behaviour of people, bring with them
certain risks to our employees, which we aim to avoid, mitigate or manage. While we have seen significant improvements in recent
years, we remain committed to further improvement, which is why keeping our employees safe and healthy is highlighted in our
risks and is one of our material issues. (See page 50).
Occupational health risks are not the only health risks we work to mitigate – in South Africa our employees are at risk of contracting
human immunodeficiency virus and tuberculosis, both of which are highly prevalent in our society, and we have put in place various
initiatives to treat and prevent these illnesses. For more on this see page 65.
Both in South Africa and in Papua New Guinea, the level of skills among employees and prospective employees remains of great
concern. High levels of illiteracy, often combined with relatively low levels of skills, limit the opportunity for growth and development
among employees and their progression within the company. At Harmony we believe that our employees should be able to improve
their lives through their work. As a result we offer extensive training and development programmes, including adult basic education
and training, portable-skills training and on-the-job training. In addition, we invest in community education programmes to ensure
that quality education is available at a young age and that promising students are given the tools to thrive. For more on these
initiatives see page 88.
We acknowledge the imbalance caused by historical systems in South Africa and work to remedy this through a recruitment policy
that focuses on employing historically disadvantaged South Africans at all levels of the company, from the board through to entry-
level employees. Harmony is committed to black economic empowerment in South Africa, through direct equity ownership, our
procurement spend, management representation and through our employee share ownership scheme, which allows employees
to share in the company’s success. We have also put considerable time and effort into developing a successful women-in-mining
project, which has seen many women find fulfilment in their underground roles. See page 168 for more detail on how we have
transformed the company in line with Mining Charter requirements.
By understanding what we need to do to help our employees feel safe and satisfied at work and by implementing various initiatives
to achieve this and maintain open communication with them, we manage many of the factors that have an impact on our internal
environment. Our emphasis on open communication also allows us to understand any emerging issues that may influence our efforts
and gives us time to deal with them before they escalate.
Masimong underground
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  41
By identifying and understanding the risks and opportunities facing our business, we are able to mitigate them or manage them to
the best of our ability, thereby positioning the company for future challenges and growth prospects.
At Harmony, our approach to risk relies on continuously monitoring and, when appropriate, revising our mitigation procedures. Our
risk management strategy is a management tool that aims to be practical and effective, rather than focusing only on compliance.
For this reason, risk management is embedded within the day-to-day activities of the business, rather than being something that is
dealt with only once a year.
Our risk management process is guided by regulatory and legislative requirements, and is championed internally by our chief
executive officer. The audit and risk committee plays an oversight role, while management is responsible for implementation
and compliance. While the audit and risk committee is responsible for overall oversight of the adequacy and effectiveness of the
company’s risk management process, the reporting on performance regarding risks is extended for the attention of the various board
Because relationships form part of everything we do, our risk management process is designed to accommodate engagement – from
conversations between management and the board regarding risk, to discussions with various stakeholders – to ensure that we are
addressing the correct risks appropriately.
The process has its starting point in the group’s strategy. We need to understand what can affect our ability to deliver on our
strategy, as well as to identify what opportunities will help us achieve our goals. In addition to this we also benchmark the risks and
opportunities identified against those of our peers. This helps to ensure that the risks we identify are not only specific to Harmony
but also cover industry challenges.
In preparing their formal reports to the board, the executive committee and the audit and risk committee meet quarterly to examine
risks and discuss any changes in their importance or in their mitigation. The audit and risk committee’s review is supplemented by
feedback obtained from the various board sub-committees’ reviews of specific risks falling within the ambit of their responsibilities.
Each quarterly examination is based on the experiences at the operations, feedback from key stakeholders, external factors and
management meetings. In addition, various teams within the company address risk on a regular basis as part of their day-to-day
roles. This creates a continual conversation about risk at different levels, allowing any changes to be captured on a continuous basis.
While risk management forms part of our day-to-day processes, a formal weekly risk review is undertaken by the management
teams at our operations, to identify and prioritise specific high-risk issues at an operational level. These risk reviews are reported to
the respective regional general managers and further oversight is carried out by the operations’ committee on a continuous basis.
Risk is a standard item on the agenda of the audit and risk committee meeting and the committee’s role played in our risk management
process is multi-dimensional.
The audit and risk committee’s primary task is to oversee the identification, prioritisation, management and monitoring of risk at
Harmony. Our risk management process reflects our integrated approach to business. Therefore the committee – supported by the
various board sub-committees – examines all risks affecting our strategy.
To do this, the committee spends considerable time reviewing and evaluating the processes in place to identify, monitor and manage
risk. These include our risk management policy and process, our methodology and planning, our formal risk assessment, our internal
controls and assurance process, our risk appetite and tolerance and our responses to risks. Once the audit and risk committee is
satisfied with these, responsibility for their implementation devolves to executive management and their teams. In their turn, their
task is to ensure that these risk processes are constantly applied in the day-to-day operations of the business.
Understanding Harmony
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42  Harmony Gold Mining Company Limited Integrated Annual Report 2015
The audit and risk committee takes its findings from these reviews to the board. The top ten risks and mitigating factors are reported
to the board on a quarterly basis.
During the year under review, we formulated group-level risk appetite and tolerance levels, and continued to monitor our risks to
identify and manage the most material ones facing the company.
While our group-level risk appetite and tolerance levels are subject to formal review on an annual basis, these are continuously
monitored for relevance in accordance with changing macro-environment factors, and the tolerance level is further defined at
lower/granular tolerance limits per risk. Our group-level risk appetite statement is:
Harmony is in the business of gold mining in South Africa and Papua New Guinea
It is a high-risk high-reward business. We are involved in the whole gold mining value chain from exploration, feasibility
studies, building and buying mines, operating mines and closing and rehabilitating mines at the end of their life
We are exposed to the volatility of the gold price and exchange rates, and are unhedged by choice
We operate well in emerging economies and have the ability to deal with the socio-political dispensations in these countries
Exploration remains one of the most effective ways to grow an ore-body and create value, and for this reason we continue
to invest in exploration
We have an appetite for change and continuous improvement and are continuously looking for innovative ways to improve
our existing mines and acquire mines that we can improve on operationally
Deep-level gold mining in South Africa is very labour intensive – we have the skills to deal with the challenges of
multi-stakeholder labour relations
We continuously improve the health and safety of our employees
We have experienced teams with strong values committed to deliver
Various risk factors contain an element of volatility, for example, commodity prices and exchange rates, labour dynamics and the
regulatory environment. As a result, our risk profile reflects the dynamics of industry and Harmony-specific issues and opportunities
at a point in time.
Kalgold plant
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  43
The following two graphs and table show our top strategic risks and opportunities:
1.   Labour disputes / labour unrest
Not achieving our operational
Ability to attract capital in a low
gold price environment
4.   Safety risk
Consistency of electricity supply
Gold price and foreign exchange
fluctuations (varying from planned
Socio-economic, political and
regulatory changes
8.   Major infrastructure incidents
Not growing the company for future
10. Potential liability for occupational
health diseases
(Earnings: R500m+
NPV: R1bn+)
(Earnings: R100m - R500m;
NPV: R500m - R1bn)
(Earnings: R50m - R100m;
NPV: R100m - R500m)
(Earnings: R10m - R50m;
NPV: R10m - R100m)
(Earnings: < R10m+
NPV: < R50m+)
Existing risk – no movement
Existing risk – movement
from previous assessment
New/emerging risk
Gold price and foreign exchange
2.  Productivity improvements
3.  Growing for future ounces
4.  New technology
(Earnings: R500m+
NPV: R1bn+)
(Earnings: R100m - R500m;
NPV: R500m - R1bn)
(Earnings: R50m - R100m;
NPV: R100m - R500m)
(Earnings: R10m - R50m;
NPV: R10m - R100m)
(Earnings: < R10m+
NPV: < R50m+)
Existing opportunity –
no movement
Understanding Harmony
L: Low
M: Medium
H: High
L: Low
M: Medium
H: High
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44  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our risk profile contains potential events and/or factors that pose both a threat as well as an opportunity. These downside and upside
risk factors are all duly taken into account in our day-to-day business activities and their recognition plays an integral role in the
formation and management of our group strategy.
Link to strategy
Labour disputes/
labour unrest
In South Africa unstable labour
relations are one of the largest
risks facing the mining industry as
a whole. In recent years there has
been an increase in inter-union
rivalry and prolonged strikes for
higher wages. If unmanaged this
could result in industrial action,
as well as work stoppages and
increased indebtedness for our
employees, which could further
aggravate the problem.

In Papua New Guinea we face
both labour and landowner unrest.

Apart from the effect this has
on our relationships with our
employees and communities, it
also has the potential to decrease
our production, lead to damage
to our assets and increase the
need for security because of
increased safety risks.

In addition, prolonged strikes
can have adverse financial
impacts on employees,
Harmony and the surrounding
communities – something
that undermines our work to
bring economic stability to the
environments where we work.
This is a risk where we believe
that the key to effective
mitigation lies in relationships.
In South Africa, we have
on-going engagement with
organised labour, at both mine
and company level, and take a
pro-active approach to addressing
employees’ concerns. In
consultation with the Chamber of
Mines and other gold producers,
we pro-actively seek to address
labour-related issues to arrive
at solutions which will serve
the industry as a whole – while
being sensitive to the long-term
sustainability of producers as well
as the needs of the workforce.
These considerations will again
be relevant to the 2015 wage
negotiations in South Africa. We
furthermore have contingency
plans in place which could be
called upon in the event of strike
action – such plans address,
inter alia, potential safety threats
as well as short-term cost
curtailment measures.

We also embarked on a
consultation process on the
Employee Relations Policy
Framework. In Papua New
Guinea we continuously engage
with all stakeholders, including
employees, provincial and local
government, landowners and
For more on this see page 79.
There is no question about the
importance of this risk to our
strategy – we cannot achieve
any of our objectives without
the support of the people of
Harmony. By maintaining a stable
workforce we are able to provide
our employees with decent
working conditions, while also
being able to work consistently to
achieve our strategy.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  45
Link to strategy
Not achieving
our operational
While the risk exists that we
may not meet our operational
objectives it is something we
monitor closely. In particular,
unplanned events, operational
results, cash flows and gold
price fluctuations can all affect
our ability to meet our strategic
objectives, and so are factors that
we watch carefully. Apart from the
long-term impact of not meeting
objectives on our strategy and
sustainability, it can also affect
our financial results and investor
confidence, and could eventually
lead to mine closures.
During FY15 we continued
with the identification and
implementation of initiatives
to improve productivity. This,
coupled with stringent cost and
capital control measures and the
continued focus on engineering
risks will remain an on-going

During the year we completed a
life-of-mine optimisation process
which resulted in greater focus
on mining profitable and higher
grade areas at our South African

We responded to a lower gold
price by rationalising our assets
and restructuring our portfolio.
We will continue to improve the
performance of our assets by
focusing on mining only safe,
profitable ounces. For more on
this refer to page 120 of the
Operational Performance section
of this report.
Ultimately, Harmony needs to be
a successful, resilient business
before it can be a responsible
corporate citizen and employer of
choice. As a result, achieving our
operational objectives is the crux
of our strategy, as it allows us to
strengthen and grow our business
and to ultimately share the
rewards with our stakeholders.
Ability to attract
capital in a low gold
price environment
In order to grow our business we
need to be able to fund projects
and capital expenditure. While
the mining industry is currently
experiencing a cyclical downturn,
the challenges of raising capital
are exacerbated by rising costs,
a global lack of appetite for gold
investments and investors’ focus
on capital discipline and cash

The South African socio-economic
climate furthermore creates
uncertainty for investors, and
while commodity prices remain
low we may struggle to remain
competitive – all this can impact
our long-term investment case and
stunt our ability to create value.
To keep our cash flow healthy,
a variety of mitigating actions
are considered. These include
focused efforts to achieve our
operational objectives, as noted
in the previous risk, as well as
monitoring of capital markets
for opportunities. While our
focus remains on mining only
safe and profitable ounces, we
also evaluate other strategic
solutions to unlock the value of
our existing assets – strategies
which need to respond to share
price pressures and our ability to
continue the funding of existing
and future expansion and
exploration projects.
The ability to raise funding is
integral to our strategic intent
of growing our business and to
maintain our ability to create value.
Understanding Harmony
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46  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Link to strategy
Deep-level mining has inherent
safety risks. We prioritise safety
primarily to protect our people,
who are at the centre of all we
do at Harmony. Apart from the
effect safety has on our employee
mindsets and productivity, it also
has the potential to affect our
reputation, stop production, lead
to litigation and decrease the
overall value of Harmony. We view
safety as an opportunity to engage
with many key stakeholders,
particularly our employees, and to
entrench our values.
Safety is one of our five fundamental
values, making it the basis of all we
do. Apart from the everyday safety
procedures we have in place, we also
engage with employees regularly on
the topic through training sessions
and open discussions.

We maintain a risk-based safety
management system that is
integrated into our daily work
philosophy and we continuously
adopt the industry’s leading
safety practices.

We also believe that if an incident
happens it is best to learn from it.
As a result our safety department
verifies and evaluates every injury
on an on-going basis. In addition,
we have also standardised auditing
and reporting of physical conditions
at workplaces.

For more on this refer to page 61 of
the Safety and Health section.
Safety is integral to the
sustainability of our business – it
helps foster our relationships
with employees, maintain stable
production and retain our licence
to operate. It is a feature of our
values, our material issues and
underlies our strategy.
Consistency of
electricity supply
Mining is an energy-intensive
industry and the cost of energy
is material to our total cost
base. Our risk related to South
Africa’s energy crisis is two-fold.
Firstly, the rising cost of energy
is placing more pressure on our
margins. Secondly, the reliability
of uninterrupted supply threatens
the achievement both of our safety
and of our production targets.
While we continue with efforts
to focus on the reduction and
optimisation of our energy
consumption, we are also
implementing load shifting
opportunities which can be
implemented with the least
disruption to our operations
and employees.

Various efforts are under way
to identify alternative sources
of energy, including renewable
energy in our energy portfolio.

Our efforts to secure sustainable,
reliable and cost-effective energy
expand to active participation
in collaboration with the South
African Minister of Energy to
implement a five-point plan
aimed at stabilising the country’s
electricity supply risks.

For more detail, see page 104 of the
Environmental Performance section.
Mining safe, profitable ounces
is integral to the sustainability
of our business. Thus, securing
energy in a sustainable, cost-
effective and uninterrupted
manner speaks directly to our
business goals and strategy.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  47
Link to strategy
political and
regulatory changes
It is imperative to our business
that we maintain our licence
to operate. This means that
we need to stay up to date
and comply with all necessary
socio-economic, political and
regulatory changes in both South
Africa and Papua New Guinea.

In South Africa these regulations
include existing and new labour
legislation, political and regulatory
changes, and Mineral and
Petroleum Resources Development
Act amendments, among other
regulatory requirements.

In Papua New Guinea, we adhere
to local legal and fiscal framework
changes, while also addressing
increased socio-economic
investment expectations.

Not meeting these requirements
could impact our reputation
and investor confidence in our
business. It could also mean that
we need to pay fines for non-
compliance or that we could lose
our licence to operate.
We believe that the key to
mitigating this risk is to develop
and maintain healthy relationships
with the parties involved, so as
to always understand what is
expected from us. For more on
our stakeholder engagement
during the year see page 52.

In South Africa, we have regular
interactions with the regulator
as a contribution to influencing
legislation as well as regular
meetings with community leaders
to address community concerns.
In addition we align our social
and labour plans with municipal
Economic Development Plans,
and we keep organised labour
abreast of developments in
labour legislation.

During FY15, the Department
of Mineral Resources and the
mining industry agreed to seek
a declaratory order from a
South African court to address
a difference of opinion on how
some black empowerment
transactions are recognised.
Harmony is part of this pro-active
collaboration and we believe that
our performance in terms of each
of the nine pillars set out in the
Mining Charter illustrates that we
do more than just comply.

In Papua New Guinea, the
Morobe Mining Joint Ventures,
Harmony and the local Chamber
of Mines collectively participate in
industry consultation.
Maintaining our licence to
operate is a material issue for us,
as we recognise the requirements
of South Africa and Papua New
Guinea, and strive to be a socially
responsible company. In addition,
maintaining our right to mine is
at the heart of our strategy, as it
allows us to continue operating
and building a sustainable
business that shares the benefits
we create.
Understanding Harmony
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48  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Link to strategy
Major infrastructure
As a mining company, we rely on
large infrastructure in order to
maintain operations at our mines.
Any breakdowns or infrastructure
failures have the potential to
cause production losses and
expensive damage that could take
time to repair as well as threaten
the safety of our employees.
We spend a considerable amount
of time on the maintenance
of infrastructure to proactively
address any potential problems.
During the prior financial
year, we strengthened our
senior engineering capacity
and improved our operational
risk management processes.
Furthermore, in line with our
focus on engineering risks,
we implemented a holistic
engineering strategy during the
year under review. For more on
this see page 121.
Much like achieving our
operational objectives, avoiding
major infrastructure incidents
relates to the everyday business
side of our strategy – the only
way to ensure a sustainable
business is to continue mining
daily, and we require functional,
safe infrastructure to do so.
Growing the
company for future
A risk facing any mining company
is that of sustainable production
and of maintaining reserves and
resources. Harmony is no different
and we use exploration as an
opportunity to improve our future
production. However, we are
aware of and need to manage the
opportunity loss associated with
not increasing our ore reserves
sufficiently. Also, we face the risk
that exploration may not result in
a reserve base increase. All of this
can affect investor confidence in
us and our growth strategy.
We face this from various sides.
In order to maintain a competitive
advantage, we aim to be one of
the lowest cost producers
(R/tonne) in the sector. In ensuring
that exploration leads to sufficient
resources, we have established
a new business team to review
and recommend opportunities
to the board as well as scientific
targeting of exploration targets
and professional exploration
teams. During the year under
review we established an
exploration joint-venture with a
junior mining company adjacent
to one of our Free State mineral
rights areas. This joint venture will
aid us in growing our company in
an economical manner.

In Papua New Guinea, we are
actively pursuing the development
of the Golpu project in order
to gain exposure to copper. In
South Africa we are evaluating
opportunities where we can exploit
our existing operating strengths
while diversifying. Furthermore, we
will continue to focus on mining
only safe, profitable ounces.

For more on this, see the sections
in this report entitled Projects
and Exploration on page 153 and
Resources and Reserves on
page 159.
In order to remain globally
competitive (our ultimate strategic
goal), we must continue to have
available profitable reserves and
resources to mine. By focusing
on exploration to secure quality
tonnages, we are able to do this.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  49
Link to strategy
Potential liability
for occupational
health diseases
This is another industry-wide
issue that we, as well as our
South African peers, face with
regard to work-related illnesses,
such as silicosis. The risk is two-
fold. Firstly, we need to address
what has happened in the past.
Secondly, we work now to
mitigate occupational health risks
to ensure that this risk does not
continue into the future.
We mitigate our health risks
through a pro-active health
strategy as well as an at-work
management programme.

During the year Harmony and
industry peers continued with
efforts to develop a long-lasting
solution to address the socio-
economic impact of silicosis.

For more on this see page 69.
Much like the nature of this risk,
the impact it could have on our
strategy is two-fold. Firstly, our
people are at the heart of our
business and we want to do all
we can to ensure they remain
healthy. Secondly, the potential
liability could decrease our cash
flow and make us less resilient in
the future.
Gold price and
foreign exchange
(varying from
planned levels)
We are highly geared to the
gold price and foreign exchange
fluctuations. An improvement
in the gold price provides an
immediate advantage, while lower
gold prices decrease our margins.

Our ability to deliver on
production and growth targets to
counter lower commodity cycles
is important.
Mitigation includes conservative
planning parameters with
re-designed planning processes
to focus on de-bottlenecking
and optimisation.

Mitigation also includes
the rescheduling of capital
expenditure and ensuring that
sufficient funding facilities exist.
Ultimately, Harmony needs to be
a successful, resilient business
before it can be a responsible
corporate citizen and employer
of choice. As a result, being
profitable and achieving our
operational objectives are the crux
of our strategy, as they allow us to
strengthen and grow our business
and, ultimately, to share the
rewards with our stakeholders.
To be a successful business,
we need to produce enough
gold to be profitable. This
relates to productivity which
is affected, in simple terms,
by labour. If we have enough
skilled, healthy, motivated and
safe working labour, we are
able to produce our targeted
gold production. In addition, we
focus on infrastructure, technical
efficiencies and safe
working areas.

Productivity is both a risk and
an opportunity for Harmony.
If well-mitigated/managed it
means we are able to produce
volumes that are either in line
with or above expectations. This,
in turn, strengthens our business.
However, if we produce below
target it can destabilise our
business, and make it harder for
us to reach other business targets.
As a result it is essential that we
are producing enough tonnes or
ounces per person working.
This is a complex risk, and we
therefore mitigate it in various
ways. These include a proactive
health strategy and at-work
management programme. See
page 65 in the Safety and Health
section for more on this.

As with many of our risks
we recognise how important
relationships are in managing
productivity and we work with
both organised labour and our
employees to prevent absenteeism.
A stable workforce enables
sustainable productivity which
is imperative for achieving our
business goals.
Understanding Harmony
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50  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Link to strategy
New technology
New technology provides us with
an opportunity to increase our
competitive advantage and make
our business model more resilient
as we move into the future.
For example, we can use new
technology to respond to cost
pressures such as electricity tariff
increases and labour, which will
allow us to make our production
and costs more efficient. This, in
turn, can help us increase revenue
and share more benefits.
Ways in which we are working on
capitalising from new technology
include safety improvements,
energy efficiency, alternative
energy mix, water conservation
technology, nuclear radiation
rehabilitation and we also
continue to evaluate new mining
methods. For more on this, refer
to page 65 of the Safety and
Health section, page 112 of
the Environmental Performance
section and page 120 of the
Operational Performance section
of this report.
Every one of our strategic
objectives can be enhanced by
embracing innovation through
new technology which will
increase efficiencies, productivity
and safety.
For more detailed information pertaining to risk factors and their potential impact see the Form 20-F as filed with the United States’
Securities Exchange Commission at www.harmony.co.za/investors/reporting/20f
Our process of determining material issues emanates from our risk management process. We combine this with the Global Reporting
Initiative’s materiality assessment, in which we perform a gap analysis and benchmark against our peers to determine our key
indicators. In addition, we consider those indicators that are most closely related to our values and strategy. From this process, we
have derived the following five material issues, which encompass most of our key risks while also addressing our values.
1. Keeping our people safe and healthy
People are at the centre of our business. While we have made significant progress in recent years in improving safety and health
underground, safety remains a priority for us. Measured in terms of fatalities, Harmony achieved the best safety performance
recorded in 14 years. The fatal injury frequency rate for our South African operations decreased by 61% to 0.11 per million hours
worked (FY14: 0.28). The fatal injury frequency rate for the Papua New Guinea operations for the year was 0.22 (FY14:0.00) per
million hours worked. The lost-time injury frequency rate for the South African operations was 9.57 per million hours worked
(FY14: 8.09), a deterioration of 18%, mainly as a result of the Kusasalethu fire incident where 152 people were classified as
lost time injuries, while that for the Papua New Guinea operations was 3.79 (FY14: 0.00). In all, 24 514 shifts were lost due to
occupational injury in South Africa (FY14: 25 338) and 24 in Papua New Guinea (FY14: 0). We will continue with a pro-active
people-focused approach, placing attention in the areas of training and communication to entrench safe behaviour in the workplace.
We understand the need to make further safety advances by applying new technology and/or by advancing protection equipment.
Physical danger is not the only threat to our employees who also face occupational health risks from working underground. We
address all operational health risks and offer treatment for a variety of other health problems. We believe that prevention is better
than cure and our pro-active health strategy and programmes are integrated and holistic. Our aim is to ensure our employees
return home safely and in good health. For more on safety and health see page 58.
Relevant Global Reporting Initiative indicators: Occupational health and safety (G4-LA6, G4-LA7)
Related values: Safety, Accountable, Connected
Related key risks/opportunities: Safety, potential liability for occupational health diseases, achieving our operational objectives,
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  51
2. Achieving our business objectives
The success of our core business drives what we do and what we are able to do. This does not mean that we are focused
only on short-term success. As explained in the section Our Strategy and Investment Case (see page 25), our aim is to create a
viable business for years to come. As a result, we also consider our future objectives, such as using technology and innovation,
diversifying our resource base, and ensuring we have projects in place to sustain and grow our production.
Relevant Global Reporting Initiative indicators: Economic performance (G4-EC1, G4-EC7, G4-EC8)
Related values: Accountable, Achievement
Related key risks/opportunities: Safety, achieving our operational objectives, discovery/ acquisition of quality ore reserves, ability
to attract capital in a low gold price environment, new technology, productivity improvements
3. Maintaining stability in our workforce
Amid a potentially fractious industrial relations environment in the South African mining industry, we focus on having positive and
open relationships with our employees and the trade unions that represent them. By fostering conversation, we understand and
are able to address grievances before industrial action. The benefits of a stable industrial relations climate are extensive. We want
to create workplaces where employees feel safe, respected and valued. A stable workforce contributes to our aim of meeting
our business objectives, as it results in lower employee turnover and stabilises production. The benefits of this are shared with
employees through production bonuses, reward and recognition programmes and the employee share ownership scheme. For
more on these see page 78.
Relevant Global Reporting Initiative indicators: Labour/management relations (MM4), Employment (G4-LA1)
Related values: Honesty, Connected and Accountable
Related key risks/opportunities: Labour disputes/ labour unrest, safety, achieving our operational objectives
4. Protecting our licence to operate
To be a successful company, we need to earn and retain our right to mine. This requires a clear understanding of local legislation
and regulations, as well as solid relations with government, communities, industry bodies and local business partners. We seek
more than compliance: we will transform our workforce, ensure good corporate governance, and be a responsible corporate
citizen. For more on our compliance see page 179.
Relevant Global Reporting Initiative indicators: Diversity and equal opportunity (G4-LA12), Local communities (G4-S01),
Environmental compliance (G4-EN29)
Related values: Accountable, Honesty
Related key and/or opportunities: Socio-economic, political and regulatory changes
5. Managing our impact
The resources available to our business are finite and we respect this. We are environmentally responsible through careful
monitoring of our consumption, emissions and impact. Our commitment to improving health and safety speaks to our need to
protect human resources, while our training and development programmes highlight how we encourage each employee to learn
and grow their skills. Responsible resource management is also crucial to our socio-environmental rehabilitation planning. While
our mines are operational, we want to do all we can to improve the living conditions of employees and communities, and to bolster
both socio-economic and ecological developments, so that when our mines close we will leave behind us viable communities able
to support their economies and which are not plagued by environmental or health issues. This entails planning now, ahead of mine
closure, and is something we are constructively working towards. For more on our skills training and rehabilitation initiatives see
pages 81 and 116 respectively.
Relevant Global Reporting Initiative indicators: Energy (G4-EN5), Effluents and Waste (G4-EN22, G4-EN23, G4-EN24, MM3),
Local communities (G4-S02, MM6, MM7)
Related values: Safety, Accountable, Honesty
Related key risks/ opportunities: Major infrastructure incidents, socio-economic, political and regulatory changes
Understanding Harmony
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52  Harmony Gold Mining Company Limited Integrated Annual Report 2015
To be a profitable, responsible and sustainable business we must have mutually beneficial and sustainable relationships with our
various stakeholders. In pursuit of this, we believe it essential that we understand and meet our stakeholders’ needs where possible.
Effective engagement is essential to the establishment of such mutually beneficial and sustainable relationships.
Relevant material issues:
Maintaining dialogue and promoting stable relations in our workforce
Engaging with our shareholders to create an understanding of the company’s investment case
Protecting our licence to operate
Ensuring that host communities have a voice in our business
Ensuring alignment with government imperatives as they relate to our business
To Harmony, stakeholder engagement is not just about policies and guidelines. Effective stakeholder relations are about building
lasting relationships, and making a meaningful contribution to the communities and countries in which we work.
Our stakeholders include, but are not exclusively, shareholders, our employees and contractors, communities in the areas in which
we operate, trade unions, government regulatory bodies, suppliers, analysts and the media.
The primary aim of communicating with stakeholders is, simply, to share and gather information to inform our business decisions.
This communication is guided by both our values and our strategic intent:
Improve the lives of host communities/stakeholders through participation in appropriate programmes or projects
Find solutions to the various challenges facing our society and host communities, including unemployment and lack of economic
activity, by collaborating with stakeholders and forming meaningful partnerships
Find a balance between the expectations of stakeholders and shareholders
Our communication with stakeholders is inclusive, so that this communication is:
Meaningful, and addresses what is material to stakeholders
Complete, so that we understand the views, needs, perceptions and expectations linked to issues that stakeholders view as material
Responsive, so that we respond to material issues timeously, coherently and appropriately
Our approach to communication, with internal and external stakeholders, is integrated into the way we do business.
Stakeholder relations are an integral part of our business and shape our actions in determining strategy, addressing problems,
and allocating resources.
Effective stakeholder engagement helps us better manage risks, opportunities, and enhances the company’s reputation, which is
essential to the long-term sustainability of Harmony. Furthermore, effective, meaningful stakeholder engagement contributes to our
store of knowledge as a company and provides information which leads to improved decision-making processes.
Every executive member of Harmony is involved in building and maintaining stakeholder relationships – both internal and external.
The board social and ethics committee oversees stakeholder relations, while the board itself monitors relations with stakeholders.
Our engagement complies with relevant legislation and standards, including ISO 14001, OHSAS 18001 and ISO 9000. Using our
stakeholder engagement policy and strategy we identify various stakeholders, internal and external, across our business process.
In conjunction with this, and in line with ISO 14001 implementation, a formal stakeholder analysis was conducted using experienced,
external social consultants. From these two processes, we developed the following stakeholder map.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  53
Below, we have detailed our communication with key stakeholders, highlighting their expectations as communicated to us, the
specific benefits to be gained from effective communication and information on our interaction with each stakeholder during the
year. In all our engagements with stakeholders, we strive for communication that is regular, consistent, relevant and transparent.
and contractors
of capital
Media and
customers and
and regulators
Internal stakeholders
External stakeholders
Understanding Harmony
Expectations: Consistent returns and growth in investment directly and relative to peers, timely and transparent disclosure on
objectives, performance and expectations.
Benefits of engagement: Share price resilience, continued investment, creating an understanding of the company’s short- and
long-term objectives; open, on-going conversation allows us to deal with any concerns or queries at an early stage.
Discussions during the year: Shareholders asked questions pertaining to planned and on-going restructuring, expectations on wage
negotiations, impact of power supply restrictions in South Africa, clarity on changes to grade and planned improvements, production,
safety, Harmony’s strategy, our ability to fund Golpu, and sustaining cash flows.
How we engage
How often
Information and compliance releases through the Stock
Exchange News Service of the Johannesburg Stock Exchange
and through the Electronic Data-Gathering, Analysis and
Retrieval system of the United States Securities and Exchange
As required and on-going
Harmony and related South African gold mining industry
websites (
www.harmony.co.za, www.thisisgold.co.za and
Releases and information sent to the shareholder database
Results presentations and webcasts
Ad hoc presentations on specific issues
As required
Throughout the year, the chief executive officer and senior
executives present the Harmony story at global conferences
and/or by means of virtual conferences.
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54  Harmony Gold Mining Company Limited Integrated Annual Report 2015
How we engage
How often
Investor roadshows
Throughout the year. Travel has been reduced in line with our
cost-saving initiatives. More regular calls (conference and/or one-
on-one) have been set up to compensate for not having meetings
in person (especially as it relates to international investors). We
have also explored participation in virtual conferences.
Documents and correspondence sent by post and e-mail
Quarterly and as required
Conference calls
One-on-one meetings
Integrated report
Expectations: A safe, stimulating and rewarding work environment that offers opportunities for personal and career development.
Benefit of engagement: A more-engaged organisation with a clear vision, fewer strikes, high levels of productivity, low turnover.
Discussions during the year: In our engagements with employees the following issues have been raised and discussed – safety and
health, operational challenges, asset optimisation, productivity improvements, recognition and rewards, wage negotiation demands, and
opportunities at other Harmony mines.
How we engage
How often
Employee engagement surveys
Meetings with organised labour
On a regular basis
General manager’s presentations to all mine employees
General manager’s mass meetings
Chief executive officer roadshows to all our operations
Every six months
Future forums, mass meetings, work groups
As required
Newsletters, mine TV, podcasts, text messages, posters, emails,
intercom system, desktops, screen savers and signage
Harmony website (www.harmony.co.za)
Intranet (local, internal Harmony internet)
Company emails
Sport at shafts (such as cricket, soccer, netball or rugby) is used
to share information and build relationships
Shaft and cultural events
When required
Briefs or memos
When required
Communication campaigns
When required
Suggestion box at all operations
Community media houses (newspaper and radio)
When required
Harmony and related South African gold mining industry
websites (
www.harmony.co.za, www.thisisgold.co.za and
Expectations: Compliance to host country legislation, cooperation and continual improvement and contribution to national policy formulation.
Benefit of engagement: The regulator and Harmony are better able to engage and reach agreement on compliance and our licence
to operate.
Discussions during the year: During engagement with the government and regulators this year certain regulatory matters were brought
to our attention and we were encouraged to participate in joint initiatives, such as the Deputy President’s Framework Agreement for a
Sustainable Mining Industry. We were also closely involved in influencing legislative changes such as those proposed to the Mineral and
Petroleum Resources Development Act, environmental management plans, the National Environmental Management Act, etc.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  55
How we engage
How often
Industry bodies
As an active member of the Chamber of Mines, Harmony contributes to
policy formulation
Personal interaction
Dedicated senior executive responsible for government relations
Harmony website (www.harmony.co.za)
Expectations: Mutually beneficial relationships founded on integrity, constructive engagement and mutually beneficial outcomes.
Benefit of engagement: Firm understanding of our industry and our place in it.
Discussions during the year: During the year under review we worked closely with the Chamber of Mines regarding changes
to the Mineral and Petroleum Resources Development Act, we partnered with them and other gold mining companies for a joint
communication campaign during the wage negotiations and seeking a declaratory order in respect of the ownership requirement
as per the Mining Charter.
How we engage
How often
As required
Meetings, for special interests such as wage negotiations
As required
Harmony website (www.harmony.co.za)
Expectations: Mutually beneficial relationships founded on equal opportunity and integrity.
Benefit of engagement: Reliable supply chain management. Sustaining solid working relations cements current partnerships and paves
the way for future work and a continuous supply of goods and services at the best price.
Discussions during the year: We have engaged with suppliers this year on curbing annual increases and to ensure that their processes
are in line with our human rights and environmental standards, our code of ethics and our empowerment requirements.
How we engage
How often
As required
Harmony website (www.harmony.co.za)
Harmony Enterprise Development Centres
Written communication
As required
Contractual negotiations
As required
Face-to-face interaction
Requests for quotations and tenders
As required
Expectations: Mutually beneficial relationships founded on shared goals, constructive engagement and long-term commitments.
Benefit of engagement: Stable community relations, increased opportunity to make a meaningful difference through appropriate
corporate social investment projects, clarity in respect of expectations versus Harmony’s commitments to its host communities.
Discussions during the year: The most important issues raised by our communities and local government are questions relating to
our corporate social investment projects, social and labour plans, job creation, training and the like. In addition, issues/concerns raised
regarding our mining activities were discussed and addressed. Major environmental changes or operational changes that will have an
impact on the environment were also discussed with surrounding communities. We use all of this to inform our planning for the future.
For more on our community relations see page 87.
How we engage
How often
As required
Community radio and billboards
As required
Harmony website (www.harmony.co.za)
Contractual negotiations
As required
Face-to-face interaction
Understanding Harmony
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56  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Expectations: Mutually beneficial relationships founded on mutual respect, open conversation and constructive engagement.
Benefit of engagement: Allows outsiders to understand Harmony’s story.
Discussions during the year: Most questions related to results announcements, labour, wages, costs, grade and environmental issues.
How we engage
How often
Information and compliance releases via the Stock Exchange
News Service of the Johannesburg Stock Exchange and via the
Electronic Data-Gathering, Analysis and Retrieval system of the
United States Securities and Exchange Commission
On-going and as required
Harmony website (www.harmony.co.za)
Quarterly and as required
Conference calls
One-on-one meetings
Face-to-face interaction
Expectations: Mutually beneficial relationships founded on openness and integrity.
Benefit of engagement: Constructive engagement to understand issues raised by both the employer and the unions and a willingness
to resolve these issues.
Discussions during the year: Our engagement with various unions during the year encompassed the recognition of the Association of
Mining and Construction Union, de-recognition of the National Union of Mineworkers at Kusasalethu and the transfer of employees from
closed shafts to Harmony mines in build-up.
How we engage
How often
Wage negotiations
Every second year
Operational negotiations or consultations
As required, but at least monthly
Committees, dealing with issues such as health, safety and
employment equity
On-going, but at least monthly
Harmony website (www.harmony.co.za)
Expectations: Debt investors expect to be rewarded with interest and protected by the certainty that debt covenants will be met.
Benefit of engagement: Access to affordable funding, healthy relationships allowing on-going, honest conversation that provides stability.
Discussions during the year: The issues that dominate our discussions with banks/financial institutions tend to be cash flow generation,
management’s response to challenges, updates on operational results, possible corporate action, future strategy, management
structures, as well as our future business plans, including the Golpu project.
How we engage
How often
Financial reporting
Presentations, press releases and the Johannesburg Stock
Exchange’s Stock Exchange News Service
As required
Meetings and discussions
As required
Harmony website (www.harmony.co.za)
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Safety and health
Employees and communities
Environmental performance
Operational performance
Projects and exploration
Resources and reserves
Mining Charter compliance
Harmony Gold Mining Company Limited Integrated Annual Report 2015  57
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58  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Measured in terms of fatalities, best safety performance
recorded in 14 years
Participation in an industry working group to address
issues relating to compensation and medical care for
occupational lung disease in the gold mining industry in
South Africa
Moved away from the historic mine hospital-centric,
health service delivery model which is curative in
nature, to a more pro-active, preventative model
of health service delivery. We have seen significant
benefits, such as decreased absenteeism, hospitalisation
and medical mortality. Tuberculosis rates have also
decreased dramatically, while awareness of the human
immunodeficiency virus exceeds the national average. See
page 67 for more information
Collaboration with peers in the industry on various
government structures to ensure that there is a robust
effective mechanism in place to address silicosis-related
Behavioural aspects in breach of compliance with
Operational stoppages such as section 54/55 instructions
continue to hamper production
Unhealthy behaviour and lifestyles which predispose
employees to chronic diseases
Although tuberculosis rates have declined, it remains one
of our top five health risks
Relevant material issues:
Keeping our people safe and healthy
Protecting our licence to operate
At Harmony, the safety and health of our employees and contractors is not only a moral imperative but essential for creating a
sustainable, responsible business. Safety, one of our five values, is a key priority. Without a safe and healthy workforce, we cannot
be productive and profitable. We aim to eliminate and prevent all fatalities and work-related injuries and illnesses by promoting a
culture that gives priority to health and safety.
Loss of life
Production losses
Stakeholder relations
Both our occupational health and safety policy and our health and safety management framework are aligned with the Mine
Health and Safety Act in South Africa and mine health and safety legislation in Papua New Guinea. Representatives from all levels
of management, union and government are encouraged to participate actively in our health and safety framework. The relevant
strategy is guided by our health and safety policy.
Health and safety committees are in place at all our operations to ensure the active participation of all employees in safety
management. Safety and health are also agenda items at all union and management engagements. There are currently 34 full-time
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  59
health and safety stewards at our South African operations (FY14: 42). The decrease in number can be attributed to the closure of
Target 3 and the downscaling of the workforce at several operations following the revision of production plans aimed at restoring
these operations to profitability. Our operations have a sufficient number of full-time stewards to deal appropriately with health and
safety concerns. The technical committee, on behalf of the board, is responsible for approving and monitoring compliance with our
safety and health policy. The social and ethics committee oversees public safety on behalf of the board. Quarterly reports on health
and safety are provided to these board committees.
Safety performance, a key performance indicator for management, is monitored to determine remuneration in terms of the safety-
related bonuses to be paid.
We aspire to zero harm. To achieve this goal, continuous improvement in our safety performance is required. At Harmony, we have a
co-operative approach to safety to ensure that the necessary infrastructure and systems are in place; from planning to communication
and training. While management holds legal responsibility for safety, in reality it is up to management and employees to take joint
responsibility for their actions, to stop work when they believe that a workplace is unsafe and/or to prevent others from acting
in an unsafe manner. Continual reinforcement of safe behaviour in the workplace is overseen by line managers and supervisors.
Operations have introduced site-specific safe behaviour initiatives as well as behaviour re-enforcement programmes.
The safety strategy can be divided into three categories – short term, medium term and long term.
The short-term strategy comprises visible felt leadership, communication and report reviews:
Visible felt leadership
Leadership is expected to conduct at least two underground/workplace visits per week, including irregular (shifts outside normal
working hours) shifts. Visits to high-risk workplaces are prioritised, while training and coaching are guiding principles during the visits.
Safety is a standard agenda item at all meetings throughout the company. Improved safety awareness through pro-active
communication at weekly team leader workgroups meetings with the general manager at each mine; the on-going broadcast
of safety messages on mine televisions that are placed throughout our operations (surface and underground); and weekly
culture – assessed
and measured
Visible awareness
Award and recognition
Involvement of all stakeholders
Harmony branding
Safe behaviour programmes
Focused strategies to address fatal risks
Occupational health and safety management system (OHSAS18001)
Standards, procedures and communities of practice
Quality training (ISO 9001 and MQA accredited)
Auditing and control
Implementation of leading practices
Mine design and layout


To create a culture where health and
safety is the first priority
Harmony in action
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60  Harmony Gold Mining Company Limited Integrated Annual Report 2015
communication meetings between the general manager and safety representatives. Each general manager also attends monthly
safety mass meetings at their operation.
Report reviews
Weekly reports on the top five safety risks are made to the general manager of each operation. These reports are reviewed with
the relevant supervisors and actions are shared with the mining teams. General managers also review repetitive A-hazards reported
during the week. An A-hazard is anything that has the potential to cause harm. If an A-hazard is noticed, it requires immediate
remedial action – stop, fix or barricade. Exception reports from the various services departments on A-hazards are submitted daily
to all general managers for action.
The senior management team conducts monthly, formal safety reviews to assess all major safety risks at the South African operations.
Each operation provides information on the relevant controls introduced and action plans to address risks identified to ensure lessons
learned are implemented throughout the company.
Part of the short-term safety strategy was the implementation of phase two of the electronic safety management system (Pivot). This
system makes safety analyses and trends more readily available to the organisation, enabling more informed decision making and
quicker, more pro-active responses to exposures and risks.
The medium-term strategy involves the implementation of the fatal risk management system. Eight fatal risks have been identified
and for which fatal risk standards with measurable critical controls have been drawn up. These fatal risk standards cover areas of
fall of ground, underground tramming, electricity, working at heights, winches, mud-rush and inundation, fire prevention and
explosives. The standards have been finalised and signed off by the operational committee at the end of July 2015. The process to
roll these standards out across the company commenced in August 2015.
The long-term strategy focuses on industry leading practices, namely:
Separating the employee from the risk or hazard through more extensive barrier controls
Focusing on embedding a safety-conscious culture
Ensuring that people are committed to our values
Sharing of information and the adoption of best proven pro-active safety measures
Safety performance at our Papua New Guinea operations is monitored by Harmony’s south east Asia team. Safety managers at the
Papua New Guinea operations report to Harmony’s south east Asia executive committee through regular notifications and formal
monthly reports. This committee in turn reports to the technical committee and the board.
Relevant Global Reporting Initiative indicators: G4-LA5, G4-LA6 and G4-LA8
Regrettably there were eight fatalities during the year at our South African operations (FY14: 22) and one fatality at our Papua New
Guinea operations (FY14: 0).
In memoriam
29 Jul 2014
Mhanjelwa Cebani
Gravity related fall of ground
25 Aug 2014
Mmaneo Florisa Muso
Tramming crew supervisor Trucks, tramming and transport
6 Dec 2014
Hidden Valley
Maxwell Wari
Fitter and turner
Trucks, tramming and transport
13 Jan 2015
Mosoeu Ntsutheleng
Team leader
Gravity related fall of ground
18 Jan 2015
Michael Chobeng
Team leader
Trucks, tramming and transport
4 Apr 2015
Bernardo Ernesto Cuambe 
Engineering Assistant
Caught in headgear sheave wheel
30 May 2015
Mariselunes Thibello
Gravity related fall of ground
14 Jun 2015
Brand 1A Ventilation
Shaft) (closed shaft)
1. Sello Jacob Bobejaan
2. Thapelo Andries
Security officers
Overcome by carbon monoxide
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  61
Harmony prioritises safety and has a number of measures in place to ensure that safety remains a priority at all levels of the company:
Management spends a great deal of time in the workplace coaching employees on ways to work safely. These conversations are
shaped by messages agreed by management in consultation with the unions
External safety initiatives or leading practices are reviewed and implemented. ‘Champions’ have been nominated for each aspect
of leading practice for mining industry occupational safety and health leading practice. Each champion must attend all industry
meetings and ensure that all relevant information is disseminated to the operations
Comprehensive safety reporting allows us to track incidents, measure safety performance and report back to mines on performance.
An electronic safety management system (Pivot) is used for this purpose as mentioned under the short-term safety strategy
Safety roles and accountabilities are clearly defined in job descriptions and used to measure the performance of teams. This
ensures that every person at Harmony understands how they can work safely
Risk assessments are performed before any work is done and a change management procedure is being aggressively implemented
Mining and engineering committees have been established to ensure that company standards on various mining and engineering
work are being drawn up, approved and distributed to operations.
South Africa
Papua New Guinea
Group total
In line with our values and policies, Harmony provides the family of the deceased with counselling and financial assistance. A fund
was established in FY14 to support the educational needs of the school-going dependents of all Harmony employees and contractors
who lose their lives in the workplace.
The fatal injury frequency rate for our South African operations decreased by 61% to 0.11 per million hours worked (FY14: 0.28).
The fatal injury frequency rate for the Papua New Guinea operations for the year was 0.22 (FY14: 0.00) per million hours worked.
The lost-time injury frequency rate for the South African operations was 9.57 per million hours worked (FY14: 8.09), a deterioration
of 18%, mainly as a result of the Kusasalethu fire incident where 152 people were classified as lost time injuries, while that for
the Papua New Guinea operations was 3.79 (FY14: 0.00). In all, 24 514 shifts were lost due to occupational injury in South Africa
(FY14: 25 338) and 24 in Papua New Guinea (FY14: 0).
Fatal injury frequency rate (per million hours worked)
South Africa
Papua New Guinea
Group total
Lost-time injury frequency rate (per million hours worked)
South Africa
Papua New Guinea
Group total
Shaft management meets weekly to discuss and document operational and business risks. Remedial action plans are then drafted
to mitigate the risks identified.
Harmony in action
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62  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Pivot safety management system
The training, roll-out and implementation of the Pivot safety management system (Safety phase 2 – group 1) has been completed.
Harmony trained 1 050 users for this phase and the system is actively being used. A super-user workgroup, which consists of a
specialised user per operation, has been established to assist all operations with support.
The next phase of the project (group 2) commenced on 19 January 2015. Group 2 consists of the remainder of the occupational
health and safety management system modules that were not implemented in group 1. Below is a summary of the modules to be
Management and administration (module 1)
Procedures, code of practice, managerial instructions (module 3)
Occupational health and safety training (module 4)
Personal protective equipment (module 5)
Purchasing and contractor management (module 6)
Communication (module 7)
Emergency preparedness (module 8)
The project team is currently busy with the Group 2 requirement analysis. The project is expected to be completed by the end of
October 2015.
The Pivot safety management system is a tool which enables all operations to identify risks on a daily basis through various disciplines.
Once these deviations have been captured, the system identifies and highlights hotspot working places through a risk ranking system
which enables management to focus immediately on the correct areas. This entails that certain reports will be escalated to a higher
level, depending on the risk ranking. The actions manager module ensures that all deviations are assigned to a responsible person
for corrective action and follow up.
The system will also ensure effective data analysis and remedial action implementation. The currently implemented Pivot safety
management system provides functionality to capture the following at each Harmony operation:
Baseline risk assessments
Issue based risk assessments
Critical task assessments
Continuous risk assessments:
• Inspections
• Audits
• Task observations
•  Shift boss and engineering foreman logbooks (we are awaiting approval from the Department of Mineral Resources in the Free
State for the use of the electronic format logbooks)
Accident and incident reporting and investigation
Expectra, an external company, has been contracted to review, revise and re-implement the existing occupational health and safety
management system.
The number of Section 54/55 instructions increased to 229 (FY14: 204), mainly as a result of the continuous and increased focus
on the South African mining industry by the Department of Mineral Resources. Except for the operations where fatalities and major
incidents occurred, no operation was completely stopped as a result of these audits. All other instructions were issued to rectify
deviations from mine standards and affected specific sections of the relevant operation.
The total amount of production lost during FY15 which directly relate to section 54/55 instructions is 588 kilograms (18 904 ounces).
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  63
Year on year, the fall-of-ground injury frequency rate improved by 18% to 1.26 (FY14: 1.53). There were three gravity related fall-
of-ground fatalities in FY15.
Fall-of-ground injury frequency rate
Per million hours worked
South Africa
Several safety achievements were recorded during the year. The most significant achievements were as follows:
6 million rail-bound equipment fatality-free shifts
5 million rail-bound equipment fatality-free shifts
4 million rail-bound equipment fatality-free shifts
4 million fall-of-ground fatality-free shifts
Free State surface operations
3.25 million fatality-free shifts
3 million rail-bound equipment fatality-free shifts
South African operations
3 million fatality-free shifts
South Africa – metallurgy
2.5 million fatality-free shifts
Hidden Valley
2.5 million fatality-free shifts
Target 1
2 million fall-of-ground fatality-free shifts
Target 1
2 million fatality-free shifts
Harmony One Plant
1.5 million fatality-free shifts
1 million fall-of-ground fatality-free shifts
1 million fall-of-ground fatality-free shifts
1 million fatality-free shifts
1 million fatality-free shifts
1 million fatality-free shifts
1 million rail-bound equipment fatality-free shifts
1 million rail-bound equipment fatality-free shifts
During the year the joint venture steering committee approved the implementation of the International Council on Mining and
Metals guidelines to safety reporting. The International Council on Mining and Metals safety reporting standards are well aligned
with Harmony’s reporting standards in South Africa and reporting in accordance with the International Council on Mining and
Metals standard will commence in FY16.
The Papua New Guinea operations recorded one fatal accident and 17 lost-time injuries during FY15. The fatal accident occurred
when a wheel-loader operator reversed into the access road at the Hidden Valley process plant.
During FY15, the sling load (helicopter) procedures and standards were reviewed and amended after construction material fell out
of the sling net while in transit.
During the year there were several near-miss incidents that are of major concern. The mountainous terrain, high rainfall and quickly
changing weather conditions in Papua New Guinea which contribute to landslides and/or slope failures make aviation and vehicle
use much riskier activities.
Vehicle use in Papua New Guinea remains an extremely high-risk activity both on-site, which is within our control, and off-site,
on public roads, where contractors and employees come into contact with the public and their vehicles and where we have less
Harmony in action
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64  Harmony Gold Mining Company Limited Integrated Annual Report 2015
control. While we may have limited or no control over the natural environmental factors that contribute to the risk involved in
operating vehicles, we do have some measure of control over driver skills and competency, ie the ability of the driver to adapt
behaviour to changing conditions, and the enforcement of standards and procedures, which can exacerbate or lessen the risk in
operating a vehicle.
There were several near-miss vehicle incidents during the year and several resulted in minor injuries. Further work undertaken during
the year to mitigate the risk of vehicle-related incidents included:
revising the specifications of logistics trucks used on the Hidden Valley mine access road by limiting this to 6×6 trucks only
ensuring qualified driving trainers are supplied by the contractor
declaring mandatory stops for all trucks prior to the hazardous inclines on the Hidden Valley mine access road to check trailers,
radio communication, escort vehicles, etc.
Natural landslides are a relatively common occurrence in Papua New Guinea and together with potential man-made landslides (slope
failures associated with open-pit mining) pose a significant safety risk to our operations in Papua New Guinea. During the year a
real-time slope stability radar monitoring system was implemented at Hidden Valley and the eastern wall failure and other smaller
failures were well managed throughout the year.
The Chief Inspector of Mines’ office however did impose restrictions due to the risk of possible slope failures, to mining operations
in one area which affected mining flexibility. Specific geotechnical risk assessments are undertaken for all work sites in Papua New
Guinea and associated mitigation plans are updated at least once a year.
In South Africa, the board reviewed the social and ethic committee’s responsibility in terms of the Act with regard to the monitoring
of safety and in future, the committee will receive quarterly reports from management on public safety. Refer to the social and ethics
committee report on page 22.
Brand 1 methane explosion incident
A methane explosion occurred at the Brand 1A ventilation shaft in Welkom, which was being rehabilitated as part of Harmony’s
extensive rehabilitation programme underway in the Free State.
The accident occurred as a result of the ignition of methane within the explosive range in the shaft barrel when reinforced concrete
material was thrown down. Given the presence of flammable gas and methane in particular, Harmony is re-drafting its rehabilitation
procedure regarding the filling up of redundant shafts with inert material. Extensive testing for the presence of flammable gas prior
to backfilling will be undertaken at all shafts scheduled for rehabilitation.
A special operations centre was set up for the reporting of any damage sustained as a result of this incident; in all 1 122 reports
of damage to properties were received. All damage to houses and property reported is being repaired at an estimated cost of
R25 million.
A permanent plug was subsequently designed for the Brand 1A shaft to prevent any such explosions in future.
Our focus will remain on drastically reducing our fatal accident rate with the ultimate aim of having zero fatalities. We know that
safety must be approached holistically. We are aiming for a 38% year on year improvement in the total accident and injury frequency
rates at the South African operations. The implementation of the electronic safety management system (Pivot) will assist in the
analysis of accident trends as well as workplace risk rankings. Management will maximise the use of the information available to
ensure that the necessary attention and action are given to workplaces in need thereof.
Behavioural change remain a challenge and we will continue with our strategy to improve both leadership behaviour and our safety
messaging to give effect to a long-term shift in thinking and behaviour in terms of safety.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  65
Health strategy
Relevant Global Reporting Initiative indicators: G4-LA7 and G4-LA2
South Africa
Harmony’s proactive health strategy focuses on employee well-being, and improving work attendance and individual capabilities. This
strategy aims to prevent illness and/or identify disease early through medical surveillance, active case finding, early detection and treatment
as part of an integrated management healthcare system.
Harmony hosted the World Tuberculosis Day on 25 March 2015 at our Doornkop mine in collaboration with the Mine Health and Safety
Council. The Department of Mineral Resources and the provincial health department were also represented at the event. Harmony also
commemorated World Acquired Immune Deficiency Syndrome Day on 5 December 2014 at Phakisa with the support of the Free State
departments of Mineral Resources and of Health.
In the Free State region, Harmony participated in the World Tuberculosis Day celebrations by hosting the Member of the Executive
Council for Health at Joel as part of the dialogue with the employees and government representatives. On 6 May 2015, Harmony was
invited by South African Business Coalition on Health and Acquired Immune Deficiency Syndrome in the Free State to share best practice
in tuberculosis management. We also presented our human immunodeficiency virus in the workplace programme at the International
Acquired Immune Deficiency Syndrome Conference 2014 in Melbourne. Our proactive approach to healthcare over the past five years has
started delivering the expected benefits. The Harmony healthcare programme provides primary, secondary and tertiary healthcare as well
as occupational health services to all employees, through company-managed healthcare facilities and medical aid membership, as well as
by means of external healthcare providers.
Medical surveillance is on-going at dedicated centres where 42 570 medical examinations were conducted during the year (FY14: 49 214).
Harmony invested more than R100 million in rolling out and establishing seven health hubs, medical surveillance systems (Pivot), clinical
systems as an electronic health record system in line with company electronic data solution strategy, data warehousing, predictive analytics,
research and service transformation initiatives. Further focus on people-skills development, transformation and service delivery is expected
to have a positive impact on team effectiveness and alignment with the strategy.
Harmony has successfully moved away from the historic mine hospital-centric, health service delivery model which is curative in nature, to
a more pro-active, preventative health service delivery model. This decentralised service continues to bring primary care-based services as
close as possible to the operations, and is being delivered through seven health hubs and two primary health centres. As a result, Harmony
closed the Ernest Oppenheimer Hospital and associated pharmacy in Welkom on 22 December 2014 and no longer operates a hospital.
This is in line with National Health Insurance strategy and these health hubs provide integrated, proactive healthcare to employees and
contractors, in close proximity to the mine, improving the quality of healthcare available and decreasing the costs of centralised healthcare
The benefits of these health hubs include:
Alignment with proposed national health insurance processes and requirements
Compliance with the requirements of the Department of Mineral Resources
Facilitation of individual risk profiling, proactively managed by a significantly enlarged, multi-disciplinary team
Active disease case-finding
On-site case management
Continued surveillance and close monitoring of diseases
A holistic approach to providing healthcare
Providing a proactive employee assistance programme
Improved health insurance cover for most employees, including contractors
Improved quality assurance through health teams at operations
A decrease in the fixed costs of healthcare delivery through expensive and under-utilised old mine hospitals
A decrease in the number of shifts lost per medical visit or time spent at the central medical facilities
A reduction in the sick absenteeism rate and a 14% reduction in health-related absence since January 2014
Harmony in action
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66  Harmony Gold Mining Company Limited Integrated Annual Report 2015
A marked decrease in the hospitalisation rate
A more focused approach to medical disability
A decrease of 10% in the rate of medical mortality
An increase in human immunodeficiency virus counselling and testing offering from 49% to 70%
Increase – from 39% to 60% – in the number of employees knowing their status
The lag in the certification process of occupational lung diseases by the Medical Bureau of Occupational Diseases remains a major
challenge in the mining industry and for the Department of Health. However, the mining industry is collaborating with the department
to find a sustainable solution. The tuberculosis incidence rate in South Africa and Harmony remains alarmingly high compared with
the World Health Organisation benchmark, though the trend at Harmony is moving in the right direction. Motivating employees to
confirm their status, despite perceived stigma and confidentiality issues, remains one of the biggest challenges and is one that we
are tackling head on.
In FY15, we set a new target for health-related absence to include sick absenteeism. A new healthcare focus area was introduced
– an initiative to ensure 28% more people are fit for work at the operations. This initiative revisited the reasons for absence from
work and a new definition of sick absenteeism has now been established; it has been broadened and re-defined to include all health-
related absence from work. This revised definition now includes mine-accident sick leave, mine-accident hospitalisation, permanent
disability, occupational health assessments, and screening to determine heat tolerance. The initiative to profile individual health risks
will incorporate all of these risk factors as critical elements for future productivity initiatives.
A very successful “At-work” management programme was introduced at the health hubs in collaboration with other service
departments, such as human resources. For the past year more than 8 500 individual medical cases were reviewed by a team of
healthcare professionals. The aim of this programme is to early-identify potentially chronically ill employees, to review and monitor
their medical condition closely to ensure their early return to work as healthy, productive employees.
The health-related absence from work (14% reduction from January 2015 and 9.5% reduction year on year), indicates overall
success at operations, if the full health-related absence set of reasons is analysed and managed at individual operations.
In Papua New Guinea, the provision of full-time primary healthcare and occupational health surveillance to employees, dependants
and the local community is provided by medical centres at Hidden Valley, Wafi and Wau. The Wau centre is only available to
dependants and community members for emergencies, while four community health facilities provide services at Babuaf (near Wafi)
and Nauti, Kwembu and Winima (near Hidden Valley).
Upper respiratory tract infections remain one of Harmony’s main medical issues in Papua New Guinea with nearly 2 719
presentations to the medical centres. An integrated business information system provides administrative functions for health, safety,
risk management and human resources. Medical registers are used to track and review each patient’s progress from the first visit
through to the final treatment.
A total of 13 715 health examinations took place at the Morobe Mining Joint Ventures’ medical centres during FY15 (FY14: 15 726),
of which 3 467 (FY14: 3 584) were random drug and alcohol tests.
Healthcare delivery
In South Africa, membership of a medical scheme is compulsory for all Category 9(+) employees and is voluntary for Category 4 – 8
employees. Approximately 6 770 employees participated in medical schemes in FY15 (FY14: 6 400), with Harmony subsidising these
costs by an amount of R11 million per month (FY14: R10 million per month).
In all, 21 780 Category 4 – 8 employees have so far elected not to join a medical scheme. Instead they receive comprehensive health
services from mine medical facilities and associated preferred providers at no cost to this category of employee.
Harmony undertakes active case-finding and screening for employees as well as active disease management in respect of chronic
conditions who are not members of a medical scheme. Approximately 8 600 (FY14:10 202) employees are on chronic medication,
with one third of these employees being treated for two or more chronic conditions. Chronic conditions include hypertension,
human immunodeficiency virus or acquired immunodeficiency syndrome, diabetes, asthma and tuberculosis.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  67
Tuberculosis is recognised as one of the most pressing health concerns in South Africa and the gold mining industry. Harmony’s
tuberculosis control programme is in line with the relevant guidelines and prescriptions of the World Health Organisation. It is
also in line with the national tuberculosis strategic plan in South Africa, which is focused on an integrated approach to addressing
human immunodeficiency virus or acquired immunodeficiency syndrome, tuberculosis and sexually transmitted diseases, and with
the Mining Charter which covers silicosis as part of the human immunodeficiency virus or acquired immunodeficiency syndrome and
tuberculosis programme in its management approach.
Harmony’s tuberculosis programme focuses on early case findings, directly observed therapy short-course, chemotherapy, radiological
tuberculosis screening and hospitalisation until sputum conversion. In addition, various measures are implemented over and above
the national tuberculosis strategic plan, such as identifying early tuberculosis resistance through specialised generic and biochemical
tests and analysis, and investigative diagnostic tests for early detection.
A total of 1 140 (FY14: 1 022) ultraviolet lights for infection control have been installed in areas of high risk for tuberculosis infection,
including the newly-established health hubs. Ultraviolet lights sterilise the air and reduce the risks of inhaling micro-organisms,
including the tuberculosis germ called mycobacterium tuberculosis that is spread from person to person through the air. Employees
exposed to dusty work environments are screened annually by means of a chest X-ray in order to detect tuberculosis infection.
Continuous monitoring and education are conducted at the health hubs which oversee major campaigns as per the national health
calendar. The completion of an annual individual tuberculosis questionnaire has become standard practice in recent years.
Among employees, a total of 288 cases of tuberculosis were certified (FY14: 353) in South Africa. This figure includes contractors,
who have also been included in the full tuberculosis programme since 1 August 2013 so as to proactively contain and prevent any
further spread of tuberculosis, and to achieve a higher cure rate and lower tuberculosis incidence rate.
There has been a significant decrease in the number of new tuberculosis cases since the inception of the proactive healthcare
strategy in FY10. This downward trend is depicted below:
Cases of tuberculosis
South Africa
New cases
1 201
* Evander has been excluded from the FY11 – FY13 figures for comparison
Three (FY14: one) new tuberculosis cases were reported during the year in Papua New Guinea. During the year, Hard Hat Health
(on behalf of the joint ventures) had consultations with other companies operating in Papua New Guinea to ensure their learnings
with regards to tuberculosis management in Papua New Guinea can be incorporated into the tuberculosis management plan. (Refer
to page 74 for more detail).
Tuberculosis incidence
1 887
1 620
1 834
2 019
2 776
3 024
100 000
1 000
1 500
2 000
2 500
3 000
3 500
Harmony in action
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68  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Multidrug-resistant tuberculosis remains of increasing concern to the gold industry and South African population; treatments are
expensive and protracted as employees affected are unlikely to return to work. Multidrug-resistant tuberculosis can be identified by
sophisticated technology at multidrug-resistant tuberculosis hospitals. Given multidrug-resistant tuberculosis’s close association with
human immunodeficiency virus, Harmony has developed a human immunodeficiency virus and tuberculosis treatment which will be
integrated into the company’s healthcare management programme.
A total of 23 new cases of multidrug-resistant tuberculosis were diagnosed in FY15 (FY14: 25) and 21 employees are currently on
multidrug-resistant tuberculosis treatment (FY14: 29). Employees who are on multidrug-resistant tuberculosis treatment are removed
from all risk-work (dusty environment) as a preventative measure.
The human immunodeficiency virus or acquired immunodeficiency syndrome pandemic in South Africa continues to have a
significant impact on employees, their dependants, as well as local and labour-sending communities. This illness, caused by human
immunodeficiency virus or acquired immunodeficiency syndrome, can result in higher levels of co-infections of other diseases,
increased absenteeism and reduced performance levels, loss of skills, increased economic burden, and sometimes death.
At the South African operations, human immunodeficiency virus prevalence, as per our actuarial model, is estimated at 27% of the
labour force (FY14: 22%). Harmony manages human immunodeficiency virus or acquired immunodeficiency syndrome through its
clinics, human immunodeficiency virus or acquired immunodeficiency syndrome committees and healthcare specialists. Our human
immunodeficiency virus or acquired immunodeficiency syndrome strategy is based on promoting health through education and
awareness programmes, preventative strategies to reduce the number of new cases, evidence-based curative interventions to ensure
treatment, and on-going monitoring of compliance.
During the year, 4 016 employees were registered on the antiretroviral therapy programme (FY14: 4 640) at an average monthly
cost of R515 per person (FY14: R549). Harmony encourages all human immunodeficiency virus-positive employees to participate
in the wellness programme, which includes counselling, treatment of infections and antiretroviral therapy, to which all employees
have access.
In Papua New Guinea, the Hidden Valley joint venture, with the assistance of Hard Hat Health, acquired a digital x-ray machine
and set up a medical laboratory with equipment to enable the accurate testing of malaria, tuberculosis, human immunodeficiency
virus or acquired immunodeficiency syndrome, etc. Staff members were trained to operate the equipment and the clinic was also
registered with Papua New Guinea medical council to enable two nurses to commence voluntary counselling and testing for human
immunodeficiency virus or acquired immunodeficiency syndrome.
Carletonville – Silicosis First Stop Centre
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  69
Voluntary counselling and testing for human immunodeficiency virus or acquired immunodeficiency syndrome
Pre-counselling and voluntary counselling and testing are offered to all employees through on-going interventions at all Harmony
healthcare centres. A total of 19 234 (FY14: 33 531) employees received voluntary counselling and testing during the year and
of these, 14 933 (FY14: 14 060) employees confirmed their status. Although fewer employees were counselled this year, more
employees agreed to be tested – 79% in FY15 compared with 42% in FY14.
Number of employees tested per mine
Target 1
1 025
1 475
1 842
3 575
1 841
3 164
4 609
2 103
1 310
2 935
6 906
1 016
1 148
1 436
1 722
1 015
2 022
4 656
1 337
1 319
2 893
2 063
1 302
3 356
3 318
2 531
1 101
3 053
1 605
2 916
2 265
1 183
6 860
2 768
4 445
3 759
* Other – includes contractors, service departments and shafts that closed or were sold
Preventative healthcare
Health promotions and education: Harmony carries out monthly awareness campaigns on various health-related topics such as
reducing the human immunodeficiency virus infection rate to zero, voluntary counselling and testing, the human immune system,
means of infection with a focus on unsafe sex, taking care of your body through a healthy diet and lifestyle, the risk factors
associated with diabetes and the warning signs of chronic diseases.
Positive behaviour reward programme
In the second quarter of FY15, the health services team piloted an innovative positive behaviour programme to reward outstanding
health behaviour and sustain testing for human immunodeficiency virus or acquired immunodeficiency syndrome as a new culture
in Harmony. Employees were offered cell phone airtime to encourage testing for human immunodeficiency virus or acquired
immunodeficiency syndrome. As a result, 87% of employees who were counselled agreed to be tested, compared to 56% in FY14
in the same quarter. This initiative led to a second phase of this programme which commenced at the end of May 2015, resulting in
an additional 700 employees confirming their human immunodeficiency virus status for the first time in Harmony.
The positive behaviour programme has led to the identification of more than 400 new human immunodeficiency virus cases which
have been enrolled as part of our wellness programme.
Influenza vaccines: A total of 5 286 (FY14: 5 563) employees consented to receive influenza vaccinations during the year. The year
on year decline is attributable to the late arrival of 2015 vaccine in South Africa. This initiative is seen as a proactive measure to
prevent employees from falling ill during the winter season. Employees who received the influenza vaccines will be monitored in
terms of sick absenteeism to measure the effectiveness of this intervention.
Silicosis is caused by long-term exposure to high levels of quartz silica dust and can cause increased susceptibility to tuberculosis.
Silicosis in South Africa, and at Harmony, remains a material concern. The integrated Harmony human immunodeficiency virus or
acquired immunodeficiency syndrome, tuberculosis and silicosis policy and programme were developed to manage the debilitating
disease responsibly so as to minimise the risk and to proactively prevent further deterioration. The trend for silicosis indicates a
decline in incidence.
Harmony in action
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70  Harmony Gold Mining Company Limited Integrated Annual Report 2015
During FY15, 313 cases of silicosis were reported to the Medical Bureau of Occupational Diseases and, of these, 197 cases were
certified (FY14: reported 437, certified 175).
Harmony is a member of the Chamber of Mines and is participating in processes to address issues relating to historical silicosis cases.
The legal action against the gold mining companies is in an early stage and it is too soon to estimate the extent of any possible claims.
The silicosis working group (initiated by the South African gold mining companies who are members of the Chamber of Mines)
continues to search for a sustainable, inclusive and comprehensive solution for current and legacy dilemmas. Meetings with
stakeholders continued during the year.
Some of the activities included:
The immediate operational focus on input and support of the Medical Bureau of Occupational Diseases where a lack of resources
and management skills prevents the certification and compensation of current silicosis patients
Participation in the 2015 Science conference organised by the National Department of Health with the aim of finding sustainable
solutions to the current dysfunctional situation, and working towards an ultimate solution
On-going support for the Medical Bureau of Occupational Diseases, in association with the Chamber of Mines, with data analysis
and actuarial support. Assessment of the first 100 000 cases was concluded, and data for 700 000 pending files captured at the
Medical Bureau of Occupational Diseases
Provision of operational support to the Carletonville and Mthatha one-stop service centres of the Medical Bureau of Occupational
Diseases where ex-miners can do their biannual benefit examinations and submission of claims
Launch of a multi-stakeholder engagement initiative by the working group involving the departments of Health, Labour and
Mineral Resources together with representatives from neighbouring countries. Other stakeholders include the unions, other
mines, attorneys representing claimants in the class action, as well as ex-miners’ organisations
Project Ku-Riha (the Tsonga word for “compensation”) was launched on 29 May 2015 and is being rolled out by the Department
of Health, with the goal of making substantial inroads into addressing the backlog of compensation claims from mineworkers
who suffered occupational lung diseases while working in the mining sector, and ensuring that new valid claims are paid within a
reasonable timeframe. Harmony and seven other South African mining companies are participating in the initiative.
The companies see this project as being fundamental to their broader initiative announced on 18 November 2014 to address issues
relating to compensation and medical care for occupational lung disease in the South African gold mining industry. The companies
are engaging a range of stakeholders in a quest to design and implement a comprehensive solution that is both fair to past, present
and future gold mining employees, and that is also sustainable for the sector.
Project Ku-Riha marks a turnaround in the administration and operation of the compensation fund on which mine workers who have
contracted occupational diseases depend. All parties recognise that the compensation system has not been operating as effectively
as it should, with significant backlogs in claims processing having built up over the years.
For the companies, an efficiently operating compensation system is a critical part to the comprehensive solution being sought. This
project builds on work already done between the Department of Health and the Chamber of Mines that led to the establishment of
the first two one-stop service centres in Carletonville and Mthatha.
These centres offer medical examinations, rehabilitation assessments, health promotion and counselling to all patients, as well as
referrals to other medical specialists if necessary. Patients can now be diagnosed, treated and receive the help they need to stay
healthy, in one place. In addition, the centres help individuals prepare and submit compensation claims to the Medical Bureau for
Occupational Diseases.
The eight mining companies have jointly committed to a R5 million funding programme for Project Ku-Riha which has enabled the
Medical Bureau for Occupational Diseases and the Compensation Commissioner for Occupational Diseases to employ a project
manager and an additional 18 financial and government administration graduate professionals to carry out the necessary work.
Among other things, the work of Project Ku-Riha includes:
Data capturing and verification: confirming the contents of the files and capturing the most important information in each on an
electronic database. Accurate data is critical for the claim to be processed and compensated
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  71
Dealing with certification backlogs
Project management
Financial assistance to the Carletonville one-stop service centre
Dust control
In order to decrease our employees’ exposure to silica dust, Harmony uses a range of engineering controls to minimise dust. Mining
Industry Occupational Safety and Health (MOSH) leading practices such as the fogger system at strategic underground areas and the
implementation of foot- and side-wall treatment in identified intake airways to allay dust have been adopted.
In addition, multi-stage dust filtration systems have been installed. We are also in the process of installing winch covers for all of our
winches. Progress on winch cover installation is 86.7% with a total of 946 units out of the 1 091 units having been fitted. Action
plans with completion dates have been drawn up by each of the operations, indicating the number of winches on site, the number
fitted with covers, the number outstanding still to be fitted with covers and by when. It is envisaged that all winches will have covers
by the end of the second quarter of FY16. It is now standard practice that all new winches purchased must be fitted with dust covers.
The silica quartz content of dust is highly variable; this can pose a challenge when measuring the effectiveness of the engineering
controls. Harmony therefore concentrates on controlling the total respirable dust load in order to reduce the amount of exposure to
silica quartz. Training and awareness programmes address the concerns of dust control in stoping workplaces and all development
ends are equipped with water blasts to settle dust directly after a blast.
Dust discharge occurs during activities where the rock is broken at source i.e. stoping, development and trackless mining. Engineering
controls focused on dust allaying at source are be investigated through the Mining Industry Occupational Safety and Health dust
task team. A prototype waterblast which can be used in both stoping and development is currently being tested on a few mines.
The following measures were implemented at our operations during the year to combat silicosis:
Revision of the airborne pollutant baselines to identify hotspots and to assess the effectiveness of engineering controls is in
progress at all operations of which 91% (FY14: 67%) of total samples have been completed. All Harmony operations are utilising
the portable spot dose rate meter PDR 1500 measurement instruments to identify high dust load areas. Evaluation of suitable/
improved respirators has been completed, of which five different units meet the South African National Standards homologation
standard for men. Currently three units meet the standard for women
All Harmony operations are members of the Community of Practice for Adoption forum to monitor the progress of Mining
Industry Occupational Safety and Health initiatives
Industry milestone: elimination of silicosis
By December 2024, 95% of all exposure measurement results will be below the milestone level for respirable crystalline silica of
0.05 mg/m3
(these results are individual readings and not average results).
Using present diagnostic techniques, no new cases of silicosis will occur amongst previously unexposed individuals (“previously
unexposed individuals” are those unexposed to mining dust prior to December 2008 i.e. equivalent to a new person who entered
the industry in 2009)
Workshops have been conducted by the occupational hygienists from all the operations to establish a strategy to achieve this
milestone. The various options will be discussed early in the new financial year by senior management.
In Papua New Guinea, we experience around 3-4 metres of rain a year, which is a good dust suppression measure. Additional dust
suppression methods are used in the open pits and at the crushers and conveyors. Papua New Guinea also has a low respirable silica
risk. The combination of these factors means that dust is generally well-controlled at our Papua New Guinea operations.
Noise-induced hearing loss
Harmony embarked on an Oto-Acoustic-Emissions initiative as a measure for the detection of early hearing loss. The Council for
Scientific and Industrial Research has collaborated and analysed the data and confirmed that Oto-Acoustic-Emissions detect damage
two years earlier than an audiogram. We have received a proposal from the researchers at the University of Pretoria to continue
with further technical developments that could help prevent noise-induced hearing loss and also to develop leading indicators for
the industry.
Harmony in action
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72  Harmony Gold Mining Company Limited Integrated Annual Report 2015
All Harmony employees who are exposed to high noise levels are issued with personalised hearing protection devices, which reduce
noise levels by 25 decibels.
During the year, 98.9% of occupationally exposed employees, including contractor employees (59.6%), were issued with
personalised hearing protection devices (FY14: 93.8% and 62%), with a progressive total of 21 921 personalised devices issued in
FY15 (FY14: 27 238). Sound attenuators were also fitted to all equipment, resulting in no noise level exceeding 110 dB(A)-weighted
decibels from any machine, in compliance with our noise milestone.
The number of early noise-induced hearing loss cases (5 to 10% shift) decreased by 1 204 cases to 526 in FY15.
New industry milestones for the elimination of noise-induced hearing loss were introduced by the Mine Health and Safety Council
which took effect 1 January 2015.
New industry milestones:
By December 2016, no employee’s standard threshold shift (STS) will exceed 25dB from the baseline when averaged at
2 000Hz, 3 000Hz and 4 000Hz in one or both ears
By December 2024, the total operational or process noise emitted by any equipment must not exceed a milestone sound
pressure level of 107 dB(A).
Although Harmony has a ‘buy quiet’ policy in place, more engagement with original equipment manufacturers will be required to
work towards the milestone.
Audiometric testing during annual medical examinations tests for hearing loss. The early detection of hearing loss is part of Harmony’s
hearing conservation programme and this is done at least annually at occupational health hubs by an appointed audiometrist.
Harmony has placed increased emphasis on the monitoring of employee compliance regarding the use of personalised hearing
protection devices in the workplace. An awareness drive was initiated at all operations by supervisors, assistant occupational
hygienists and health and safety representatives to ensure employees are aware of the benefits of wearing personalised hearing
protection. A monitoring programme was also implemented to measure actual compliance in the workplace of the use of personalised
hearing protection.
Compliance monitoring is done during routine occupational hygiene inspections and an ad hoc audit was conducted by a high-level
audit team during the year.
Workshops with employees exposed to noise have been initiated to promote a better understanding of the reasons why people
are not wearing noise clippers underground. The benefits of using personalised hearing protection devices are described in the
e-learning training material used in employee training courses.
As part of the initiative to prevent noise-induced hearing loss, 22 418 employees participated in the ‘hearing coach promotion’
initiative during the year. Evaluations were done and guidance provided where necessary regarding the use of customised hearing
protection devices.
During the year under review, an audiometric screening/testing system was acquired in Papua New Guinea to ensure that hearing
loss can be measured against a baseline.
Heat stress
Extensive refrigeration and ventilation measures are in place at all operations where temperatures exceed normal working ranges.
Heat-tolerance testing and acclimatisation programmes support and protect employees exposed to excessive heat in the workplace.
In FY15, 6 736 heat-tolerance tests were undertaken (FY14: 11 163).
Heat-related illness cases decreased from 64 to 23 cases in FY15.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  73
Radiation protection
All our operations in South Africa comply with the dose limit of 50 millisievert in a year and 100 millisievert in five years. Operational
controls have been established to ensure that elevated monitoring results are investigated and corrected where required.
Radiological clearances are conducted at decommissioned sites to ensure the future declassification of these areas.
The National Nuclear Regulator approved the land clearance application submitted for the reduced footprint around Eland Shaft.
Managing chronic diseases
As part of Harmony’s integrated approach to healthcare, specific initiatives have been implemented to manage chronic diseases, with
our focus on the human immunodeficiency virus, tuberculosis, diabetes, hypertension and silicosis, as well as asthma and epilepsy.
In FY15, 42% of our Category 4 – 8 employees in South Africa received treatment for chronic conditions (FY14: 42%).
Harmony’s health initiatives focus on the most common diseases and the e-learning module covers these diseases in the induction
programme. Other initiatives that have been used are pamphlets, management healthcare memorandums that focus on mine-based
health and safety topics, health-worker training to recognise the most prevalent diseases, screening at all medical centres, disease
management interventions and quality assurance. In addition, branding on Harmony buses is used to help educate employees
on human immunodeficiency virus matters and promote voluntary counselling and testing, as are podcasts and liquid-crystal
display monitors.
Upper respiratory tract infections
In Papua New Guinea, Hidden Valley is located approximately three kilometres above sea level and most employees reside in the
lower, warmer areas; the regular change in altitude contributes to various respiratory ailments, mostly viral infections. Other factors
contributing to these infections include air-borne pollen during peak flowering times (thick rain forest and montane forest) which
affects air quality. The heavy rainfall all year round maintains high levels of humidity (around 80-90%) which creates favourable
conditions for fungus (spores), bacteria and viruses to proliferate.
In Papua New Guinea, a total of 2 719 employees were treated for respiratory ailments in FY15 (FY14: 2 921). There has been a
decline in the number of cases of upper respiratory tract infections presented since FY12, with a decrease of 7% recorded for FY15.
Harmony has successfully rolled out a programme to educate employees regarding respiratory ailments and gastro-intestinal hygiene.
Upper respiratory tract infections
Number of employees treated
2 719
2 921
5 083
5 428
4 605
Malaria is endemic to many parts of Papua New Guinea, which includes work sites such as Wafi-Golpu and Lae but excludes Hidden
Valley. Importantly, many employees and contractors working at Hidden Valley reside in areas where malaria is endemic, and this is
where our community health projects play a vital role in combatting the disease.
Over the past two years, there has been a 70% decrease in the presentation of patients with malaria-like symptoms at the clinics in
Papua New Guinea. This is primarily as a result of the following:
Continued support for provincial programmes to eradicate the disease by the use of residual spraying and fogging
Standardised testing that allows for more consistent testing for malaria. The turnaround time of blood tests has been increased,
meaning that patients are tested twice before receiving treatment, allowing the treatment provided to be appropriate
The distribution of treated mosquito nets and treatment regimes
On-going malaria awareness education that is provided to employees, contractors and communities
As part of the malaria awareness campaign, Morobe Mining Joint Ventures has been issuing treated mosquito nets as standard
personal protective equipment to all employees and contractors on site. In addition, work clothes issued at sites like Wafi-Golpu
are impregnated with insecticides, and insect repellents are issued to all employees and contractors
Harmony in action
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74  Harmony Gold Mining Company Limited Integrated Annual Report 2015
The Morobe Mining Joint Ventures’ malaria programme is now being managed and overseen by the general manager: health
and safety.
Hard Hat Health
During the year, in Papua New Guinea, Morobe Mining Joint Ventures’ contract with the International Organisation for Standardisation
expired and a new contract with Hard Hat Health became effective. Hard Hat Health, an Australian-owned company based in
Sydney, is owned and managed by three senior executives in the medical services industry. Hard Hat Health provides the following
services to Morobe Mining Joint Ventures:
Supply of qualified staff – paramedic at Hidden Valley (1 position)
Co-ordination of both international and domestic medical evacuations
Restructuring of the medical staff in the Morobe Explorations, Hidden Valley and Wafi-Golpu joint ventures which will include the
updating of job descriptions and the integration of standards and procedures, among others
Staff training
Reviewing and updating the clinical governance framework for the joint ventures
General corporate medical support
Once the emergency protocols and governance structures are updated and embedded within the organisation, the scope of work of
the contractor and the joint venture medical staff will change to focus on the pro-active health care management of our employees.
Hard Hat Health’s progress during FY15
Scope element
Supply of qualified staff
Coordination of medical evacuations
Commenced and on-going
Restructuring of the medical staff which will include updating of job
Integration of standards and procedures
Staff training
24/7 medical support (phone) from a doctor for all serious injuries,
repatriations and other issues as per agreed guidelines
Commenced and on-going
Standardisation of medical reporting
Commenced – changes to information
management system required
Overseeing regular internal audits
Review of emergency equipment on site and recommendation for
potential changes
Complete – additional equipment delivered to site
Review of site formulary, inventory, supply line and storage of medications
and consumables
Consultancy on local vector control programmes at sites including
specialist entomologist advice and oversight where required
Review current policies and procedures for pre-employment, pre-
deployment, regular and post-deployment physical assessments
Updated procedures approved
Review malaria programme and provide recommendations or if required
formalise an implementation plan
Review commenced
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  75
In collaboration with the Harmony Business Intelligence Team, the healthcare team successfully managed to deposit medical data
into the Harmony Data Warehouse. However some of the primary healthcare data remains a challenge. The Harmony Business
Intelligence team has developed an internal individual medical risk profile model to assist clinicians in making timeous medical
decisions. The model will form the basis for individual treatment plans, and for work management and health risk assessments to
aid future decision making regarding health and safety.
Harmony’s healthcare strategy is aimed at improving the well-being of every employee. Targets for FY16 include:
Continued improvements in health-related absenteeism rates, specifically a 28% decline in absenteeism
Continued improvements in the availability of Pivot data. In the long term, data from sources such as Pivot and clinical data will be
combined in an integrated approach that will assist doctors and healthcare workers in making holistic, informed decisions about
a person’s health
On-going regulatory and legislative compliance
Continued standardisation of medical surveillance processes with written procedures
Launch of a positive behaviour reward system to promote healthy lifestyles among employees
Harmony in action
Target 1 – Health Hub
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76  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Relevant Global Reporting Initiative indicators: G4-LA1, G4-LA9 and G4-LA12
We provide jobs in the areas in which we operate:
South Africa – total number of employees (including
contractors) of 31 012 (FY14: 34 686)
Papua New Guinea – Harmony employees (excluding
Morobe Mining Joint Ventures): 102 (FY14: 60)
Achieved our employment equity target in South Africa
(historically disadvantaged South Africans in management)
Board: 60% versus 40% target (FY14: 60%)
Executive: 44% versus 40% target (FY14: 50%)
Senior management: 40% vs 40% target (FY14: 49%)
Middle management: 46% versus 40% target
(FY14: 41%)
Junior management: 60% versus 40% target
(FY14: 46%)
Core skills: 87% versus 40% target (FY14: 75%)
Leadership training and investment in human resources
hours of employee training and development:
1 757 704 hours (FY14: 2 084 469 hours)
training and development group aggregate: human
resources development expenditure at 5% of payroll –
in line with the 5% target
Financial training for employees to date: 10 778 employees
have received training on personal indebtedness
In FY15, the number of hostel dwellers sharing
accommodation declined from 6 841 (FY14) to zero, with
all employees now housed in single rooms
Health hubs close to operations promote pro-active
healthcare for our employees
Compliance with Mining Charter
Ownership > 26%
Hostel conversions to single rooms > 100% of target
capital goods 76% vs 40% target
services 70% vs 70% target
consumer goods 66% vs 50%
Although our restructuring programme involved
retrenchments to reduce costs, we also need to ensure that
we retain the skills and experience required to operate our
mines efficiently
Employee turnover in FY15:
South Africa: 13.1% (FY14: 11.7%)
Papua New Guinea: 11.4%(FY14: 33.6%)
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  77
Employees are our most valuable asset at Harmony – without them we would not be able to operate. Our employees contribute to
the growth and development of our company and we, in turn, contribute to the growth and development of our people. Our aim
is to provide the means for our employees to achieve a good quality of life for themselves and their families, and to provide the
opportunity for each individual to develop to his or her full potential.
Relevant material issues:
Maintaining stability in our workforce
Establishing a committed, dedicated culture of delivery
Ensuring our workforce is healthy and safe
Protecting our licence to operate
Being relevant in the communities in which we operate
At the end of FY15, in South Africa, our employee complement was 31 012 (FY14: 34 686) - 84% permanent employees and 16%
contractors. In Papua New Guinea, the staff complement of 102 (FY14: 60) excludes employees of Morobe Mining Joint Ventures.
Of these, 74% were permanent employees and 26% were contractors working on specific construction projects (FY14: 98%
permanent; 2% contractors). Our recruitment initiatives focus on local communities, with more than 75% (FY14: 76%) of the South
African workforce being local, and in Papua New Guinea 96% (FY14: 88%) are local. The slight decrease in the local South African
component is due to the restructuring of operations.
Progress/ initiatives in FY15
Complete Merriespruit 3 housing project during FY15
Merriespruit 3 housing project was 81% completed by June 2015
Merriespruit 3 provides 448 family units
Maintain healthy relationships with organised labour
Future forums instituted at all operations
Productivity improvement initiatives
Right size operations – have the right people in the right
position at the right time
Continuing adult basic education and training programmes
and working towards the target of having a fully literate
workforce by 2024
572 employees attended these programmes (FY14: 880)
We are at 77% literacy levels compared to 72% in FY14
Informed, engaged and empowered workforce
Leadership training
Employee communication strategy
Given our aim to have motivated and competent employees, our human resources initiatives focus on four underlying goals, namely to:
Entrench a single organisational culture
Attract and retain employees with high potential
Develop employees to address skills shortages and improve efficiency
Maintain an effective employee performance management system
During FY15, we continued our cultural alignment programme, with 68 management employees completing the related Breakthrough
sessions. The programme is aimed at achieving cohesion throughout the company by shaping leadership, and by empowering and
engaging employees.
Leadership shaping encourages our senior leadership to set Harmony’s cultural direction and to devise ways of achieving it. This
includes a well-defined set of values, compiled following the 2011 culture survey, as well as the Harmony leadership brand that is
cascaded down from the more senior leaders to those below by means of coaching. This process is assisted by a suite of Breakthrough
programmes that enable leaders to drive our preferred company culture through the various layers of Harmony. This step of the
programme leads to the next – an empowered leadership team that continually shapes the Harmony culture.
Harmony in action
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78  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Early indications show that those leaders who have embraced and driven a single culture outperform their peers in terms of
production and safety. The lower incidence and decreased impact of industrial action also points to a more aligned culture where
people are more engaged and are able to contribute.
The Connect value, in particular, ensures that our employees feel part of the Harmony family. Internal communications is a continuous
interactive process. We use multiple platforms, such as regular meetings with the heads of departments, work groups and general
manager engagement platforms (mass meetings and quarterly productivity meetings). We also use traditional media such as print
(posters, newsletters (‘Nuggets’), memos, flyers), digital (mine television, intranet, website, text messages) and social media in the form
of Twitter. The chief executive officer also communicates with the workforce by means of e-mails (‘Notes from the CEO’s desk’) and
meetings with employees during internal roadshows.
For employees to be committed, productive and conscientious, we believe they should feel valued and therefore we ensure that our
employees know their roles, their company and what is happening in the industry:
they are the first to hear important news
they are consulted regularly
they are listened to and we provide them with the opportunity to be heard
their suggestions are acted upon
Relevant Global Reporting Initiative indicators: G4-LA2
In South Africa, employment policies and practices are governed by the Labour Relations Act 66 of 1995, the Basic Conditions of
Employment Act 75 of 1997, the Mine Health and Safety Amendment Act 74 of 2008, Skills Development Act 97 of 1998, the
Employment Equity Act, by company and operation-based recognition agreements and by other collective bargaining agreements.
The company provides a wide range of benefits to employees that includes sick, annual and maternity/paternity leave, production
and performance-based bonuses, housing and housing allowances, home ownership benefits, funeral fund, medical aid, disability
cover as well as provident and pension funds.
Employee relations in Papua New Guinea are regulated by the Employment Act of 1978 and the Employment of Non-Citizens Act
1978. Engagement of Papua New Guinea citizens is guided by a Memorandum of Agreement between the Landowner Association,
the company and the government, with preference for employment given to locals.
In Papua New Guinea, efforts to reduce reliance on contractors by the Morobe Mining Joint Ventures and Harmony operations
continued in FY15, resulting in further reductions in the contractor workforce by the end of the year under review.
A review of all human resource procedures and policies is on-going, including remuneration and incentive schemes.
Our remuneration policy is aligned with Harmony’s strategic direction, business-specific value drivers and operational results at all
levels across the company. (See page 191 for our full remuneration policy).
In FY12, Harmony launched the Tlhakanelo Employee Share Ownership Plan which resulted in all non-managerial employees
becoming eligible to be shareholders with a total potential stake of 2.9% in Harmony. Currently, employees through the share plan
collectively own 0.24% of Harmony’s issued shares. This gives employees the opportunity to share in Harmony’s gains and to benefit
from their hard work, in line with our values of achievement and connectedness.
In this financial year the Tlhakanelo share plan realised R43 million for employees.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  79
The rules of the scheme are communicated through offer, vesting and allocation letters. In addition, human resource leaders receive
frequent training to ensure that they are equipped to address employee queries. We also use mine-based audio-visual facilities to
communicate related information. For more details please refer to the remuneration report on page 190.
Union leadership empowerment programme
An empowerment programme aimed at sharing the business imperatives and performance, the company strategy and an
understanding of business principles was initiated during the year. In all, 61 union representatives attended the programme and
positive feedback was received from attendees. The intention is to ensure that our organised labour is fully engaged.
Restructuring of our South African operations and corporate office
During FY15, Target 3 and the Ernest Oppenheimer Hospital were closed and Kusasalethu, Doornkop and Masimong were
restructured. As a result, a total of 1 917 employees were transferred to other operations, 80 took early retirement, 492 accepted
voluntary retrenchment packages and 235 were retrenched. In FY15, we also reduced staff at our corporate office in Randfontein
– 16 took early retirement, 66 accepted voluntary retrenchment packages and 144 were retrenched.
South African gold wage negotiations
Relevant Global Reporting Initiative indicators: G4-EC5
Harmony negotiates changes to wages and other conditions of employment through recognised collective bargaining structures,
including a centralised industry forum under the Chamber of Mines. Negotiations began in June 2015. A three-year wage settlement
was reached with the unions representing the majority of employees at Harmony and was extended to all employees in the bargaining
unit. For more detail on the wage agreement, please refer to
Labour disputes and strikes
Relevant Global Reporting Initiative indicators: MM4, G4-LA16, G4-HR11
Labour disputes and strikes are considered one of our material issues because, in addition to the resulting loss of production, disputes
affect morale and reputation, and present a risk to non-striking employees, to communities and to company assets. (See page 50
for full details of our material issues).
To mitigate the risk of labour disputes in South Africa, we constantly engage with organised labour at mine and company level.
Human resources adopts a proactive approach in addressing employees’ queries.
Harmony has embarked on various initiatives to address the scourge of employee over-indebtedness. These include, among other
things, financial literacy training, discontinuation of non-statutory payroll deductions and notifying employees about emolument
attachment orders against their pay. In all, 10 778 employees (FY14: 5 593) have attended the financial literacy programme since its
launch in September 2013.
Below are some of the key themes gathered from feedback from those who have attended the programme:
The devastating effect that debt has had on their families’ lives
A desire to be in control of their own spending, and have a life without debt
Recognition that they do not have power over their spending
Strong awareness of the need to budget
Other initiatives still being rolled out include the verification of emolument attachment orders by the National Debt Mediation
Association and the launch of a helpline for financially troubled employees.
In Papua New Guinea, we participate in on-going engagement with all stakeholders, including employees, provincial and local
government, landowners and regulators.
Harmony in action
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80  Harmony Gold Mining Company Limited Integrated Annual Report 2015
During FY15, Harmony was not affected by strike action. In South Africa, the two-year wage agreement is up for renewal and
planning for the negotiations commenced in May 2015.
In Papua New Guinea, no strike action took place during the year.
Maintaining peace and stability in our workforce
We endeavour to maintain peace and stability in our workforce at all times. We want our employees to feel and to be safe in
all aspects at work. For more on this issue see page 59.
Our multi-union environment promotes co-existence, inclusion and collaboration. Our value of accountability extends to our
unions, with all labour relations structures and processes being bound by national legislation, agreement and best practice. In
addition to quarterly regional meetings with our unions, we also encourage proactive and robust engagement to address issues,
on which we follow up promptly. Because communication is on-going at all levels, we have contact daily with full-time stewards,
while our general managers/human resources leaders have regular interactions at branch level and with shaft committees.
Harmony also engages with the unions on a wide range of employee-related issues, such as housing and employment equity.
Given the valuable role our employees play in our business, it is important that we share the news of the business with the
unions. We do this through the monthly communication of operational performance to union structures.
We also work directly with our employees to address a number of issues that are key to our relationship with them. These
include reviewing production incentives, introducing financial literacy to address the problem of indebtedness and replacing
payroll deductions with a new system to manage emolument attachment orders and garnishee orders.
We will continue this work in FY16 and hope to continue improving both our relations with employees and their daily experiences
at Harmony.
Freedom of association
Relevant Global Reporting Initiative indicators: G4-HR4
We recognise the right of employees and contractors to freedom of association and adhere to collective bargaining agreements in
each country. Honesty is one of our values and we strive for honest, two-way discussions through collective bargaining.
In South Africa, Harmony recognises four labour unions. As at financial year-end, these unions and their corresponding representation
were as follows, namely the National Union of Mineworkers (at 66%); the Association of Mineworkers and Construction Union
(at 15%); the United Association of South Africa (at 10%) and Solidarity (at 2%). About 93% of our South African workforce is
unionised, with the balance not belonging to a union.
* Sum of agency shop agreements and non-unionised
There are no active unions at our Papua New Guinea sites. Industrial relations at Hidden Valley are currently managed by the mine’s
employee representative committee.
Union representation at Harmony’s South African operations (%)
National Union of Mineworkers
Association of Mineworkers and Construction Union
United Association of South Africa
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  81
Relevant Global Reporting Initiative indicators: G4-LA9
We are in competition for key human resources and critical skills. Upskilling in core and critical areas increases the skills pool and
lends stability to continued operations.
Employee development is pivotal to Harmony’s strategic and operational delivery. All training and development programmes are
carried out in line with the company’s strategic and operational needs through a wide range of programmes. These include skills
development, adult education and training, the bridging school, learnerships, bursaries, graduate development, talent management
and supervisory and leadership development. Some 4.9% (FY14: 4%) of the payroll is spent on human resource development.
In addition to upskilling our own employees, we recognise that community members could benefit from our programmes. We devote
considerable effort to programmes such as bursaries and the bridging school – that allow young learners from local communities
to improve and continue their studies. This has the potential to benefit Harmony in the long run, too, as it encourages promising
students to take up careers in fields in the mining industry.
In FY15, 96% of our workforce received training compared with 62% in FY14. This increase was mainly due to the effect of the
restructuring where employees were transferred to other operations and/or positions. Training costs during the year amounted to
R371 million (US$32 million) including support for South African-based research and development initiatives intended to develop
solutions in exploration, mining, processing, technology efficiency, beneficiation as well as environmental conservation (FY14: R283
million (US$27 million)). In FY15, 69 people were trained in critical skills at a cost of R1.0 million (US$0.1 million), compared with
56 people in FY14 at a cost of R1.1 million (US$0.1 million).
To facilitate transformation in South Africa, a total of 1 159 employees received training on diversity management issues which
served as groundwork for the proper implementation of employment equity. Of those who received such training, 68% (FY14: 67%)
were historically disadvantaged South Africans of whom 14% (FY14: 12%) were women.
The Mining Charter in South Africa placed significant emphasis on training and development. At the end of our reporting period,
Harmony’s operations met the requirement that 5% of the payroll costs be spent on employee training and development.
Adult education and training
Relevant Global Reporting Initiative indicators: G4-LA10
Adult education and training centres at Harmony’s South African operations run full-time classes to ensure that employees are
functionally literate and numerate so as to allow for personal growth and transformation within South Africa.
In FY15, 476 employees (FY14:1 099) and community members were enrolled for classes, at a cost of R32 million (US$3 million)
(FY14: R52 million (US$5 million)).
The overall pass rate for FY15 was 53%, a 12% improvement on the previous year (FY14: 41%). The roll-out of e-learning at the
adult education and training centres, which is scheduled to begin around September 2015, will increase the number of participants
in the programme since employees will have the opportunity to study at their own pace.
Harmony in action
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82  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Bursary programme
Harmony offers a bursary programme and a subsequent graduate-development programme. Harmony awarded a total of 33
(FY14: 38) bursaries for university studies during FY15, with 29 (88%) (FY14: 24; 63%) of these students coming from our
local communities.
4th Year
3rd Year
2nd Year
1st Year
Total by gender
Other – Services
Bridging school
Harmony’s bridging school supports mathematics and science at grade 12 level to assist school leavers in improving their final results
to gain admission to tertiary studies. Upon successful completion of their grade 12, some are awarded bursaries while others follow
the learnership route, increasing the company’s learnership intake.
Since inception of the school in 1996, we have registered a total of 370 students. Of the total number enrolled over the years,
36 (10%) were awarded bursaries, 179 (48%) went through learnerships and the balance were appointed to various permanent
positions, some of whom are now in management positions.
Five formal learnership programmes are in place at Harmony: mining operations L2, rock breaking L3, artisan L3/4, service person
L2 and winding engine driver L3. In FY15, Harmony had 247 (FY14: 283) active learners at different levels in their respective
learnership programmes, of whom 55 (FY14:81) completed their learnerships. Most have been appointed to critical positions within
the company.
Internship and experiential programmes
In support of our social and labour plans, Harmony hosted 71 students (48 internships and 23 experiential trainees) during FY15
(FY14: 31 students – 20 interns and 11 trainees). Of the total number engaged, 25 (FY14: 10) students completed their exposure
programmes during the period under review. Harmony currently has a total of 46 active students – 31 internship students and 15
experiential trainees (FY14: 21 students – 17 interns and four trainees).
Our social plan programme
Through its social plan programme, facilitated by the framework agreement entered into between Harmony and the National Union
of Mineworkers in 2003, which was and still is the majority union, the company continues to provide alternative skills training to
employees (both current and retrenched employees). This enables people to be economically active beyond mining. It also cushions
the impact of unavoidable retrenchments for economic reasons or when our mines reach the ends of their lives. The alternative skills
acquired give employees access to employment opportunities in other sectors of the economy outside mining, and promote a culture
of self-employment to improve quality of life.
The social plan framework agreement provides for employees who elect not to undergo training themselves to nominate a dependant
(proxy) to receive training in their stead.
Future forums
Future forums are in place at Harmony’s operations and comprise representatives from mine management and organised labour.
Future forums were set up to deal with issues such as productivity improvements and long-term mine sustainability, job security and
creation, and ameliorating the impact of downscaling and retrenchments on employees (and their families), communities and the
local economies where these cannot be avoided.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  83
Members of future forums are inducted or capacitated on a continuous basis based on: the National Social Plan Policy, Harmony’s
Social Plan Framework Agreement, compliance with Social and Labour Plan Regulations, and their functions.
The forums are consensus driven and operate in a completely transparent environment. Parties to the forums work together to
achieve its objectives. The culture and approach of the forums is one of joint problem solving, with management and organised
labour negotiating to prolong the life of the mine so as to achieve the best possible benefits for all stakeholders. All necessary
information is made available to the forums to ensure they make fully informed decisions.
Portable skills development
During the period under review, 421 employees were trained, of which around 83% were proxies (dependants of mine employees).
Since the execution of Harmony’s mining licences, some 4 451 employees have been trained in portable skills.
The range of basic skills provided cuts across economic sectors, ranging from information technology (computer literacy), electrical,
welding and basic motor mechanics to catering, baking and clothing manufacturing.
Portable skills training conducted in FY15
Number of employees
(or proxies) trained
Target 3
In FY15 there were 4 653 workforce training events at Morobe Mining Joint Ventures in Papua New Guinea. Specific initiatives in
FY15 included:
Personal development courses
Level 2 supervisor development programme for mining supervisors
Integration of level 1 programme for drill and blast supervisors and coordinators
Information and technology training for trainer supervisors
Tier 1 and 2 induction and training
Operator efficiency training
Employee educational support
Morobe Mining Joint Ventures provided over R44 million (US$3.9 million) in Educational Support for 347 employees’ dependants in
Papua New Guinea.
Morobe Mining Joint Ventures’ landowner school tuition assistance
The Morobe Mining Joint Ventures tuition assistance programme for Hidden Valley and Wafi-Golpu landowners was completed in
quarter 3 of FY15, with 95 successful applications and R473 877 (US$41 000) paid to 14 institutions.
Harmony in action
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84  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Compared to 2014, there was a significant 62% increase in successful applications in 2015, including 42 for distance-mode education,
13 for colleges and four for universities. Current trends indicate that more Hidden Valley students attend tertiary institutions while
Wafi-Golpu has more students opting to upgrade to matriculation (University Entry Level) through distance education at the University
of Papua New Guinea’s Morobe University Centre. See figure below.
Morobe Mining Joint Ventures landowner tuition assistance FY15
Male and Female
Secondary school
High School
Hidden Valley
Women’s development programme
Landowner women’s groups from the Hidden Valley area submitted proposals to the Mineral Resource Authority Women in Mining
Small Grant Programme and three were considered successful by the programme steering committee. The project agreements were
finalised with the Mineral Resource Authority and more than R1.08 million (US$0.1 million) were released to the groups for their
respective proposals including guesthouses and passenger motor vehicles.
A training needs analysis of 165 women between the ages of 15 and 60 years was conducted by the Chamber of Mines and
Petroleum Women in Mining Programme. The data was then analysed and results used to assist with the development of programme
plans for impacted and affected areas.
In December 2014, the new Wau Women’s Resource Centre was successfully completed and formally handed over to the community.
Education programmes
The Department of Education and the Morobe Mining Joint Ventures’ education team inducted 12 trainee teachers from six
elementary schools in the Wafi-Golpu region. This resulted in two schools starting early childhood classes in Pekumbe and Venembeli,
while Hekeng and Towangola continued classes.
Teachers at all operating schools in Bulolo received their back-pay after many years of teaching without pay, and are now on the
government payroll.
Morobe Mining Joint Ventures funded excellence awards for students in 14 elementary schools. District education advisors and the
Honorable Member for Huon Gulf, Ross Seymour, acknowledged Morobe Mining Joint Ventures for the awards. Since 2012, Morobe
Mining Joint Ventures has provided excellence awards to a total of 83 students.
The Nauti Elementary School is now fully operational with four teachers and has enrolled 167 students in all four classes. The Nauti
community contributed a house, kitchen and toilet for the newly appointed community school teacher.
During the fourth quarter, the Morobe Mining Joint Ventures’ education team assisted with a two-week in-service course for
11 elementary teachers from five elementary schools in the Wafi-Golpu region. It was jointly facilitated with Bulolo District Elementary
trainers and standards officer.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  85
Relevant Global Reporting Initiative indicators: G4-EC6, G4-HR3
A representative workforce is both a legislative and moral imperative in South Africa, one which ensures economic growth benefits
for all stakeholders. As a result, employment equity is an important consideration, taking into account the historical context of the
areas in which we work to ensure equality wherever possible.
We ensure that our migrant employees are able to return home regularly. We also aim to make it easier for employees to have their
families visit them by making available spouse quarters for visiting family members. We have several local economic development
projects in labour-sending areas, such as Mozambique and Lesotho, as well as an agreement to provide home-based care to medically
incapacitated employees from all areas.
The company reports its employment equity plan and progress to the social and ethics committee quarterly and to the Departments
of labour and mineral resources annually.
In FY15, 58% (FY14: 46%) of Harmony’s management staff were historically disadvantaged South Africans, exceeding Mining
Charter targets for company-level compliance. The increase in compliance indicators is due to alignment of Harmony’s reporting
with the Department of Labour’s classification guidelines – (EEA9). For previous years, indicators were based on Patterson grade
D-F only whereas C band employees are now classified as Junior Management and have been included in the 2015 employment
equity percentage.
Women employed at management level stood at 16% (FY14: 20%) The decrease is due to retrenchments during the year which
included women. There is no difference between salary scales for men and women at Harmony.
Employment equity plan
Occupational categories
2014 Plan (%)
June 2015 (%)
Top management – Executives
Senior management
Middle management
Junior management
Core and critical
In Papua New Guinea, we are focused on attracting and retaining both externally and locally recruited employees, particularly
landowners and local citizens. Operations are governed by a three-year training plan lodged with the Department of Labour. Under
this plan, the joint ventures must ensure locally sourced employees are continuously trained and succession is managed. 95% of all
Morobe Mining Joint Ventures’ employees are Papua New Guinean citizens.
At Hidden Valley, women in the workforce stood at 10% in FY15 (FY14: 13%), below the national average of 14% (FY14: 15%).
This fall is due to the reduction of the Morobe Mining Joint Ventures’ workforce during FY15.
Improved living conditions for our employees are directly linked to enhanced employee well-being and productivity. In addition, our
housing programme creates jobs and supports local business. Harmony only appoints local empowered companies (see our procurement
spend on page 98 of this report, in line with the Mining Charter) when embarking on construction and building projects. Our key
challenge in FY15 was that we were unable to comply fully with the Mining Charter target for housing and living conditions.
Our housing strategy is focused on promoting home ownership and rental options and on integrating mining communities into local
municipal structures. We make land available and facilitate affordable housing development on our redundant mine land – for all
new developments we fund construction of infrastructure such as power and water, manage the project and monitor quality. We
also proclaim mine villages for inclusion within municipal areas. In line with our focus on home ownership, employees who do not
live in company hostels receive living-out or housing allowances.
Harmony in action
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86  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our hostel de-densification programme ensures that employees have access to private living space. To enable employees to
move their families closer to our operations, our hostel conversion programme makes available family units; we also seek to
provide family accommodation in local towns. At Harmony, we are aware that corporate social responsibility extends beyond the
surrounding communities.
2015 *
%    Achieved
%   Planned
Hostel (operational) conversion to single
rooms by 31 December 2014
8 658
8 695
1 678**
1 102**
Hostel (non-operational) conversion to
family units
1 100
Facilitation of home ownership***
4 719
2 961***
2 800
2 496
To date, we have been unable to procure funding from the government and/or the Department of Human Settlements for the Deelkraal hostel
The data reported for 2013 and 2014 represents units in 100% converted hostels. The number of single rooms, including those in
uncompleted hostels, totalled 5 027 in FY14 (FY13: 3 214)
Houses sold to employees and other housing development programmes (actual achieved will depend on employee affordability profiles and
the ability to obtain finance). Certain elements are beyond Harmony’s control, such as whether employees are granted bonds or receive state
subsidies. Therefore bank lending, affordability and indebtedness remain stumbling blocks to increased home ownership
In FY15, the number of hostel dwellers sharing accommodation declined from 6 841 (FY14) to zero, with all employees now housed
in single rooms. We aim to build 1 100 family units over three years. Some 927 units have been built to date – 84% of the total
planned (FY14: 761 units, 69% of that planned). Merriespruit 3 is in progress while Deelkraal is at feasibility stage.
To further facilitate home ownership, Harmony subscribes to and supports the pension-backed home loan scheme as negotiated for
the industry by the Chamber of Mines. In all, 1 441 (FY14: 1 100) of our employees have already made use of this facility. During
FY15, 110 of our houses were purchased by way of a ‘rent-to-own scheme’ (FY14: 12).
Relevant Global Reporting Initiative indicators: G4-LA14, G4-HR3, G4-HR10 and G4-HR12
Respect for human rights is entrenched within the company’s values and specifically catered for in human resource policies, charters
and contracts of engagement. This is closely monitored by our human resources function and community engagement managers
at operational level.
Merriespruit housing complex
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  87
We abide by the human rights conventions of the International Labour Organisation, as supported by the South African constitution.
Our adherence is monitored by the social and ethics committee. In addition, certain human rights requirements are built into
contracts with new suppliers.
No incidents of discrimination were reported in South Africa or Papua New Guinea in FY15.
The South African constitution also prohibits forced, compulsory or child labour. None of Harmony’s operations are at risk of human
rights contraventions and no contraventions of these principles were alleged or reported in FY15.
Relevant Global Reporting Initiative indicators: G4-SO1
Key statistics: local economic development spend
Group local economic development spend
R63.5 million (US$6 million)
R77.1 million (US$7.4 million)
– South Africa
R62.5 million (US$5.5 million)*
R71.7 million** (US$6.9 million)
– Papua New Guinea
R1.0 million (US$0.1 million)
R5.4 million (US$0.5 million)
In addition, capital of R89 million (US$8 million) was spent in FY15 on hostel upgrades
**   In addition, capital of R106 million (US$10 million) was spent in FY14 on hostel upgrades
We are committed to the sustainable socio-economic development and well-being of the communities where we operate.
We recognise that it is from these communities that we draw our employees and that healthy, flourishing communities can provide
us with the calibre of employees we need to run our business. Their well-being and development underpins our own sustainability.
Apart from being a statutory requirement, our strategic objective is to contribute to the sustainable development of our communities
long after mining has ceased.
In South Africa, Harmony’s operations are governed by the allocation of mining rights, with each mining right area bound by an
approved social and labour plan. In Papua New Guinea, regulatory control vests in a memorandum of agreement between Morobe
Mining Joint Ventures and local communities and key landowners with similar social commitments to those in South Africa.
Harmony has reached the end of the first five-year Mining Charter target period. Please refer to page 168 for the status of Harmony’s
achievements in terms of the Mining Charter targets. All of Harmony’s mining rights scored in the ‘Excellent Performance’ category for
2012, 2013 and 2014 calendar years. In addition, we operated in line with our social and labour plan commitments at all South African
Our company, employees and communities are affected by socio-economic, political and regulatory changes. Changes include
amendments to labour, mining and environmental legislation and political and regulatory changes. Our compliance efforts impact
directly on our social licence to operate and thus on our sustainability. We endeavour not just to comply with laws and regulations
but to “go the extra mile”. We conduct regular meetings with stakeholders such as government and community leaders to address
concerns, grievances and misperceptions.
Relevant Global Reporting Initiative indicators: G4-EC4
For the five-year cycle ending December 2017, Harmony’s planned social and labour plans constitute R844 million of which, as at
30 June 2015, we had spent R405 million on local economic development projects.
To make a relevant and thus sustainable contribution to local communities, we have aligned our social and labour plans with municipal
integrated development plans. Social and labour plans are currently in place for each mining right for the period 2013 to 2017.
A Harmony-led forum meets regularly, bringing together stakeholders to discuss and agree on key projects for the Free State
goldfields region, with the aim of identifying and developing industries lacking in the local economy and the enterprises necessary
to service those industries.
Expenditure on local economic development projects in South Africa decreased from R71.7 million (US$6.9 million) in FY14 to
R62.5 million (US$5.5 million) in FY15. This decrease was due to delays in various projects, which we are addressing and trying to
resolve quickly.
Harmony in action
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88  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Legacy projects
(projects aimed at leaving something for the community after all mining operations in the area have been closed)
The legacy projects are applicable to all Free State operations in the Lejweleputswa Municipal District
Merriespruit 3 hostel conversion project
The contract for the conversion of the Merriespruit 3 hostel to community rental units was signed on 28 March 2013. A 100%
black-owned construction company was awarded the tender and started with the project in June 2013. The project was 81%
complete as at 30 June 2015.
972 jobs were created during construction and 30 permanent jobs. All these jobs were filled by members of the local community.
We will continue this work in FY16 and hope to continue improving both our relations with employees and their daily experiences
at Harmony.
Film studio
A film studio project was launched in 2012 to establish an international film and television studio facility on a site (approximately
700 square metres) in Welkom, in the Free State province. The film studio company signed a land availability agreement with
Harmony on 24 April 2012, giving the studio access to land for the development of a television and film studio facility.
The film studio company has also secured the commitment of the Free State Provincial Government which has in turn appointed
three departments, namely, Sports, Arts and Culture, Tourism, and Economic and Environmental Affairs, to work alongside the
team to ensure the success of the project.
During the year, a feasibility study and a business plan were completed. The land agreement was signed and the process to
provide a radiation clearance certification is in progress.
Virginia Sports Academy
The purpose of this project is to identify sporting talent among previously disadvantaged youth. Those identified are each
offered an annual bursary to the value of R94 000. The students stay in our hostel and attend local schools. Signed contracts
are in place between parents/legal guardians and the Virginia Sports Academy.
The bursary covers the following:
Accommodation, including three meals daily
School fees
School clothes
Sports clothing
Transport to and from school and sports tournaments
Medical expenses
Beneficiaries of this project are talented youths from both local communities and those in our labour-sending areas. The cost
of this project, which employs 16 people on a permanent basis, is R8 million annually. In all, 72 boys (36 soccer players and 36
rugby players) benefit annually.
This project also has a dedicated functional website (www.vsportsacademy.co.za).
Some of the well-known students from the academy include Cecil Afrika (SA Rugby), Branco du Preez (SA Rugby), Seabelo
Senatla (SA Rugby), Eugune Cunha (Blue Bulls Rugby), Tumelo Nhlapo (Bafana Bafana), Lerato Manzini (Bloemfontein Celtics),
Nelson Molale (Kaiser Chiefs) and Keamo Wolff (Jomo Cosmos).
Nyakosoba High School
This project for Nyakosoba High School, located in Lesotho, was started during 2010 and was completed during FY15. It has
provided 10 classrooms, ablution facilities both for learners and for educators, an administration block with offices for the
school principal, the deputy principal and administration staff and a staff room as well as a kitchen.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  89
Virginia Jewellery School
This project was identified for the Matjhabeng Municipality, Lejweleputswa district. In all, this jewellery school has created 150
jobs since its inception. Of these, 10 are permanent. Currently, 18 Mining Qualifications Authority students and eight students
attend the school. All local communities benefit from this project, as jobs are created and jewellery skills training and assessment
of learnerships is done in the area. The Virginia Jewellery School has produced five qualified goldsmiths.
The total cost of the jewellery school since inception in the year 2000 is R18 million. A dedicated website (vjsjewellers.co.za) for
the jewellery school was completed and went live at the end of December 2014.
The school, which now employs four qualified goldsmiths, opened an outlet shop in the Goldfields Mall, in Welkom, in April
2015. A trade-off agreement has been signed with a well-known retail group, in line with Harmony’s strategy to enable this
project to become self-sustaining.
Bridging school
Local students are selected to improve their matric grades in mathematics and science. This initiative ultimately assists such
students to improve their chances of securing bursaries to study further, of acceptance at tertiary institutions and of entering
into various learnerships as part of Harmony’s talent pool.
In all, 20 local youth, who are classified as being historically disadvantaged, are given the opportunity to attend Harmony’s
bridging school for one year after finishing their Grade 12 school year. The pass rate for the students improved from 57% to
63% for mathematics, and from 54% to 61% in science during the 2014 academic school year. All students began learnerships
with Harmony in January 2015 (12 in mining and eight in engineering).
Harmony Business Development Centre
The Harmony Business Development Centre also known as the Enterprise Development Centre is the main vehicle through
which we drive our Enterprise Supplier Development initiatives. Since opening its doors in Welkom in 2009, the business
development centre has created a platform for more than 500 companies that have sought to do business with Harmony.
The majority of these companies are in the maintenance and construction sector as opportunities in this area were set aside
exclusively for historically disadvantaged South African companies.
Relevant companies submit their profiles to the Harmony Business Development Centre and, if their services or product offerings
match procurement opportunities that arise, they are invited to quote and submit tenders. The Harmony Business Development
Centre provides technical guidance and support to the companies that succeed in accessing business at Harmony. The centre
oversaw contracts with the companies selected to the value of R163 million from inception in 2008 to December 2014.
Other activities that Enterprise Supplier Development and the centre focused on included the following:
Registering companies as vendors to Harmony
Facilitating shorter payment periods
Coaching and mentoring
Training and skills development
Provision and facilitation of financing
Ensuring compliance with applicable legislation
The business development centre provided seven employees with permanent jobs and R1.6 million was spent on the centre in
the 2014 calendar year.
Training programmes
A number of training workshops have been conducted in the past, including training conducted by Enactus. They trained
suppliers on the Harmony Business Development Centre database and a company called ‘Running Business Today’. The training
conducted is comprehensive and based on business simulations for youth and women in the community of Nyakallong near
Allanridge. Business training for 24 beneficiaries to the value of R81 851 was conducted in FY15.
Harmony in action
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90  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Reasebetsa Women Co-operative
Reasebetsa Women Co-operative is 100%-owned by women, to which Harmony has given the opportunity to reclaim bricks
and steel from the African Rainbow Mineral 1 mine site, near the Harmony Business Development Centre. The project is a
test study to determine if this approach to reclaim and rehabilitate land will benefit the targeted groups, namely women and
youth. The project generates income for about 15 people who did not previously earn an income. Harmony bought tools and
relevant equipment to be used to reclaim and clean the bricks and is also to assist with market development. A service provider
named ‘MCBE’ was enlisted to guide and advise on this project. Reasebetsa took over the site in August 2014 and by the end
of December 2014, about 100 pallets of bricks had been collected. These bricks were sold to members of the public.
Project beneficiaries include the youth from Thabong community, who were part of the pressure group that marched to demand
jobs from Harmony. This initiative is viewed by stakeholders as being progressive and worth implementing at other Harmony
sites targeted for demolition. Harmony spent R128 738 on training in FY15 and Reasebetsa generated revenue of approximately
R70 000 and the lives of the participants have improved substantially.
Tsebo Multi Skills Co-operative
Tsebo is a youth-owned co-operative from Nyakallong near Allanridge. The Harmony Business Development Centre facilitated
Tsebo’s becoming a vendor in the field of construction and maintenance. Tsebo was awarded its first construction job at the
Phakisa mine in December 2014 to renovate the training centre. An established contractor, The Power of Junction, was asked
to guide and mentor Tsebo through the project.
Small, medium and micro enterprise development – expansion of the feed mill
Harmony facilitated the granting of funding to the amount of R9 million from the National Empowerment Fund for the
establishment of a feed mill. The feed mill is situated at Dihoai farm, which is in the Matjhabeng municipality between Welkom
and Odendaalsrus towns. Chicken feed is the most expensive input material in the poultry business and the ability to access feed
at a cheaper rate would enable small chicken farmers to be more competitive and increase their chances of making a profit. By
end of FY15, the feed mill construction was 100% completed and the civil works around the plant was completed.
Construction of the feed mill led to the creation of 19 permanent jobs and the beneficiaries of the mill were co-operatives and
local small, medium and micro enterprise development.
Small, medium and micro enterprise development – upgrading of abattoir
The need for an abattoir to cater for the small poultry producers was identified, where small poultry producers can slaughter
their fully grown chickens at an affordable price. Harmony undertook the renovation of an existing abattoir that had not been
built to the correct standards and specifications so that it now meets the requirements of the Department of Agriculture.
Harmony engaged contractors to do the renovations, and to install electricity, air conditioners, refrigerators and cooler rooms.
In all, this project created 20 permanent jobs during 2014 and, as with the expansion to the feed mill, the beneficiaries were
the co-operatives and local small-, medium-, micro-enterprise development. The total cost of the project is R5 million, of which
R683 392 was spent during calendar year 2014. The project is expected to be completed by December 2015.
Training was provided by Harmony and a partnership was formed with the Department of Agriculture.
Small, medium and micro enterprise development – manufacturing of Motoho
The project, identified for the municipal district of Lejweleputswa in the Matjhabeng local municipality, involves Golden Goose
Catering Services, a black woman-owned enterprise that produces Motoho, a soft porridge drink, which is very popular in the
local communities. This enterprise employs 40 people and the beneficiaries of this project will be local communities, the owners
of Golden Goose and the consumers of the product.
The cost of the project will amount to R1.2 million. Timing for completion is dependent on marketing and trade off agreements,
estimated to be completed December 2015.
Thabong Industrial Project
The Matjhabeng Municipal Council requested Harmony’s assistance with the formalising of the informal light industrial park
in Thabong, in the Lejweleputswa district municipality of the Matjhabeng local municipality. The aim of this project is the
development of the Thabong Industrial area alongside Constantia Road West. The intention is to establish land zoned for light
industrial use by emerging entrepreneurs alongside the busiest road leading into Thabong.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  91
Harmony in action
Harmony approached the Enactus students from Central University of Technology in June 2014 who agreed to assist with the
ground work. The council provided the students with a letter of approval and they started work on a survey of the current
status of the entrepreneurs who operate from this site, and what specific requirements would be needed to formalise the site.
The students embarked on a site-cleaning campaign followed by a marketing drive and a day of training on health and safety,
marketing and business skills.
A professional team compiled a report on how best to turn the site into a state-of-the-art light industrial area. The completed
report has been submitted to the council. This project will generate employment for 400 people. Currently 162 people are
employed. The feasibility study was completed in January 2015 and the business plan requesting funding has been revised and
submitted to the Department of Trade and Industry. The total estimated value of the project is R70 million, of which Harmony
has so far contributed R1 million for the feasibility study and paid R269 000 for the business plan.
Currently, there are 24 different businesses on site. The businesses represent 12 different types of manufacturing and two
different tailors. This project has tremendous potential to prove that municipalities can be developmental in nature. It must be
seen as a “best practice exercise” where, through careful research and a variety of inputs from various stakeholders, township
businesses and manufacturing can become fully competitive and commercial.
Wellness Centre Kutloanong
The clinic is in the municipal district of Lejweleputswa, in the Matjhabeng local municipality. The clinic is housed in the
multipurpose centre in Kutloanong, the municipality building, that was renovated at the cost of R521 000. Renovations were
done by a local black empowered company and three temporary jobs were created. Beneficiaries of this project are the local
communities of Kutloanong.
Among other things, the centre is also used for the following:
Hosts HIV/AIDS support groups in the area, as well as young adults over the age of 25
Provides career information and other social interventions to young people
Public meetings and literacy classes for the elderly
Small, medium and micro enterprises and skills development centre
The second phase of the small, medium and micro enterprises and skills development centre was completed in August 2014
and the project handed over to the local municipality. This second phase included paving of walkways and the parking area
and landscaping.
The goal of the project was the establishment of a skills development and small, medium and micro enterprises centre to
facilitate skills diversification within the Ratlou local municipality.
Beneficiaries of the project, which has created 30 temporary jobs, are the communities within the Ratlou local municipality. The
third phase of the project – development of the digital hub (computer centre) is in the planning phase.
Tshwaraganang sewing
Tshwaraganang Sewing is a co-operative belonging to 10 women from Kraaipan. Harmony helped find accommodation to
house the co-operative and purchased 10 sewing machines for the women’s use. The women received training on how to use
the machines and were awarded certificates. The local communities of the Ratlou Local Municipality, Ngaka, Modiri and the
Molema District Municipality will benefit from this co-operative.
Harmony contributed R800 000 towards this project which has been completed in December 2014.
Upgrading of the water supply in Kraaipan Village
This project, which addresses the local service-delivery backlog, was agreed with the Ratlou municipality which had requested
assistance together with the Department of human settlement department within the Ngaka Modiri Molema district.
The first phase of this project was to provide water and reverse-osmosis purification plants for the Kraaipan area. Harmony
contributed funding of R3.5 million to the Ratlou municipality for this project. The reverse-osmosis machine and holding tank
were installed onsite and the holding dam and commissioning of the plant were completed by the end of May 2015.
This first phase created 18 jobs during the year, with the beneficiaries all being from Kraaipan Village.
Ludeke Junior Primary School
The Ludeke Primary School is located at the Ludeke Mission in the OR Tambo district municipality in the Eastern Cape, about
15 kilometres away from the OR Tambo monument. It was established in 1914 as a mission school. The school has a rich
heritage, having produced world-class alumni, most notably the late world-renowned freedom fighter, Oliver Reginald Tambo.
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92  Harmony Gold Mining Company Limited Integrated Annual Report 2015
The school is overcrowded with, on average, more than 60 learners per classroom. All buildings have deteriorated over the last
27 years. The now-dilapidated buildings were constructed using prefabricated material. Harmony will be one of two funders
supporting this project. The renovations will consist of building classrooms, ablution facilities, a library, a computer centre and
the administration block. The school, which employs 20 teachers, enrolls pupils from Grade R up to Grade 9. Total enrolment is
684 pupils, the immediate beneficiaries.
It is estimated that this project will benefit around 27 000 children over the next 40 years. It will also empower the local
community to take ownership of their school, ensure long-term sustainability and give their children the education that every
South African child deserves.
Harmony, which will contribute R1 million annually to this project, has signed a three-year memorandum of understanding in
July 2013 with the South African National Civic Organisation’s Development Initiative (the principal of the Ludeke Junior Primary
School Renovations project).
This first phase of the project began on 28 March 2014 and was completed on 1 October 2014. Phase one generated employment
for 13 people within the community. Phase two, scheduled for completion in December 2015, aims at building classrooms.
Waste Recycling Project, Khutsong
This is a collaborative project between three mining companies – including Harmony –– and the Merafong municipality. Each
mining company will contribute R1 million over three years (2012- 2014). The project site is in Fochville within the Merafong
City local municipality. The aims of the project are community empowerment, job creation, recycling of waste within the
Merafong community and addressing environmental issues. The project is going well and the following key components have
been accomplished:
Paper from Harmony’s Randfontein Office Park is collected for recycling by the project
The permanent structure is complete and construction of two additional toilets is in progress
Application for an electrical connection has been made and the fees paid to the municipality. Installation will be done by the
municipality, but in the meantime equipment is being run on temporary supply
A bailing machine has been purchased and is in use
A community event was held in July 2014 in Kokosi Extension 5 to promote recycling and environmental issues. This event
prompted a dramatic increase in incoming recyclables and enabled the project to establish relationships with many collectors
in the area
Eight local people are permanently employed and an administration assistant will be employed shortly
An agreement has been reached with a big recycling company which already has waste paper for recycling
Merafong Digital Hub
This hub is doing well and has begun several computer training programmes for out-of-school youth and for the members
of the community. Harmony continued to support the youth of Merafong with computer-literacy training. There was another
intake in August 2014 of 50 young people for the Computer Literacy Course. The Computer Training National Qualifications
Framework Level 3 is a three-month course. The course, which covers basic information technology skills, is accredited by
Media, Information and Communication Technologies Sector Education and Training Authority E-Learner and endorsed by
International Computer Driving South Africa.
This project is a collaboration between Harmony and one of our peers. Each company contributed R500 000 to establish a
community digital hub which is housed at the Khutsong Business Centre.
The aims of the project are to:
give young people an opportunity to develop digital media skills and training
foster innovation, technological development and creativity in a supportive entrepreneurial environment
offer members of the local community the opportunity to gain information technology skills
provide the community with services such as the typing of curricula vitae, printing, copying, binding, faxing and so on, at
affordable rates and without added travelling costs
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  93
Deelkraal Community Rental Units
This proposed project entails the development of the vacant Deelkraal hostel complex into a community rental project with all the
amenities necessary to sustain a vibrant community. The planned project will consist of 556 one- to three-bedroom flats and will
include a primary school and other social amenities. The aim is to provide affordable rental units to the local mining communities.
The estimated project value is in the region of R180 million and will be a joint effort by Harmony and the Merafong municipality.
The project will ultimately be handed over to the municipality as the owner and manager. Harmony has completed the
development of eight show flats to the value of R2.8 million. A funding application and feasibility report have been submitted
to the Gauteng Department of Human Settlements and we await its favourable response.
Small, medium and micro enterprises development
The Merafong local municipality has requested Harmony’s assistance with the branding of the small, medium and micro
enterprises stalls that have been built. The municipality has embarked on the formalisation of small businesses. This branding
will enhance visibility of the stalls and attract customers, as well as save on marketing costs.
Communities will also recognise that Harmony is integral to their lives. In the next financial year (FY16), the project will continue
with the renovations of hawkers’ stalls in Wedela, Kokosi and Carletonville.
Woolgrowers Support Programme
The objective of this project is to build capacity for woolgrowers in the Eastern Cape. The project caters for 183 individuals with
1 900 sheep. Villages involved are Thonti, Mazeni, Magamzeni, Mabovu, Bipha, Mfundisweni, Ndakeni and Dudumeni.
Services include training in sheep shearing, sorting and the packaging of wool. They also help farmers to understand the supply
chain and how it affects them, helps organise the sheep farmers into a legal entity and enhance the farmers’ capacity to increase
their negotiating power. Harmony worked in partnership with Department of Agriculture on this project, which was completed
in the 2014 calendar year.
Slovoville and Dobsonville digital hubs
This project commenced towards the end of May 2014. The model for the digital hub was taken from the one which was
successfully implemented in Merafong.
The Soweto hubs employ 20 people, and beneficiaries of this R2.5 million project include the local communities and youth
The digital hubs in Slovoville and Dobsonville were completed and have been operating since October 2014. The hubs provide
communities with much-needed services closer to home and more-reasonably priced. Services offered include typing, printing,
copying, binding, faxing, Internet access (which enables people to look for employment) and facilitates business development
and training. The two co-operatives (five members each) running both hubs have received on-the-job training in 2015.
Small, medium and micro enterprises development – cleaning detergent factory
This R1.9 million project is in the municipal district of the City of Johannesburg.
The factory manufactures cleaning detergents and operates from Roodepoort. Project implementation included finding suitable
land, construction of the factory, power, water and sewer connections, equipment sourcing, labour sourcing, training, sales and
marketing, branding, accounting and web design.
The factory initially started with eight people and increased this number to 25 as it grew and expanded its market. The factory is
busy creating more than 80 self-employment opportunities by locating merchants (people willing to buy and sell our products).
Both the employees and the distributors are beneficiaries of this project. Implementation was completed and the factory was
fully functional and operational in October 2014.
Harmony in action
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94  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Relevant Global Reporting Initiative indicators: G4-SO2
Our corporate social responsibility policy recognises the need for socio-economic investment in South Africa and Papua New Guinea,
starting with the broader communities in which we operate. This policy includes local economic development initiatives executed
in terms of the Mining Charter, the Mineral and Petroleum Resources Development Act and the codes of good practice for the
minerals and mining industry. In Papua New Guinea, we comply with local, regional and national legislation, licence conditions and
memorandums of agreement with associated communities and key landowners.
Our corporate social responsibility activities are monitored by the social and ethics committee at board level. In South Africa, projects
and programmes are considered, approved and monitored by a corporate social responsibility committee at management level. In
Papua New Guinea, this responsibility lies with the head of our south east Asian operations. In South Africa, we identify suitable
programmes through stakeholder engagement and in partnership with the Chamber of Mines’ community development forum, non-
governmental organisations, communities, government departments, municipalities, educational institutions and the governments of
Lesotho, Mozambique and Swaziland.
South Africa
In FY15, Harmony spent R6.3 million (US$0.6 million) (FY14: R8 million (US$0.8 million)) on corporate social responsibility projects
in South Africa. Key projects focused on educational support, social development, community support and sports and recreational
Harmony’s corporate social responsibility priorities in FY15 concentrated on implementing programmes in mathematics, science
and technology advancement, community project-based entrepreneurial skills development, sports and recreation development.
Our programmes address key social issues such as building and supporting education systems and processes, including sports
infrastructure and social and enterprise development initiatives.
Community project-based entrepreneurial development programme
This programme is aimed at developing entrepreneurial skills within communities so as to promote job creation and at eradicating
poverty. In 2006, Harmony established a collaborative partnership with Enactus (an implementing organisation) for youth and
student leadership development so as to increase leadership capacity within South Africa, uplift the poor and fast-track enterprise
and socio-economic development initiatives.
Enactus is an international non-profit organisation that brings together students, academics and business leaders who are committed
to using the power of entrepreneurial action to improve the quality of life and standard of living for people in need. In southern
Africa, Enactus has established student programmes on university campuses and at other institutions of higher learning (i.e. about
28 institutions in South Africa and eight in Swaziland).
Guided by academic advisors and business experts, participating students form teams on their campuses and apply business concepts
to develop and implement community outreach projects that improve the quality of life and standard of living for people in need.
The experience not only transforms lives, it helps students develop the kind of talent and perspective essential to leadership in an
ever-more complicated and challenging world.
To date, Harmony has invested approximately R17 million in the development of the communities in which it operates and its labour-
sending communities (including those in Swaziland).
More than 113 000 lives have been positively affected by the programme and the transfer of business and socio-economic skills since
Harmony started supporting it.
Among the projects pursued by the Enactus teams to improve the quality of life and standard of living for people, were the bio-gas
project, the arts and crafts project and the essential oils project.
Bio-gas outreach project – creating affordable bio-friendly alternative energy
The bio-gas outreach project generates gas to supply sufficient power to operate a bakery. This project has successfully involved
training 19 previously unemployed youths to generate bio-gas and to use this gas to operate a bakery. The bakery produces 3
000 loaves a month at a cost of R5.00 and a selling price of R7.80 each. It is a project initiated by University of Fort Hare’s Enactus
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  95
team aimed at providing an alternative source of energy, through a bio-digester, in the Melani and Fort Cox communities near the
town of Alice in the Eastern Cape. Most residents have no alternative but to use firewood, wood pellets or kerosene to supply
the energy resources they desperately need – this project therefore provides the community with a sustainable solution. These
communities cannot afford basic energy costs as they live below the poverty line of R24.00 per person per day.
The by-product of the bio-digester’s slurry is utilised as an organic fertilizer in gardens, therefore reducing reliance on artificial
fertilizers and increasing yield. An additional benefit is that the by-product of the bio-mass digester used to generate the bio-gas
can be used as organic fertilizer in gardens. This reduces reliance on artificial fertilizers and increases yields.
Project facts
•  Electricity is produced using an alternative energy source
•  Biomass plant electricity generated and supplied to bakery
•  Skilled and employed 19 community members to run the bakery
•  Bakery produces 3 000 loaves each month
•  Each loaf is produced at a cost of R5.00 and is sold for R7.80
  The bakery has a monthly turnover of R24 000
  51 people are impacted directly (19 youths and 32 are other beneficiaries/members of the project)
•  The provision of gas stoves has changed lives
•  Beneficiaries receive a stipend to help feed their families
•  Reduced reliance on government social grants
Growth prospects
This project is currently being extended with the roll-out of bio-gas digesters to other villages, and the establishment of a centre
of excellence in bio-gas generation, as an alternative source of energy at the University of Fort Hare where future beneficiaries
are trained.
The team overseeing this project plans to increase the number of beneficiaries in future and to continue expanding the bakery to
allow more people to be employed and to produce a wider range of baked products.
Arts and crafts project
The Enactus team of the Mangosuthu University of Technology established a centre as a platform for crafters in the Umlazi area
in the province of KwaZulu-Natal, to showcase and market their products, and so promote their ability to generate income and
create job opportunities. The centre also serves as a potential market place where residents and tourists can buy the arts and crafts
products. The crafters, some of whom are physically challenged, are organised as a co-operative.
Harmony in action
Kutlwanong Taxi Rank
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96  Harmony Gold Mining Company Limited Integrated Annual Report 2015
• Beneficiaries are trained in sewing, beading and pottery skills
• A co-operative for the physically challenged is empowered to design and produce furniture (i.e. chairs and tables)
Impact to date
• 22 beneficiaries benefit directly
• An additional eight jobs have been created, bringing the total number of jobs created to 15
Through the efforts of the Mangosuthu University of Technology’s Enactus team, funding amounting to R71 000 was secured
from the national lottery to assist in buying production machines
• The crafters collectively generated a total income of R273 000 (US$ 24 000) in FY15
Project growth and sustainability
The project’s growth strategy involves expanding to other areas around Umlazi and Durban to market and sell their products. This
will include securing stalls (business space) at arts festivals and renting shops in shopping malls.
The artists and crafters have embarked on a skills development programme for learners from various high schools in art-making skills.
Essential oils project
This is a co-operative project initiated by the University of Zululand’s Enactus team, to produce essential oils in South Africa by
growing aromatic crops (e.g. rose geranium). The essential oils are to be used as ingredients in the manufacture of pharmaceuticals
syrup in food and drink flavouring.
This eight-member project is located at Matshana village in rural Nqutu, 30 kilometres from the University of Zululand. The project
employed eight more people to assist with the planting, harvesting and distilling of the essential oils. Planning for the project,
which is in the development stage of its life cycle, started in 2013.
The Small Enterprise Development Agency from uThungulu assisted with the development of a comprehensive business plan
for the project
The University of Zululand’s Enactus team secured funding amounting to R350 000 from the Department of Trade and Industry
to help expand the project
• Eight jobs secured to date
Impact to date
• Eight job opportunities created
The facilitated partnership with the South African Essential Oil Business Incubator helped to secure 100 hectares of land and
seedlings to expand the project
Future plans
• The team is planning to target export markets in the United States and Europe
• About 20 to 27 additional job opportunities will be created as the result of the project expansion
The work done by the Enactus teams and the projects developed and implemented address the twin challenges of poverty
alleviation and job creation. Ultimately our objectives are to upscale and duplicate these projects in other areas of the province.
Advancing science and mathematics
The incessantly poor uptake of mathematics and science subjects at secondary and tertiary levels is shrinking the pool of qualified
scientists, engineers, innovators and researchers, and subsequently threatening the future of scientific development in South Africa.
The South African Agency for Science and Technology Advancement, the business unit of the National Research Foundation tasked with
advancing public awareness, appreciation of and engagement with science, technology, engineering, mathematics and innovation
in South Africa, is making strides in communicating the value and impact of science and technology in a dynamic knowledge-based
economy, and simultaneously building the science, engineering and technology human resource base in South Africa.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  97
The South African Agency for Science and Technology Advancement and Harmony established a partnership in 2005 to identify
and nurture talent in the critical areas of science and technology and to contribute toward addressing the shortage of skills in
mathematics, science, engineering, technology and innovation, both in South Africa and the other countries making up the Southern
African Development Community. Harmony became the main sponsor of the National Science Olympiad, an initiative of the South
African Agency for Science and Technology Advancement.
Over the years, the National Science Olympiad has achieved several milestones, in particular:
A major three-year sponsorship was secured from Harmony in 2009 which was later renewed for four consecutive years to 2015
Through the Federation for Engineering, Science and Technology Olympiad and Competitions, the Department of Science and
Technology provides the South African Agency for Science and Technology Advancement with funding to increase the participation
of Dinaledi Schools by funding their entry fees. These 500 schools are earmarked by the Department of Basic Education, from
across the provinces, in pursuit of improving the quality of teaching and learning in Mathematics and Science
The increased participation is due in part to the following:
The sponsorship secured from Harmony
Mathematics, Science and Technology coordinators
South African Agency for Science and Technology Advancement aggressive marketing strategy within the rural areas
Collaboration with the Department of Basic Education at provincial level through the Mathematics, Science and Technology
With Harmony’s continued support, more than 127 800 learners from across South Africa and certain South African Development
Community countries like Lesotho, Zimbabwe, Malawi, Mozambique and Namibia were reached over the past six years through the
National Science Olympiad.
International collaboration and learner exposure
In January 2015, South Africa’s four top best-performing Grade 12 learners and two top achievers in Grade 11, who participated in
the 50th National Science Olympiad in 2014, were given an opportunity to attend either the International Youth Science Forum in
Australia or in the United Kingdom for two weeks.
Papua New Guinea
In line with our goal of generating sustainable benefits for our communities, the focus in Papua New Guinea during FY15 remained
on health, education, agriculture and infrastructure.
Hidden Valley’s infrastructure programme focuses on constructing, repairing and upgrading roads, bridges, educational facilities,
health facilities and water supply in the three landowner villages of Nauti, Kuembu and Winima and impacted communities along
the Watut River corridor.
In the area of agriculture, the primary industry team focused on the Lower Watut cocoa programme and the preparation of strategic
plans for agriculture and aquaculture programmes under the community participation agreement for the Wafi-Golpu communities.
Farming tools and equipment were delivered and demonstrated to 36 cocoa cluster groups.
Community health and education projects undertaken and completed in FY15 include:
The completion of a community feedback workshop on health matters during which community health surveys were reviewed.
Results will be used to enhance community awareness and training aspects of the community and employee health programme
and to enhance treatment and monitoring of the more prevalent diseases
The opening of one new community health aid post and three renovated aid posts
The Morobe Mining Joint Ventures’ community affairs team in partnership with Mumeng and Wampar Health Centres fielded
medical visits to Wafi villages, focusing on immunisation of community members and health talks. Some 1 814 outpatients were
treated and 1 837 children were immunised against water-borne diseases (FY14: 4 022 outpatients and 906 children)
41 water supply and sanitation projects have now been completed, servicing 15 000 people
Harmony in action
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98  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Construction of teachers’ and community health officers’ houses, and school toilets at Hidden Valley and Wafi communities
A total of six matric students from Hidden Valley and Wafi-Golpu landowning communities were sponsored for vocational and
university studies in FY15
Entrepreneurial skills training was held during January 2015 for 25 members of the Wafi-Golpu community
Further expansion of the Women’s Development Programme, which is aimed at ensuring women’s issues and needs are heard and
addressed with assistance from Harmony, government, donors and non-governmental organisations
Distribution of teaching and learning materials to classrooms and presentation of excellence awards to 15 students (FY14: 18)
Morobe Mining Joint Ventures’ Cocoa Partnership initiative and collaboration with Monpi Cocoa Limited focused on funding and
training of the Watut cocoa farmers
The Nauti women’s passenger motor vehicle was delivered by the Mineral Resources Authority, through the Small grant programme
during January 2015. Activities are continuously being monitored
The Yinyin Water Supply and Sanitation Project in the Middle Watut Region of the Watut River was completed during 2015. The
project delivered 19 water tap stands, 11 showers and water tap combination with nine latrines were constructed. The water
supply will serve a population of 1 300 community members along the Watut River
Completion of Personal Viability training for 24 small-business entrepreneurs
The Morobe Mining Joint Ventures tuition assistance programme for Hidden Valley and Wafi-Golpu landowners was completed
during 2015 with 95 successful applications, a 62% increase compared with 2014
Relevant Global Reporting Initiative indicators: G4-LA15, G4-SO10
Harmony recognises that extending our supplier network to include emerging businesses makes possible a more equitable distribution
of economic benefits. Our preferential procurement strategy in South Africa complies with the country’s legislation. Harmony’s
procurement processes and expenditure are governed by our group strategy and policy. We support this approach by helping to
develop the business management skills required for these emerging enterprises to succeed.
Our preferential procurement strategy encompasses:
Regional enterprise development centres, which make it easier for qualifying suppliers to do business with our company
Amending tender policies to help Harmony meet Mining Charter requirements
Measuring each mine’s procurement from historically disadvantaged South African entities against targets in the Mining Charter
Small, medium and micro enterprises and/or historically disadvantaged South African-compliant vendor development aimed at
maintaining acceptable standards
Harmony’s preferential procurement strategy promotes expenditure with companies recognised as black economic empowerment
entities under the Mining Charter. Compliance with the target for procurement spend on services for the Doornkop mining licence
was a challenge. In South Africa in FY15, procurement expenditure with black economic empowerment entities stood at R3.8 billion
(US$332 million) or 69% of total discretionary spend (FY14: R3.4 billion (US$333 million) or 63%). The Mining Charter requires the
following three black economic empowerment spend targets:
South African black economic empowerment spend
Required as per Mining Charter
Mining Charter
(% of total spend)
FY15* progress
FY14 progress
Capital goods
* Calculation of these figures was based on Harmony’s financial year 1 July 2014 to 30 June 2015
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  99
Annual procurement spend from multinational suppliers was 0% versus the Mining Charter target of 0.5% of any supply
contract. The Mining Charter of 2010 required all mining companies to “Ensure that multinational suppliers of capital goods
annually contribute a minimum of 0.5% of annual income generated from local mining companies towards socio-economic
development of local communities into a social development fund from 2010”. Harmony engaged all its multinational suppliers
by means of a letter urging them to contribute to socio-economic development, as prescribed by the Mining Charter. Harmony is
also currently exploring the potential of a Harmony-supported fund for this very purpose, which will allow for proper monitoring
of contributions made by our suppliers.
In Papua New Guinea, under agreements with government authorities (local, regional and national level governments),
landowners and communities, we issue contracts to local citizens wherever possible. During the year, contracts valued at
R2.2 billion (US$193 million) were awarded to local companies (FY14: R599 million; US$58 million). Supply expenditure by
Morobe Mining Joint Ventures in FY15 amounted to R3.0 billion (US$267 million), of which R2.2 billion (US$193 million) was
expended in Papua New Guinea or 72.2% (FY14: R3.5 billion; US$340 million and R2.1 billion; US$200 million at 59%). Of the
amount expended in Papua New Guinea, R1.2 billion (US$108 million) was expended in Morobe Province on goods and services
(FY14: R1.2 billion; US$118 million).
Contracts awarded by Morobe Mining Joint Ventures to local landowner companies included catering, fuel haulage, general
freight, plant hire, security, labour hire, cleaning, rehabilitation and bus services. Landowner companies billed R526 million
(US$46 million) during FY15, or 17.2% of Morobe Mining Joint Ventures’ total expenditure (FY14: R347 million/US$34 million
or 10% of expenditure). In line with the current Memorandum of Agreement on the Hidden Valley mine, Morobe Mining Joint
Ventures continues to comply by offering business development opportunities to landowners. These opportunities will increase
with the proposed development of the Golpu project.
Harmony in action
Donation of desks and library books to Werewere Primary School - Wau District in Papua New Guinea
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100  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Total electricity savings of 256 000MWh from all demand-
side management electrical energy optimisation initiatives
implemented. We are on the right trajectory to achieve our five
year target
Harmony is the only gold mining company in the top 8 in the
Carbon Disclosure Project Leadership Performance Index on the
Johannesburg Stock Exchange and in the ‘A’ performance band
on the Johannesburg Stock Exchange’s 100 Climate Performance
Leadership Index
Bioenergy project being commissioned with first gas production
scheduled for February 2016
Memorandum of understanding signed with Department of
Agriculture in the Free State province to develop a mushroom
farm as a final land use
To advance the zero-discharge principle, Harmony is installing a
water treatment plant at Doornkop and is finalising the tender for
a similar solution at Kusasalethu
All actions related to the environment improvement plan for
Hidden Valley completed except for the final site visit by the
Conservation and Environment Protection Authority before
signing off of the Environmental Implementation Plan submission
Exploration licence 2310 for Kili Teke in the Southern Highlands
Province of Papua New Guinea was granted a Level 2A
environment permit for exploration
Two significant incidents in South Africa
Regulatory delays in the issuing of water use licences
Changing environmental legislative framework
In South Africa, potential implementation of carbon
taxes coupled with increased cost of electricity will
impact our operations’ sustainability
We recognise that our business and business processes have, and can have, a negative effect on surrounding communities and
the natural environment, and that it is our responsibility to avoid, mitigate, manage and limit these impacts. At the same time,
what we do and how we do it can have a positive effect on our natural environment and communities; for example, by ensuring
beneficial land use post-mining. We need to identify appropriate, sustainable opportunities for this to occur and ensure that we
maximise these opportunities. In so doing, we will reduce our operating costs and exposure to risk while ensuring that we leave
a lasting, positive legacy.
Relevant material issues:
Protecting our licence to operate
Managing our impact
Reducing our footprint
Deliver lasting environmental benefits
Ultimate oversight for Harmony’s environmental strategy and performance rests with the social and ethics committee of the board.
In addition to an executive environmental manager, an environmental leadership committee drives environmental improvement
strategically at group level, which cascades down to the various operations. At each operation, general managers are accountable
for environmental management, and each operation develops annual environmental management plans to identify opportunities to
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  101
increase compliance and minimise pollution. To ensure legislative compliance, appropriate environmental management systems are
being implemented at all operations to ensure a formal, systematic approach.
Our environmental strategy aims to optimise our environmental performance by managing our environmental impacts, focusing
on effective risk controls, reducing environmental liabilities, ensuring responsible stewardship of our products within our scope of
influence, complying with environmental legislation and regulations, and by creating a learning, sharing environmental culture that
replicates experience from inside and outside the organisation and that shares knowledge and expertise within the group.
In South Africa, as required by the Mineral and Petroleum Resources Development Act, an environmental management programme
has been drawn up for each operation, and submitted to and approved by the Department of Mineral Resources. These plans are
amended when necessary and resubmitted for approval. Other key legislation includes compliance with the National Environmental
Management Act, National Water Act and the National Nuclear Regulator Act.
In Papua New Guinea, we are subject to applicable environmental legislation including specific site conditions for water extraction and
waste discharge attached to the mining tenements and issued by the Papua New Guinea Government Department of Environment
and Conservation. In the fourth quarter of fiscal 2014, the Papua New Guinea Parliament approved the change of the Department
of Environment and Conservation to the Conservation and Environment Protection Authority and this change is expected to be
completed at the end of calendar year 2015. This transition period could cause potential approval delays in FY16.
The board-approved environmental policy – www.harmony.co.za/sustainability/environment – supports the strategy. Further, we
have developed technical and performance standards and guidelines to ensure consistency at all our managed operations, and these
are incorporated into operational environmental management systems and implemented in line with the principles of ISO 14001
standardisation process.
The environmental policy sets out our commitment to ensure that mine closure is undertaken to ensure long-term environmental
stability and beneficial land use post-mining that promotes sustainable livelihoods in our communities. This policy underpins our
understanding of the entire life cycle of our product.
By year end, seven of our long-life mining operations (accounting for 64% of FY15 production) and five of our processing facilities had
been ISO 14001-certified. Our focus in FY16 will be to achieve certification of the Bambanani and Joel mines in South Africa.
As required by law, all our South African operations have approved environmental management programmes that include broad
outlines of closure plans. These environmental management programmes have been approved by the Department of Mineral
Resources. An amendment to Kusasalethu’s environmental management plan, relating to the inclusion of aggregate production
from waste rock, was approved during the year. Amendments to the environmental management plans for Kalgold, Kusasalethu
and two mining rights in the Free State have been submitted.
Harmony in action
Hidden Valley ridge camp
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102  Harmony Gold Mining Company Limited Integrated Annual Report 2015
While closure principles are included in all environmental management programmes, detailed closure plans are being developed for
Masimong and Unisel. Such plans are developed once operations are within five years of planned closure.
At Kalgold, our rehabilitation strategy focuses on returning the tailings to the D-zone pit, eliminating the need for adding to the
surface footprint by way of a tailings dam. All tailings throughout the life of mine can be accommodated in the pit.
In line with revised legislative requirements, integrated water-use licence applications were submitted to the authorities for each
operation in 2006. Our mines continue to operate under the old order water use licences or directives. Harmony is working closely
with the officials of the Department of Water and Sanitation to expedite the issuing of the outstanding new order licences.
Implementation and execution of our environmental strategy is directed by an environmental leadership committee at each operation,
supported by a group-level environmental manager. General managers retain legal responsibility for our operational environmental
performance as well as for compliance with our environmental management plans.
The environmental management system forms the basis for the implementation of the environmental policy and monitoring
compliance, while the environmental management programme report, developed in line with legislative requirements, contains
specific as well as general principles governing environmental management during the life of a mine.
All certified operations maintained their certificates during FY15. Bambanani and Joel will be certified by the end of calendar 2015.
Group-level environmental audits as well as a number of annual compliance audits were undertaken during the year, most notably
by the Department of Mineral Resources. Areas of non-compliance identified by the audits have been or are being addressed.
In Papua New Guinea, we seek to reduce our environmental footprint, largely through accelerated rehabilitation. Hidden Valley’s
environmental management plan is aligned with the ISO 14001 management standard. An important aspect of environmental
management in Papua New Guinea is the environmental awareness training provided to all new employees during induction. This is
reinforced through leadership training courses and the promotion of monthly environmental awareness initiatives aimed at the
workforce as a whole.
An independent environmental audit of the Hidden Valley operation was undertaken by the joint venture partners and the following
corrective actions were implemented during FY15:
improved waste management, closure and decommissioning procedures for waste and fuel oil storage areas
development of a sediment reduction plan that focuses on source control (for example, better drainage around waste dumps and
the stabilisation of exposed slopes) rather than downstream sediment traps
discussion with the Conservation and Environment Protection Authority on how alternative and more site-specific discharge
criteria for cobalt and sediment can be developed
training of sewage treatment plant operators to ensure that consistent treatment procedures are followed, and on proper sampling
In FY10, the Papua New Guinea Conservation and Environment Protection Authority commissioned a third-party compliance audit
of the Hidden Valley mine to address stakeholder concerns about the sedimentation impacts of mining on the Watut River. This
compliance audit led to the development and implementation of a Conservation and Environment Protection Authority-approved
environmental improvement plan and, in FY11, the appointment of an external stakeholder advisory panel. For additional information
on this panel, please refer to the Sustainable Development Report 2012 which can be found at www.financialresults.co.za/2012/
By the end of December 2014, all 40 actions identified in the environmental improvement plan had been addressed and application
made to the Conservation and Environment Protection Authority for the environmental improvement plan to be formally closed out.
Feedback is awaited from the Conservation and Environment Protection Authority.
In terms of compliance, the Conservation and Environment Protection Authority requested that Hidden Valley apply for an amendment
to the current environmental permit regarding conditions relating to turbidity and cobalt levels. Hidden Valley is preparing to apply
for an amendment to its environmental permit for cobalt and turbidity as requested. Discussions with Harmony representatives have
been held to ensure that the proposed amendment will address additional concerns beside cobalt and turbidity.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  103
Relevant Global Reporting Initiative indicators: G4-EN24, G4-EN29, G4-EN34
Our environmental management plans provide for the monitoring, reporting and remediation of environmental incidents, including
the direct or indirect discharge of water beyond our mining area.
Our environmental classification system categorises incidents on a scale of 1 to 5. A level 5 incident has mitigation costs in excess
of R3 million and a very significant impact on highly valued species, habitat or eco-system, potentially resulting in international
condemnation and possible director liability. A level 1 incident represents low-level non-conformance, with mitigation costs of less
than R100 000 and where there is limited damage to a minimal area of low impact and where any complaints are localised.
During FY15, two significant environmental incidents were reported. A level 3 incident may result in either mitigation costs of
between R250 000 and R500 000 or serious medium-term environmental effects, breaches in legislation and may result in serious
adverse media attention. A level 4 incident has a mitigation cost in excess of R1 million, with the possibility of significant fines or
Environmental incidents in FY15
Relevant Global Reporting Initiative indicators: G4-EN8, G4-SO8
31 October 2014
Kusasalethu (level 3)
A directive was issued to Kusasalethu to stop the discharge of water being pumped
from underground mine workings. With the rains, storage capacity in the return
water dam was depleted resulting in some water having to be discharged under
controlled conditions. Kusasalethu developed a management plan to cease the
discharge and submitted this to the Department of Water Affairs, which accepted
it. Water sampling showed no impact on the receiving environment.
4 March 2015
Kalgold (level 4)
Kalgold operation received an administrative fine of R200 000 for the construction
of a haul road without a record of decision issued by the provincial municipality.
Harmony had been operating in line with an approved environmental plan. This
fine was issued during the transitional period when the National Environmental
Management Act and Department of Mineral Resources legislative processes
were unclear. The mining industry has historically disputed the need to apply for
authorisation in terms of the National Environmental Management Act for activities
ancillary or incidental to mining operations undertaken in accordance with an
environmental management plan approved in terms of the Mineral and Petroleum
Resources Development Act 28 of 2002.
No fines or sanctions were received during FY15 for non-compliance with environmental laws and regulations in Papua New Guinea.
Furthermore, mechanisms are in place to enable stakeholders to report any grievances they might have concerning environmental
impacts caused by Harmony’s operations in South Africa and Papua New Guinea.
Harmony in action
Tailings storage facility and processing plant, Hidden Valley
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104  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Relevant Global Reporting Initiative indicators: G4-EN1
The primary materials used by Harmony are: the rock we mine, the ore we process and the liquefied petroleum gas, grease, cyanide,
fuels and lubricating and hydraulic oils we use.
Materials used
FY13 ****
Rock mined (ore and waste) (000t)
29 948*
39 133
38 668
34 868
30 250
Ore mined (000t)
13 041
14 798
13 312
14 010
12 063
Waste rock recycled (000t)
6 647
7 058
8 008
8 191
3 200
Slimes recycled (000t)
5 987
5 933
5 358
6 955
5 236
Liquefied petroleum gas (t)
Grease (t)
Cyanide (000t)
Petrol and diesel (000l)
24 464
27 148 **
61 354 ***
30 135
44 788
Lubricating and hydraulic oil (000l)
2 772
3 011
3 860
2 457
2 206
Reduction is – in the main – due to closure of Target 3 and restructuring of Kusasalethu’s production profile
Reduction in petrol and diesel consumption is as a result of closing the Kimberley Reef area at Doornkop and the decline in the
consumption at Hidden Valley with the increased use of hydropower
Increase was predominantly due to increased usage at Hidden Valley for the period during which the overland conveyor malfunctioned
****  2013 excludes Evander. Previous years not restated
Harmony is a signatory to the International Cyanide Management Code for the manufacture, transport and use of cyanide in
producing gold (the Cyanide Code). This voluntary industry code was developed by the United Nations Environment Programme and
the International Council on Mining and Metals. All of our major gold mining operations and most of our metallurgical plants have
been certified as compliant.
Seven of our plants are certified in terms of the Cyanide Code – the Harmony One, Central, Target, Joel, Kusasalethu, Doornkop
and Hidden Valley plants
At Kalgold, a cyanide decontamination plant is being commissioned to optimise the consumption and disposal of cyanide. We
continue to implement controls to move closer to compliance, which will be followed by a review of the plant’s application
for certification
The Phoenix retreatment operation (Saaiplaas plant) was voluntarily deregistered following an external audit, which confirmed that
there was a problem with weak acid dissociable cyanide concentrations in the tailings. External experts have been commissioned
to investigate potential solutions
The Hidden Valley plant received its Cyanide Code compliance certificate in FY14. Harmony and Newcrest are signatories to
the Cyanide Code and, since commissioning of the process plant at Hidden Valley in FY10, monitoring has shown that cyanide
concentrations at the Nauti Village compliance point (as stipulated in the permit) are in line with environmental permit limits
Harmony used 14.3 kilotonnes of cyanide during FY15 (FY14: 14.7 kilotonnes). The decrease in cyanide consumption was largely
due to fewer tonnes of ore being treated in 2015 (18 063 kilotonnes) as compared to 2014 (18 784 kilotonnes)
Relevant Global Reporting Initiative indicators: G4-EN3, G4-EN5 and G4-EN6
Reducing and managing the energy we consume are fundamental business considerations and environmentally imperative.
Optimising our energy use will in turn optimise our carbon emissions.
Harmony’s operations consume a significant amount of electricity in the production of gold. We account for our product to the point
at which it is sent for refining (by Rand Refinery in South Africa and by Perth Refinery in Western Australia).
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  105
In South Africa, almost all of the energy we consume is indirect energy, in the form of electricity purchased from the national power
utility, Eskom, which is largely derived from coal-fired power stations with very little scope for the large-scale purchase of energy
from renewable sources.
In Papua New Guinea, we aim to maximise our use of alternative energy sources. In 2011, Hidden Valley was connected to a new
hydropower transmission line, part of the Papua New Guinea electricity grid, and the operation is now predominantly driven by a
hydro-powered electricity grid. In this reporting year 83% of Hidden Valley’s power consumption was generated by hydropower, an
increase on the previous year (70%).
Energy consumption is a significant portion of our operating costs in South Africa (16%) but less so in Papua New Guinea (8%).
Direct and indirect energy consumption (MWh)
% of total
energy used
% of total
energy used
South Africa
Direct 1
Indirect 3
2 608 157
2 756 029
2 608 157
2 756 029
Papua New Guinea
Direct 1
10 355
18 354
Indirect 2
48 863
42 060
59 218
60 414
Harmony total
10 355
18 354
2 657 020
2 798 089
2 667 375
2 816 443
Renewable energy – hydropower-generated electricity
Non-renewable – coal-fired power stations (Eskom)
Energy consumption
Intensity consumption (MWh/tonne treated)
Absolute consumption (MWh)
2 667 375
2 816 443
2 704 220
3 058 219
3 534 000
FY 15
South Africa
2 608 157
2 756 029
2 664 111
3 013 150
3 429 000
Papua New Guinea
59 218
60 414
51 414
50 312
52 508
2 667 375
2 816 443
2 704 220
3 058 219
3 534 000
Harmony is developing a strategic advantage in the efficient use of energy, while managing rising energy costs and reducing
its emission intensity. Harmony’s revised energy efficiency and climate change policy and strategy articulate our commitment to
improving energy efficiency.
Our primary focus has been on making mine cooling, compressed air, water management and ventilation more efficient. In addition,
we have improved solar generation capacity within the group. Together, this contributed to a decrease in power consumption and
an associated decrease in our energy-use intensity factors.
By the end of FY15, 12 projects had been implemented and 19 were on-going. Once completed, these will result in a total combined
annual energy saving of 64 040MWh. The energy-efficient fans installed underground at Kusasalethu as well as Tshepong’s
optimisation of compressed air projects are exceeding expectations in terms of energy savings. Most of the other projects are on target
or slightly below target.
Harmony in action
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106  Harmony Gold Mining Company Limited Integrated Annual Report 2015
While we will continue to optimise efficiencies within the group, our strategy will progress to enhancing our energy mix with increased
use of solar, hydropower and bio-energy in the short term.
In FY15, total energy use was 2 667 375MWh (FY14: 2 816 443MWh), down by 5% with corresponding energy intensity levels of
0.15MWh/tonne treated (FY14: 0.15MWh/tonne). In all, our energy consumption has declined by 24% in the past five years and our
intensity usage by 21%.
Harmony South Africa’s electricity consumption decreased by 149GWh and emissions by 153 000t CO2e (FY14: 92GWh and 96 879t
CO2e respectively). The electricity generated from diesel at Papua New Guinea was 10 355MWh (FY14: 18 354MWh).
Harmony’s environmental strategy has been influenced by the company’s drive to reduce energy consumption and greenhouse gas
emissions, as well as by the need to adapt to climate change and to diversify its energy mix. Our energy management strategy is thus
aligned with that of our business strategy, particularly regarding effective carbon management. Our responsible stewardship of the
environment encompasses:
Promotion of energy efficiency at our deep-level operations in South Africa
Design and development of renewable energy driven operations in Papua New Guinea
Optimisation and rebalancing of our asset portfolio by decommissioning operations where the marginal returns of mining payable
reserves are outweighed by the rising cost of the energy to mine those reserves
Promotion of an alternative energy mix
Alignment of our rehabilitation programme to support the green energy agenda
Harmony emits a certain quantity of carbon given the fossil fuel (petrol/diesel) consumed in transporting people and material in the
course of our business. We have embarked on a drive to optimise our fleet that includes reducing the number of vehicles in the
supply chain fleet as well as their average age. This has resulted in less fuel being used by transportation services to all operations,
which has in turn led to lower carbon emissions. We monitor our fuel consumption monthly, as part of a standard set of key
performance indicator measurements. Reducing the average fleet age also leads to reduced emissions as there is a direct correlation
between the fleet age, kilometres travelled and oil consumption, not to mention the maintenance costs involved in running an
ageing fleet. In addition to these efforts, as shown in the table above, our energy source in Papua New Guinea is now 83% from
hydroelectricity and 17% from diesel to reduce greenhouse gas emissions.
Addressing climate change by optimising our energy usage
Relevant Global Reporting Initiative indicators: G4-EC2
The company is well-placed to capitalise on climate change opportunities that involve land rehabilitation, biodiversity, energy
management, carbon sequestration and solar power.
Climate change risks have influenced the design of new assets and the operation of current assets (in terms of energy efficiency and
alternative energy use). Opportunities presented by climate change have been included in mine closure plans regarding post-mining
land use. The climate change risks and opportunities affecting Harmony’s business strategy are monitored continuously at an asset
level and are communicated to the board throughout the year. The overall strategy is reviewed annually.
Those climate change aspects that have had the greatest influence on Harmony’s business strategy are:
Regulatory risks: The major regulatory risk facing Harmony’s South African operations is the proposed carbon tax. While, in the past,
we have adjusted our strategy to ensure that this tax forms part of our long-term planning and have aspired to take advantage of the
tax relief associated with carbon tax offsets, Harmony remains seriously concerned about the implications of rising energy costs and
carbon pricing impacts on the viability of its business. Harmony, through the Chamber of Mines, is collaborating with government
on the threat that the carbon tax poses to our business in the current economic climate in which we are operating.
Energy pricing: Deep-level mining is inherently energy-intensive. Given the impact of climate change on energy pricing, Harmony’s
strategy is to rebalance its portfolio towards shallower/opencast/bulk/mechanised mining operations. Harmony’s portfolio in Papua
New Guinea includes Hidden Valley, an opencast mine, and the Golpu project, which will be a less emissions-intensive, underground
block-cave operation.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  107
Physical risks: Significant climate-related physical risks facing Harmony include a change in rainfall patterns and the consequential
risk of water supply. Intermittent water supply poses a threat to the operational continuity of Harmony’s mines and thus has the
highest impact on the profitability of the business. As such, Harmony’s strategy is to ensure that no mine is affected by water
constraints through the implementation of a holistic water management plan.
Harmony’s short-term strategy for next five years is driven by adaptation, conservation and a move towards achieving an alternative
energy mix to supply its operations. In terms of conservation, Harmony is reducing its grid-electricity consumption and greenhouse
gas emissions through targeted year on year and multi-year reductions. The most recent reductions have been achieved by the
implementation of a suite of energy efficiency initiatives and the closure of carbon-intensive shafts. Harmony is set to increase its use
of green energy derived from hydropower, solar power and bio-mass.
Harmony’s long-term strategy is based on two elements to mitigate the risk of climate change:
Rebalancing our asset portfolio: In the rebalancing of our portfolio, energy-intensive operations – as one of the reasons to close
a mined-out, unprofitable mine – are being closed and the focus in the long term will be on the development of lower-carbon
intensity assets. This will minimise the impact of increased energy costs and our potential exposure to carbon taxes. In FY14, Steyn
2 shaft and the Doornkop Kimberley section were closed and, in FY15, Target 3 was placed on care and maintenance. Shafts
decommissioned in recent years have been rehabilitated; their shaft cavities have been filled with inert material and capped to
prevent, among other things, potential fugitive methane emissions. This process is now underway at Steyn 2. Our operation in
Papua New Guinea has significantly lower emission intensities than its South African counterparts and has been designed for
energy efficiency with a predominantly renewable energy base
Post-mining land use: Several options are being considered for post-mine life land use, such as the creation of carbon sinks and
the conversion of rehabilitated land to the cultivation of non-edible crops for renewable bio-energy production (the land is not
suitable for food production). This will reduce the demand for coal-based electricity, thereby mitigating the effects of climate
change. Non-edible crops will be planted on Harmony-owned land for the production of energy such as bio-gas and bio-char
(charcoal made from the conversion of bio-mass, using heat by means of pyrolysis, into carbon in the form of a final product that
is used in agriculture to improve land quality)
We have also begun engagements with our major suppliers to reduce climate change risks across the value chain. Group-level
absolute and intensity-based greenhouse gas emission reduction targets have been set for the five years to FY18 (see Outlook on
page 119).
Harmony in action
Kalgold plant
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108  Harmony Gold Mining Company Limited Integrated Annual Report 2015
We continue to support the South African government’s energy-efficiency strategy, announced in 2005, which set a national
improvement target of 12% by 2015. After the electricity crisis of 2008, when structural failures in the national grid led to a
significant decrease in electricity capacity, Eskom imposed a 10% reduction in energy supply to the mining industry. We have
worked closely with Eskom to manage electricity usage as part of our commitment to reduce energy consumption.
Electricity tariffs have risen steadily in South Africa since 2008 and, given electricity’s relatively significant contribution to operating
costs, tariff increases exceeding 8% will have an impact on the sustainability of several of our operations. Our work with Eskom
to manage electricity usage includes the use of demand-side management strategies to reduce electricity consumption during
peak periods. Demand-side management involves reduced energy use during periods of high demand by, for example, scheduled
pumping, compressed air, cooling, hoisting and ventilation to coincide with cheaper off-peak periods, making more efficient use
of Eskom tariffs that reward load shifting and load clipping, and improve the efficiency of our operations.
By the end of FY15, four demand-side management and eight Harmony-funded projects had been implemented and 17
additional initiatives were identified, and are in various stages of investigation or implementation. Together these projects, once
completed, will result in a total annual energy saving of 64 040MWh. Initiatives undertaken by the operations, such as stopping
compressors and main ventilation fans, are achieving the planned energy savings. Certain ‘old’ completed projects that were
re-implemented as part of a maintenance programme have resulted in achieving the target set, others had limited success given
operational challenges such as excessive water consumption. This will be rectified with the implementation of new projects to
reduce water wastage and the use of compressed air in underground mines.
A further 17 energy efficiency projects are planned for FY16, some of which are Harmony initiatives while others await funding
approval from Eskom. These 17 projects, if implemented, will contribute to annual savings of 82 301MWh and will be prioritised
for completion in FY16.
The energy-saving initiatives planned for FY16 include:
Bulk air cooler peak-load clipping to minimise power consumption during national peak hours at Kusasalethu
Installation of energy-efficient ventilation fans in seven operating shafts registered as seven Demand Side Management
Optimisation of ore transport from shafts to gold plants
Load clipping project on fridge plants at Masimong
Optimisation of compressed air use in mines using compressed air for cooling
Optimisation of compressed air at Doornkop
Optimisation of compressed air using stand-alone compressors at Phakisa
Optimisation of compressed air and water use at Tshepong and Kusasalethu
Implementation of ISO 50001
Installation of energy-efficient motor drives
Harmony remains committed to the challenge of creating an enabling environment, and to the adequate allocation of resources
to achieve our environmental goals and commitments. Dedicated staff are managing our energy-efficiency programme.
The budgetary requirement for these 17 projects is R55 million and financial constraints may restrict the number of projects to
be implemented during FY16.
Our aim is to maximise the use of alternative energy sources. While opportunities in South Africa are currently limited, government-
led initiatives have increased the scope for alternative energy generation in the future, and Harmony wants to be at the forefront of
this process (see discussion on ‘South Africa: Committed to renewable energy’ on page 109).
The situation in Papua New Guinea is a little different where a greenhouse gas management strategy has been developed for
Harmony’s joint venture Papua New Guinea operations. Here, greenhouse gas emissions are direct (Scope 1) emissions only since the
main source of power is hydropower (Scope 2) which does not generate greenhouse gas emissions.
Our aim is to reduce our reliance on diesel-generated power at Hidden Valley and the amount of fuel that needs to be trucked to this
remote site. Management has set a target that hydropower should make up 75% to 80% of energy used at Hidden Valley by FY16.
The Hidden Valley plant, which accounts for the vast majority (about 85%) of the power consumed at this operation, is equipped
with the latest technology to ensure optimal use of energy.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  109
The Golpu project will be designed to meet environmental best practice. Environmental design criteria incorporate Papua New
Guinean statutory requirements and, where applicable, Australian, World Health Organisation and International Finance Corporation
(part of the World Bank Group) standards or guidelines. Prefeasibility infrastructure designs have been scoped with energy efficiency
and water conservation in mind. The use of hydropower, natural gas or bio-mass for power generation is also being considered as
part of the feasibility study, which is scheduled for completion by the end of the first half of FY16.
The National Energy Regulator of South Africa approved a renewable energy feed-in tariff guideline in 2009. This guideline has
stimulated the development of renewable energy projects, which are becoming a more feasible investment option.
Harmony is currently assessing various energy-generating initiatives for the land it owns in South Africa. Generation of additional
power will help to alleviate current supply concerns and the cost of energy.
Harmony is also implementing a bio-energy project involving the propagation of bio-crops on mine-impacted land in the Free State
to generate natural gas as a substitute for fossil fuels in the company’s Harmony One gold plant elution and carbon regeneration
circuits. Phase 1 of the project aims to deliver 71 000GJ of energy with a view to producing first gas in February 2016 and aiming
to ramp up to generate 187GJ within 24 months. This project aims to turn mine-impacted land to account by creating a value-
adding use for it and, in so doing, promote skills development and job creation for communities and ensure a sustainable legacy
in the Free State.
Following a feasibility study for the development of bio-mass capability in the Free State, implementation began in September
2014. The aim of the project is to use mine-impacted land as part of the provincial rehabilitation initiative to create economic
opportunities for local communities. As part of this process, we will convert electrical and polyfuel heating of elution water at our
gold plants to bio-gas heating.
Bioenergy will be produced in the Free State from Giant King Grass, sweet sorghum or sugar beet to supplement fossil energy.
Solar power
Harmony is building expertise in renewable energy and participating in a group that is developing a 5MW solar park at Kalgold
in terms of the government’s renewable energy power programme. The solar energy it generates will be fed into the Eskom
electricity grid. The proposal for this project was submitted in the current round of public bidding.
Another two solar parks involving photovoltaic plants (two 10MW plants), planned for the Free State, are currently in environmental
impact assessment stage. A third initiative, a 40MW plant at the African Rainbow Minerals Gold number 1 shaft, is also being
investigated. All three projects will be implemented on Harmony-owned land.
Carbon sink
Harmony undertook a prefeasibility study to establish a bio-crop reforestation plantation on rehabilitated land in Virginia, Free
State. The aim is to use the bio-crop to generate bio-char for community consumption, and to conduct trials to ascertain whether
or not this crop could be planted and used on tailings dams for dust suppression and final rehabilitation as a carbon sink. With
recent advances in the cultivation of Giant King Grass on affected land, and the ability of this grass to sequester carbon where it
remains in the bio-mass of the grass, the project has developed into an opportunity for a carbon sink. Given the success of this
project, it will be implemented as part of Harmony’s rehabilitation strategy for its tailings dams. Planting is expected to begin
in FY16.
Power-generating turbines
At Kusasalethu, three 3.1MW power-generating turbines were commissioned. These turbines are generating power from surface
mine water transported underground. The targeted power generation capacity has been reduced as less water is now consumed
by the mine. Commissioning of the fourth turbine has been postponed to FY16.
This energy will be fed directly into the mine grid and hence reduce Harmony’s Eskom consumption. The annual cost saving is
estimated at R6.1 million.
Collectively, these projects could reduce CO2emissions by 635 000t by FY16 but many of them require supplementary funding to
be executed timeously. The purpose of carbon trading is to maximise financial gain from energy-saving initiatives while building
our reputation as a responsible corporate citizen and environmental steward. Private-sector experts are working closely with
National Treasury in South Africa to develop a carbon offsets/trading scheme. Harmony is monitoring the debate on the subject in
order to identify opportunities for trading. No carbon projects have been registered yet.
Harmony in action
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110  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Climate change and greenhouse gas emissions
Relevant Global Reporting Initiative indicators: G4-EC4, G4-EN15, G4-EN16, G4-EN17, G4-EN18 and G4-EN19
Harmony’s Scope 1 and Scope 2 emissions in FY15 were 2 753 303t CO2e (FY14: 2 819 762t CO2e) with a corresponding intensity
of 0.15 t CO2e/ton milled (FY14: 0.15t CO2e/ton milled). Indirect emissions, stemming largely from electricity purchased from Eskom,
accounted for 98% of emissions. In FY15, in terms of Scope 1 and Scope 2, we decreased our carbon emissions by 2%, compared
to an increase of 2.8% in FY14.
Scope 1 emissions breakdown by source (CO2e tonnes)
64 244
71 728
90 951
1 748
2 079
2 026
1 337
Total scope 1
66 902
74 758
94 314
Scope 1 emissions breakdown by source (%)
Total scope 1
Total scope 1, 2 and 3 emissions (CO2e tonnes)
Scope 1
66 902
74 758
94 314
Scope 2
2 686 401
2 745 005
2 648 126
Scope 3
686 233
661 515
616 978
3 439 536
3 481 278
3 359 418
Total scope 1, 2 and 3 emissions (%)
Scope 1
Scope 2
Scope 3
Scope 1 emissions intensity by source (CO2e tonnes/tonne treated)
Total scope 1, 2 and 3 emissions intensity (CO2e tonnes/tonne treated)
Scope 1
Scope 2
Scope 3
In FY15, our total carbon emissions decreased by 1.2% with a corresponding increase in intensity which averaged 0.191t CO2e/tonne
treated. This increase was a result of the decrease in tonnes treated during the year. While total carbon emissions increased by 2.8% in
FY14, our emission intensity remains steady at 0.183t CO2e/tonne treated.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  111
Carbon-related legislation
Following the release for public comment of a policy paper on South Africa’s proposed carbon tax in FY13, Harmony raised
concerns about the potential impacts of this tax on the gold industry’s competitiveness. Harmony’s view was that the proposed
method of taxation posed a significant risk to the business as the company would not benefit from any tax relief given to the
largest contributor (Eskom) to our carbon footprint. Through Harmony’s participation in the National Treasury’s working group
and Chamber of Mines’ initiatives, we have proposed that companies should be eligible for tax relief for Scope 1 and Scope 2
emissions. We have submitted written commentary in this regard, recommending that the carbon tax should be a deductible cost
for corporate income taxes and that levels of support for early mover status (incentives for compliance versus penalties) are raised
in line with global practice.
The South African government’s initial plan to implement a carbon tax from 2015 has been delayed to 2016. Following extensive
public consultation on the proposed tax in 2013, several adjustments to the policy proposal are expected, including the use of
part of the revenue generated by the carbon tax to fund energy-efficiency tax incentive schemes. With the current electricity cost
increase of 12.65% and further increases planned in the future already threatening the financial viability of our operations, any
additional cost burden by way of carbon tax would merely exacerbate the situation. Harmony is lobbying, through the Chamber of
Mines, to implement a carbon tax that is reasonable, does not destroy international competitiveness and recognises ‘early movers’.
In this reporting year, the Chamber of Mines – in response to the proposed carbon tax – voiced its opposition to the tax, reiterating
that the “mining industry is grappling with, in some instances, significantly reduced revenue outlook”. Harmony is supportive of
this position.
A Climate Change Office was established in Papua New Guinea in 2010, but it is a small and under-resourced government office. This
office is still developing its greenhouse gas and other data collection methodologies. In FY13, the Papua New Guinea government
called for comment on its proposed final draft climate change policy. This policy was approved in FY15.
Carbon reporting
Just prior to year end, we submitted our ninth annual response to the Carbon Disclosure Project. Results from our previous
submission – released in November 2014 – indicated that we had successively improved our reporting on and our performance
regarding carbon emissions. Harmony attained a score of 100% for carbon disclosure and band “A” performance for leadership in
respect of energy and climate change. The Carbon Disclosure Project assesses companies’ responses against two parallel scoring
schemes, namely performance and disclosure. The highest scoring companies for performance and/or disclosure are recorded in
the Carbon Disclosure Project Climate Performance Leadership Index and/or the Climate Disclosure Leadership Index. Harmony
is the only South African company to receive platinum awards, the highest award, in the disclosure and performance categories.
Harmony in action
Propagation of bio-crops on mine-impacted land to generate natural gas as an alternative to fossil fuels
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112  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Engagement with suppliers and their environmental impacts
Relevant Global Reporting Initiative indicators: G4-12, G4-EN32, G4-EN33, G4-HR11
We manage our supply chain risk by engaging continuously with our top 50 suppliers regarding their greenhouse gas emissions
and climate change strategies. In FY14 specifically, for the first time, our timber supplier calculated its product carbon footprint
and shared the findings with us.
While environmental management and compliance with various environmental legislation and regulations, among others,
have been included in the general conditions of contract for our suppliers, screening of suppliers has not yet been conducted.
Should any suppliers be found to have contravened the legal requirements specified or to be non-complaint, our contracts with
them will be suspended. To date, there have not been any suspensions, and we have not received reports of grievances against
suppliers regarding adverse impacts on the environment.
Engaging with our suppliers on greenhouse gas emissions is a key component of our overall sustainability goals. Although
the company already has an environmental clause in its existing supplier contracts, we will include a more specific greenhouse
gas-related clause in future supplier contracts. This clause will state that all suppliers must agree to introduce a greenhouse
gas reporting system for the products we purchase and to send information of their carbon footprint to Harmony every year.
Working with suppliers to improve their greenhouse gas performances will help reduce our Scope 3 emissions over time.
We are engaging with our top suppliers on greenhouse gas emissions to reduce climate change risks across the value chain.
Supply chain has made great strides in managing its own footprint with initiatives that have reduced its footprint by reducing
fuel consumption by approximately 29% in the past five years.
In addition, Harmony is investigating the potential to produce renewable energy in the form of bio-gas. The feedstock for this
bio-gas will be energy crops (bio-crops) planted on Harmony-owned impacted land. These management methods and specific
activities carried out in this reporting year positions Harmony to manage the risk presented by having only one supplier of
polyfuel currently. The bio-gas project forms part of our risk management strategy to reduce our energy consumption and our
dependency on energy generated by non-renewable sources.
Relevant Global Reporting Initiative indicators: G4-EN8, G4-EN9 and G4-EN10
Significant amounts of water are used in the development and growth of our assets. Access to this resource is crucial, especially in
South Africa where water is becoming a scarce resource. The risks associated with the limited availability of water in the country
are high and intermittent water supplies pose a significant threat to the operational continuity of our mines and the profitability of
our business. In FY13, a strategy to reduce dependency on existing groundwater infrastructure was implemented and a group-wide
campaign to re-use processed water was initiated.
The holding capacities of the water dams at Kusasalethu have been upgraded. This involved desilting of these dams and enhanced
pumping capabilities, on surface and underground, to enable them to cope with the greater volumes.
At Kalgold, a comprehensive geohydrological assessment informed a revision of the water balance. Technical changes were
implemented at the plant and tailings storage facilities to maximise recovery of water for re-use. Similar work regarding capacity
management as well as water efficiency has been completed at Doornkop.
Our South African operations do not draw water directly from surface sources, except for Kalgold which draws water from an
aquifer. Our other operations source water from bulk water service providers and municipalities, surface water run-off, water that
enters underground mining operations and is pumped to the surface, recycled water and boreholes.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  113
Water use
Water used for primary activities
14 614
16 495
18 556
38 011
36 671
Potable water from external sources
11 993
13 139
15 610
15 519
14 509
Non-potable water from external sources
2 620
3 355
2 946
22 492
22 163
Surface water used
1 230
1 023
1 601
Groundwater used
1 844
1 550
1 716
21 469
22 096
Water recycled in process
38 338
24 531
27 593
38 337
8 266
Percentage of water recycled
* FY13 excludes Evander and therefore some reductions occurred from the previous year
Water use for primary activities Measured
Intensity consumption
000m3/tonne treated
Water used for primary activities
14 614
16 495
18 556
38 011
36 671
The total amount of water used for primary activities declined in FY15 to 14 613 602 m3with the intensity of 0.81 m3/tonne treated
(2014: 16 495 284m3, and intensity of 0.88m3/tonne treated). Harmony has adopted a group-wide campaign to re-use process
water in order to reduce our dependency on existing groundwater. In particular, our long-term targets are to reduce the amount of
water used for primary activities by 4.5%, while increasing the amount of water recycled by 5% – thereby improving our water-use
efficiency as measured by the volume of water used per tonne treated. These targets are set to be reached in FY18.
The following drought-risk mitigation initiatives continued in FY15:
Deposition of tailings into the pit enhances recovery of water for re-use in the processing activities at Kalgold
Commissioning of a water treatment plant at Doornkop and Kusasalethu to encourage recycling and reduce dependency on
potable sources
Implementation of process changes to improve water efficiency
Optimisation of water separation and recycling systems
Construction of larger return water dams and installation of large covered tanks to reduce evaporation
At Hidden Valley in Papua New Guinea, the topography together with the high levels of rainfall and low levels of evaporation pose
significant water management challenges. Two main water management techniques in use are:
controlled run-off of rainfall to prevent erosion and sediment entering the river system
conservation of site-water used to limit the volumes of treated waste water discharged into the river system
Most of the raw water required for operations at Hidden Valley is drawn from the Pihema Creek and used for key processes in
the processing plant and related ore-processing activities. Although process water recycling is prioritised, the high rainfall and low
evaporation typical in this tropical environment creates a positive water balance. These conditions, together with the requirement
to minimise water storage in the tailings storage facility, cause a high rate of water discharge to the environment. Minimising raw-
water use is also essential to protect the mine during occasional droughts when the availability of river water can be greatly reduced.
The Hidden Valley operation treats all water to prescribed standards before it is discharged into the environment and the joint
venture partners continuously monitor and manage the environmental impact of the mine on the Watut River system. River impact
studies are integral to Hidden Valley’s overall environmental monitoring programme. The environment and mine operational teams at
Hidden Valley meet on a quarterly basis with representatives of Harmony and Newcrest Mining Limited, to review efforts to improve
waste dump design, the compliance status of the tailings storage facility and water discharge results. Quality assurance/control
programmes have been implemented to monitor construction of the waste dump and tailings storage facility. This programme
included an assessment of the adequacy of sediment and run-off control measures. A significant improvement in waste dump
design/build and tailings management is being achieved.
Furthermore, progress was made in reducing the discharge of mine-related sediment into the Watut River. There is scheduled
monitoring of water quality, water extraction and discharges to ensure compliance with permit parameters. Lime dosing has continued
Harmony in action
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114  Harmony Gold Mining Company Limited Integrated Annual Report 2015
at the Watut River to control acidity and dissolved metal levels. At the sewage treatment plant, new blowers and more frequent
operator training have contributed to improved compliance with permitted discharge criteria. The outcomes and recommendations
of the various monitoring reports have been used to inform management’s environmental management plans.
Acid mine drainage
Acid mine drainage is the occurrence of highly acidic water, usually containing high concentrations of metals, sulphides and salts as
a consequence of mining activity. Major sources of acid mine drainage include drainage from underground mine shafts, run-off and
discharge from open pits and mine waste dumps, tailings and ore stockpiles. Tailings and ore stockpiles make up nearly 88% of all
waste produced in South Africa.
We manage fissure water at all of our operations. When there is a risk that rising water levels underground could either hinder access
to our own ore reserves, those of other operations or harm the environment, water is pumped to surface. Our water management
strategy includes intercepting this water before it is polluted underground. When brought to surface, it is consumed as plant intake.
As the mines in the Witwatersrand Basin are interconnected, any tactical response to acid mine drainage on mine closure must be
considered from a regional perspective. We continue to work closely with our regional partners to identify the long-term risks of acid
mine drainage and to establish sustainable solutions.
In 2012 and 2013, geohydrological assessments were undertaken in the Free State region, Kalgold and Doornkop. With regard to
acid mine drainage, the studies confirmed that there was no risk of decant from the Free State operations or Kalgold. From the
perspective of surface water pollution, rehabilitation has been prioritised at the joint metallurgical scheme site and the acid plant site
in the Free State, and at the decommissioned shafts and infrastructure in the Free State and at Kusasalethu.
Water is being discharged from our Doornkop operation under directive and is in the licensing process. Based on the draft licence
received, Doornkop is able to comply with its licensing conditions. An intensive water-monitoring programme is in place and
reporting to the regulator takes place routinely.
In Papua New Guinea, the issue is with acid rock drainage (which is the same as acid mine drainage) as a result of waste rock dumps.
Environmental impacts are mitigated by the construction of engineered waste dumps and controlled placement of potentially acid-
forming waste rock. When required, lime is added to the process-water discharge to maintain natural levels of alkalinity at the
compliance point. Water sampling and studies continue to improve our understanding of acid rock drainage impacts , and enable us
to formulate plans for longer-term reduction and mitigation.
We recognise that we are custodians of the land we affect and manage. While some aspects of our operations – particularly
open-pit mining, waste and tailings deposition and the construction of physical structures – entail altering the physical landscape
permanently, we believe that, once mining has come to an end, it is important to rehabilitate the land to effective and appropriate
post-mining land use. Rehabilitation and closure have, therefore, been incorporated into overall planning from concept stage for
new operations and during the life of mine for existing operations. This includes ensuring that the necessary funding mechanisms
are in place. Continuous efforts are made to identify land for rehabilitation and, where feasible, we refurbish infrastructure for use
by local communities.
Biodiversity, land management and conservation
Relevant Global Reporting Initiative indicators: G4-EN12, G4-EN14, G4-EN31, MM1, MM2
Harmony has strategies in place to manage the impacts of our operations on biodiversity. Environmental rehabilitation activities to
restore the habitat for native species are on-going.
Biodiversity management plans are implemented at all sites, either through their respective mine closure plans, environmental
management plans or specific biodiversity action plans – whichever is the most appropriate. Biodiversity action plans involve the
protection and conservation of indigenous plants as well as the planned, progressive removal of alien and invasive plant species.
In addition, in the Free State, a nursery has been established on rehabilitated ground to cultivate indigenous species to be used to
repopulate affected or remediated land. Harmony has approximately 65 000ha of land under management in mining rights and
disturbed areas that are under rehabilitation. None of our producing operations are in areas of high biodiversity value, inside or
outside protected areas, and only one of our operational areas affects listed International Union for Conservation of Nature Red Data
species (see page 115).
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  115
The following conservation projects are underway in the Free State:
Avianator programme: This is a partnership with BirdLife South Africa. We provided the financial resources to design the
curriculum and the funds for its implementation while BirdLife South Africa presented the course.
The course teaches young people about the value of birds and of their respective habitats. Additional curriculum resources are
provided to the teachers together with training and monitoring modules to ensure success of the project. Since its inception in
2013, Harmony’s donation enabled BirdLife South Africa to assist 10 underprivileged schools during FY15 to improve the teachers’
skills in teaching the children about birds and their habitats. Through Harmony’s support the programme has expanded to include
an additional seven schools in Thabong, a township on the outskirts of Welkom
Flamingo conservation project: Harmony has entered into a memorandum of understanding with BirdLife South Africa to design
conservation measures for the Lesser Flamingo in the Welkom district. Subsequently the partnership with BirdLife South Africa has
grown, by undertaking a project to determine the suitability of the identified sites to build a breeding island for flamingos. Various
community engagements will be undertaken to garner support for the project, which can not only benefit conservation of the
flamingo, but can also promote tourism and possibly employment in the region identified
Although Hidden Valley is not located in a biodiversity-protected area, five species on the International Union for Conservation of
Nature Red Data List occur in the vicinity of the mine. There is no evidence that the mine has affected this critical habitat. These
five species include the vulnerable tree kangaroo (Dendrolagus dorianus), an endangered species of tree kangaroo (Dendrolagus
goodfellowi), the vulnerable nectar bat (Syconycteris hobbit), the vulnerable harpy eagle (Harpyopsis novaeguineae) and the critically
endangered long-beaked echidna (Zaglossus bruijni).
Radiation has a health impact – a result of ingestion or prolonged exposure – and an environmental impact, given its extreme
longevity and ability to sterilise affected areas. Licensing that demonstrates responsibility with regard to health, safety and
environmental perspectives is required for each site from the National Nuclear Regulator. Site-specific gamma energy surveys
are conducted at the decommissioned sites. Land clearance surveys are conducted on all land released into the public domain.
Public safety assessments are being updated and will be submitted to the National Nuclear Regulator by March 2016. These
assessments are based on specialist studies of human behaviour, as well as the quality of air and groundwater.
Although radiation presents a low-level risk at our mining operations, it is nevertheless effectively planned for and managed.
Spills are reported to the regulators and cleaned up, and close-out reports are then submitted to the National Nuclear Regulator.
Access control and signage is in place around process water dams and tailings dams to warn members of the public not to enter
these areas.
In 2009, Harmony implemented a radiation quality management system, which complies fully with the requirements of the National
Nuclear Regulator and, because it is ISO 9001-based, it requires continuous inspection. The quality systems audit conducted in
2015 confirmed that Harmony was 100% compliant regarding its management system for the third consecutive year.
Surface radiation is managed by reducing the extent of affected areas, especially at legacy sites, in line with legal compliance,
and by reducing our environmental liabilities. Radiological clearance surveys are conducted at decommissioned sites. Radiological
clearance reports are compiled and submitted to the National Nuclear Regulator to ensure the future declassification of these
areas. A closure report for the area surrounding Eland shaft has been submitted to the National Nuclear Regulator.
Rehabilitation has been prioritised at the joint metallurgical services site in the Free State. Rehabilitation is also paramount at the
decommissioned shafts in the Free State and at Kusasalethu’s Deelkraal section.
Harmony’s proposed rehabilitation methodology – which includes the use of phytoremediation – is supported by the Department
of Mineral Resources and the National Nuclear Regulator. Phytoremediation involves the use of certain plants (these have been
tested) to absorb radioactivity and our pollution sources from the ground into the plant structure. The harvested plants are
disposed of at the tailings dam where the uranium and pollutants are consolidated. In this way, the pollution is removed
without harm or wastage of the topsoil. Phytoremediation is more environment-friendly than traditional radiation rehabilitation
methodologies, which require the removal of large volumes of topsoil and sub-soils, and create large cavities and further
environmental deterioration. Phytoremediation has been used successfully in the Chernobyl area in the Ukraine.
Harmony in action
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116  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Rehabilitation and closure
Land management (ha)
Mining right
to date
in FY15
Kusasalethu and Deelkraal
5 605
African Rainbow Minerals Gold shafts (1, 2, 3, 4, 6 and 7)
5 980
Joel (1 and 2)
2 162
Target (1, 2 and 3)
4 327
President Steyn South (Steyn 1, 2 and plant)
1 847
President Steyn North (Steyn 7 and 9)
1 651
Virginia, Masimong, Saaiplaas, Unisel, Merriespruit, Harmony and Brand
22 583
3 349
Bambanani, Joint Metallurgical Services, Harmony One plant
2 356
1 346
Eland, Kudu, Sable, Nyala, Tshepong, Phakisa, Western Holdings 5
10 799
1 580
St. Helena 2, 4, and 8
4 912
St. Helena 10
Papua New Guinea
4 098
69 160
Only a small proportion of the land (15%) we manage has been disturbed by mining. Given that much of the affected land is in
use, the opportunities for progressive and concurrent rehabilitation are limited. In FY15, the total rehabilitation liability for our South
African operations was R2.21 billion (FY14: R2.2 billion). Harmony’s rehabilitation liabilities are fully funded in advance by means of
trust funds, insurance guarantees and bank guarantees.
Rehabilitation of our decommissioned operations in the Free State and at Kusasalethu’s Deelkraal section in Gauteng province started
in FY10 with the aim of reducing our environmental liabilities, eliminating potential safety and health exposures, and working with
provincial authorities to meet socio-economic imperatives. Sites which have been demolished during the course of this year include
African Rainbow Minerals Gold 4 shaft, Brand 3 shaft and Brand Main Office complex, Harmony 1 ventilation shaft, continued
demolition of the decommissioned Steyn gold plant and finalisation of the Deelkraal shaft. In addition Harmony’s bio-energy project
in the Free State province has also assisted in reducing the environmental liability. Areas currently being demolished include Steyn
gold plant, Saaiplaas 3 shaft, St Helena 4 hostel, St Helena 8 and 10 shafts and Brand 5 shaft.
The total number of shafts demolished to date is 32 (including ventilation shafts with many defunct workshops and hostels also
having been demolished).
During the year, while rehabilitating the Brand 1A shaft near Welkom in the Free State province, an explosion took place which
caused damaged to local houses and businesses. No one was seriously injured as a result of the accident. For more information,
please refer to page 64 in the Safety and Health section of this report.
This rehabilitation programme reduced our closure liability by R21 million in FY15 and provided employment for at least 100 local
residents in FY15.
In Papua New Guinea, land clearing for mining and processing operations is closely managed by permits issued by the environment
and community affairs departments. The high altitude and extremely rugged terrain and heavy rainfall result in very high levels of
surface water run-off, which makes it extremely challenging to rehabilitate cleared surfaces. In addition, Hidden Valley and Golpu
are in a geologically active zone and experience frequent earthquakes and landslides. Steep surface rehabilitation is a dangerous and
high-risk activity. Staff are specially trained and use special equipment to rehabilitate steep slopes.
The joint venture partners have compiled a template and guide for the preparation of a closure plan and the associated costs, which
was completed in the fourth quarter of FY15. Site personnel will prepare a revised closure cost, using this guide, and submit the
closure plan and costs to the owners and a third-party auditor for review and agreement. Operational staff will play a greater role in
the preparation of the revised closure plan and associated cost estimate.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  117
Relevant Global Reporting Initiative indicators: G4-EN22, G4-EN23, G4-EN24 and MM3
Harmony’s mining and processing operations generate mineral and non-mineral waste. The effective management of waste is a
priority as this can reduce our environmental impacts and mitigate our environmental liabilities. We understand the actual cost of
waste management, and this assists us in planning for new projects and mine closure. As part of this process, we maximise recycling
and waste reduction during the life of a mine and design for waste minimisation and mineral waste reclamation (such as waste rock
from dumps as aggregate) so as to minimise our total mining environmental footprint.
Internally developed mineral, non-mineral and hazardous waste materials guidelines are included in the environmental management
systems which are implemented at all of Harmony’s operations. At Harmony, we understand that waste management begins with
waste’s initial generation and encompasses its handling, storage and transport as well as its recycling, treatment and/or disposal.
Our primary sources of mineral and non-mineral waste are:
The tailings accumulated in tailings storage facilities, which may be active or dormant. These facilities are large areas usually located in
a natural hollow, valley or an embankment used to provide safe, permanent storage of tailings material. In the tailings storage facilities,
the finely ground rock and water that together make up tailings will separate. About 35% of tailings are solids that will settle. The
balance is water that accumulates on the surface to form a tailings pond. Tailings ponds provide an important water source for mine
operations. Tailings water is usually pumped back to the mill to be re-used in the milling process. Tailings consist of overburden rock
which is made up of soil, gravel and other loose materials that cover the surface of a mine site, ore which is rock that contains high
concentrations of minerals such as gold, molybdenum and silver and mine rock which is solid material removed from an open pit.
The design and management of tailings storage facilities are subject to rigorous regulation and are factored into our environmental
management plans. A large number of our dormant tailings storage facilities were acquired as part of various transactions by Harmony
over many years, and were not necessarily established by Harmony
Material accumulated in waste rock dumps. Overburden or waste rocks are both a product of drilling and blasting, and are
transported to these dumps. The waste rock dumps are man-made surface dumps located near a mine, where development rock
which does not contain valuable minerals and which had to be removed from the mine has been deposited. Waste rock dumps
may be re-used as construction material, subject to the approval of the National Nuclear Regulator – this approval is necessary
specifically for road construction
Scrap steel – this steel has been reclaimed in the rehabilitation exercise being undertaken at the shafts which have been
decommissioned in the Free State and at Deelkraal. Decontaminated steel is sold for recycling to scrap dealers authorised by the
National Nuclear Regulator and in accordance with its procedures regarding decontamination, the monitoring of radioactivity and
the final release of the material
Scrap timber – this originates from timber that has been in use as support in the underground stopes. All timber supplied to
Harmony is certified by the Forest Stewardship Council which assures forest rotation in South Africa. As part of our bio-energy
programme, we will be looking into introducing the timber and wood chips into our bio-energy plant
Accumulated tailings in tailings storage facilities
(active and dormant)
1 400 273
1 382 178
1 359 770
1 433 760
6 039
Accumulated waste rock dumps
196 692
190 128
169 115
165 0852
82 751
Scrap steel
Data for FY11 for Papua New Guinea only
New reporting indicator for South Africa from FY12, FY13 onwards with consolidated group data being reported
Mineral waste
Tailings are made up of crushed rock and process water emitted from the gold elution process in the form of a slurry once the gold
has been extracted. The composition, size and consistency of tailings vary by operation, with the opencast operations producing
greater volumes of tailings in general than the underground operations. Tailings and waste rock are usually inert, but rock close to
the ore body may be associated with radiation or salts if these are characteristic of the ore body.
Since tailings do contain impurities or pollutants, in terms of our water management programme, they are placed on an engineered
tailings dam to contain the slime. The fines are also collected and deposited on the tailings. Water is collected from the toe drains
and penstocks and is channelled to the return water dam where it is available to be re-used by the plant.
Harmony in action
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118  Harmony Gold Mining Company Limited Integrated Annual Report 2015
In the process, the cyanide present is destroyed – it self-destructs on the tailings when exposed to light – but salts and heavy metals
can enter into ground water and create a pollution plume. We monitor our groundwater to ensure that such pollution plumes are
contained. The public safety assessments have illustrated that such plumes (radionuclide contaminant plumes) will in all likelihood be
contained in the tailings storage or water management facilities for hundreds to thousands of years and that the potential polluted
plumes originating from the tailings storage facilities will only travel between 10m and 100m from these facilities in a 10 000-
year period.
Effective mineral waste management not only reduces the aesthetic and land use challenges of mining, particularly during closure,
but also reduces the potential for water and air pollution as well as maximising the recovery of ore, minerals and metals. Improved
mineral waste management can result in significant savings and a reduction in energy consumption. Residual economic value can be
generated from projects such as our Phoenix reclamation initiative.
Mineral waste has a significant impact on land. At Harmony, all chemically reactive or radioactive waste is appropriately handled so
as to protect employees, communities and the environment.
Harmony manages the environmental impacts of mineral waste by:
Minimising the quantity of material stored so as to limit the extent of the footprint of land disturbed
Ensuring storage sites are physically and chemically safe, and well-engineered
Undertaking progressive rehabilitation – returning affected land to productive use after mining
In Papua New Guinea a waste rock management plan, including acid rock drainage management strategies, was submitted to the
Conservation and Environment Protection Authority for review and approval.
Hidden Valley’s advanced waste management systems have generated positive feedback from stakeholders particularly the tailings
storage facility which is the first large tailings storage facility to be operated successfully in Papua New Guinea. The review of the
laws relating to management and disposal of tailings is now on an indefinite hold and the regulatory focus of the Mining Policy and
Geohazard Department is on completing the revised Mining Policy, Act and related new regulations approved in 2015.
In FY15, 24.7Mt of mineral waste were generated from gold production (FY14: 33.5Mt), comprising 6.6Mt of waste rock and
18.1Mt of tailings (FY14:12.8Mt waste; 20.7Mt tailings).
Non-mineral waste
Non-mineral waste – such as plastics, steel, paper and timber – is generated by processing operations and is produced in smaller
volumes than mineral waste. This waste is managed by recycling, off-site treatments, disposal or on-site landfills. The impacts of
non-mineral waste can be reduced by recycling and re-using where possible. Harmony ensures the responsible storage, treatment
and disposal of non-mineral waste.
Group environmental standards for non-mineral waste management have been rolled out throughout the group and are currently
being integrated into existing ISO 14001 systems.
In FY15, 9 059 tonnes of waste (plastic, steel, wood and paper) were recycled (FY14: 7 892 tonnes), generating R5.2 million
(FY14: R8.3 million).
Relevant Global Reporting Initiative indicators: G4-EN22
Total expenditure by Harmony on its environmental portfolio in FY15 was R64 million, of which R34 million was spent in South
Africa and R30 million in Papua New Guinea (FY14: R68 million, R34 million in South Africa and R34 million in Papua New Guinea).
The total FY16 operational budget for the environment in Hidden Valley is R30 million (US$2.6million) (PNGK6 981 048). In addition,
R30 million (US$2.6million) has been committed to the implementation of the bio-energy initiative over the next two years.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  119
We continue to pursue our five-year environmental objectives:
Group aggregate targets FY14 – FY18
Baseline FY13
Reduce amount of water used for primary activities
(intensity and absolute) by 4.5%
Absolute: 18 556ML
Intensity: 1.01m3/t
Absolute: 14 614ML
Intensity: 0.81m3/t
Absolute: 16 495ML
Intensity: 0.88m3/t
Total environmental legal compliance
0 fines
1 fine
0 fines
Improve on percentage of water recycled (intensity and
absolute) by 5%
Implementation of 80% of biodiversity action plans
All operations have
biodiversity action
All operations have
biodiversity action
All operations have
biodiversity action
Reduce land available for rehabilitation by 2%
9 948ha
9 454ha
9 416ha
Baseline FY08
Reduce absolute electricity consumption by 3%
4 422 000MWh
2 667 375MWh
2 816 443MWh
Reduce intensity of electricity consumption (MWh/t
treated) by 2%
Reduce total carbon emissions by 3%
5 343 000t CO2e
3 439 536t CO2e
3 481 278t CO2e
Reduce carbon emission intensity (CO2/t treated) by 2%
0.3t CO2e/t
0.19t CO2e/t
0.18t CO2e/t
Harmony in action
Solar geysers in Slovoville near Doornkop
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120  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Measured in terms of fatalities, best safety performance
recorded in 14 years
Bambanani currently the lowest cost underground mine
with an all-in sustaining cost of less than US$800/oz for
FY15, with the highest underground recovered grade in
South Africa of 12.70g/t
Kusasalethu successfully restructured to ensure its return to
Productivity for our South African operations improved
by 8% for in-service employees and contractors to
43.6 tonnes per individual in FY15 (FY14: 40.3)
Underground grade stable at 4.75g/t for the year
To increase margins in lower gold price environment
through on-going operational restructuring
Balancing union wage demands with a call to preserve jobs
and ensuring the sustainability of our business
Improving mining discipline
Improving delivery in line with operational targets
To further improve productivity
Keeping pace with an inflationary environment
Improving Hidden Valley’s performance to increase
profitability and extend the mine’s life
Gold mining and gold production are central to Harmony’s existence. Maintaining and growing our margins as efficiently as we can
is essential to sustaining our business and meeting our strategic objectives. This includes delivering safely on our operational plans,
reducing costs, improving productivity and maximising revenue.
Our approach takes into consideration the long-term sustainability of the company as a whole. In the current environment of high-
cost inflation and lower gold prices, we aim to mine those areas which will return cash flow sooner and to delay major capital
expenditure (although not at the expense of safety or future viability).
By sustaining the company as a whole, we are able to pay salaries and wages to the people we employ, taxes to the national fiscus
and dividends to our shareholders, to continue to be an effective and responsible custodian of the environment and to give back to
the communities in which we operate.
The revenue we generate and ultimately the profit we make are determined by the price received for the gold we sell, and this is
determined principally by the prevailing gold price measured in US dollars on world markets. Furthermore, the prices received in our
operational and functional currencies – the South Africa rand and the Papua New Guinea kina which affect 91% and 9% of our
production respectively – are governed by the prevailing exchange rates in terms of the US dollar. The kina is our functional currency
in Papua New Guinea and these values are in turn converted into rands, Harmony’s presentation currency.
We are price takers and have no influence on the gold price or exchange rates. However, in most cases the effect of a lower US dollar
gold price is mitigated by a decline in the exchange rate of the rand and/or kina versus the US dollar, which increases the rand price
and/or kina price received per ounce of gold. The contra-cyclical behaviour of the US dollar price of gold and the rand-US dollar and
kina-US dollar exchange rate often work to our advantage.
In line with our strategy to increase our margins, Target 3 was closed in October 2014 and Kusasalethu, Doornkop, Masimong and
Hidden Valley were all restructured to return these mines to profitability.
Gold production was 8% lower year on year at 1.08Moz, due largely to the closure of the unprofitable Target 3 operation and a
significant reduction in gold production at Kusasalethu and Hidden Valley during the year.
Inflationary pressures continue to weigh heavily on our margins and during the year we persisted with efforts to reduce costs and
restructure our operations for profitability. Despite increases, especially in power and labour costs, cash operating costs in rand terms
increased by just 3% year on year (7% decrease in US dollars). Owing to the reduction in gold production, however, cash operating
costs increased by 12% in terms of rands per kilogram and by 1.5% in terms of US dollars per ounce.
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  121
The graph below illustrates our success to date with regard to fighting inflationary electricity price increases. Although Eskom has
imposed an 81% cumulative price increase since FY12, we have saved 13% on power usage in the past four years, which, combined
with improved scheduling of consumption, has limited the increase in Harmony’s electricity costs to 23%.
Our people are our biggest asset and maintaining good employee relations is essential to the sustainability of our company. Our focus
is on creating an environment in which our employees can strive, be efficient and productive. Various wellness and communication
initiatives are embedded in our culture. For more detailed information on engagement with our employees and their performance,
please refer to the Employees and Communities section in this report on page 78, as well as the Health and Safety section on page 65.
Our focus is on producing profitable ounces, safely. Although some operations managed to achieve their plans, under-performance
at some of our biggest mines – such as Kusasalethu, Doornkop and Hidden Valley – resulted in our overall production results for the
year being very disappointing.
The average US dollar gold price received in FY15 was US$1 222/oz compared with US$1 299/oz in FY14, a decline of 6%. During
FY15 the rand weakened 11% against the US dollar, from R10.35 in FY14 to R11.45, resulting in a 4% increase in the rand gold
price received from R432 165/kg to R449 570/kg.
At year-end, our all-in sustaining cost was R458 626/kg, compared with R413 433/kg in FY14, while the all-in sustaining cost in
US dollar terms remained stable at US$1 246/oz year on year.
Our translated costs in US dollars are very sensitive to the exchange rate of the rand and other currencies in terms of the US dollar.
The primary reason for the cost remaining stable in US dollar terms is the weakening of the rand against the US dollar in FY15.
Amounts are translated from rands to US dollars at an average of R11.45 for FY15 (FY14: R10.35 and FY13: R8.82).
The major challenges faced during the year and their respective mitigation plans were:
Safety: Safety is Harmony’s key priority. Our various safety initiatives – see page 61 – assisted in reducing the number of accidents
at all of our mines. Regrettably, we did have nine fatalities (FY14: 22 fatalities) at our operations during FY15. The fatalities,
together with the Section 54/55 notices issued by the Department of Mineral Resources to stop operations until they were
declared safe, resulted in an estimated production loss of 588kg (18 905oz). We had seven underground fires during the year
(four fires at Kusasalethu, two at Masimong and one at Doornkop), with no loss of life or serious reportable incident – proof that
our employees are more safety conscious. We lost about 200kg (6 430oz) in total during the year due to stoppages as a result of
fires. For more detailed information on our safety performance, please refer to the section on Health and Safety (page 58) in this
Infrastructure and equipment failure: Infrastructure and equipment maintenance remains a daily focus at all our mines. The
majority of the infrastructure problems experienced at Kusasalethu in FY14 were resolved during FY15. At the South African mines
the senior engineering capacity, safety management and operational risk management were enhanced.
Electricity consumption vs cost
2 500
2 600
2 700
2 800
2 900
3 000
3 100
3 013
2 664
2 756
2 608
1 200
1 300
1 400
1 500
1 600
1 700
1 800
1 900
2 000
2 100
2 200
Electricity consumption South Africa (GWh)
Electricity cost South Africa (Rm)
Harmony in action
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122  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Managing operational risks: While the management of operational risks is integral to the management of our business, we need
to improve our execution. Gold mining is a value chain that can only be optimised if a risk management plan is in place and all
supporting systems are functioning efficiently. Managing risks effectively while working safely and being pro-active are core to our
success. Safety hazards and operational business risks are identified and dealt with continuously at each of our operations.
Achieving our operational plans: Bambanani achieved its FY15 plan while Tshepong, Target 1, Joel, Phakisa, Unisel, Phoenix,
Kalgold and surface sources came closer to achieving their plans for FY15. In preparing our plans for FY16, our emphasis was on
matching the capital and human resources required with the production profile and profitability. We also plan for year on year
improvements by removing bottlenecks, optimising development and being profitable.
Increasing recovered grades remains a key objective. The closure of loss-making mining sections at Kusasalethu will have a
positive effect on the overall grade in FY16. The average underground grade recovered for the year remained stable at 4.75g/t
compared to 4.77g/t in FY14.
Productivity: Enhancing productivity of our workforce has involved its restructuring and streamlining. A more pro-active approach
to healthcare has assisted in reducing the high levels of absenteeism and sick leave taken from 8.90% to 8.05%. Healthcare is
decentralised and therefore employees have access to primary healthcare services on site (health hubs). As high blood pressure is
one of our most serious healthcare concerns, the localised health hubs enable us to better monitor employee health and treatment
programmes. This too has contributed to improved health levels and less absenteeism. For more information, please refer to the
section on Safety and Health on page 65.

The benefits of a healthier workforce are reflected in improved productivity rates at year-end, with overall productivity per in-service
employee including contractors of 43.6 tonnes per individual (FY14: 40.3). Harmony’s underground productivity figures regressed
slightly, from 91.49g/total employee per month costed in FY14 to 89.1g/total employee per month costed for FY15. Productivity at
Hidden Valley in Papua New Guinea was reported at 228g/total employee costed (FY14: 277g/total employee costed).

Employees qualify for various bonuses based mainly on safety performance, and tonnes and grades mined – all in an effort to
increase productivity.
Bambanani underground
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  123
Relevant Global Reporting Initiative indicators: G4-EC7 and G4-EC8
Our approach towards our FY16 operational planning:
Harmony’s management is devoted to improving the company’s operational performance. Our values are entrenched in everything
we do – safety, accountability, achievement, being connected and honest – and they inform our decisions and our actions. Realistic
planning supports our strategy to optimise assets – our ore bodies, our infrastructure and our people. This will ensure safer, more
profitable production.
Highlights of what we expect for FY16:
All operations to be profitable by the end of the financial year
An increase in both total production and underground recovered grade
Bambanani to remain the most profitable operation in the group and in South Africa as a whole
Kusasalethu to return to profitability by focusing on high grade areas, reducing its electricity usage and splitting reef and waste
tonnes going forward
Phakisa to be profitable by the end of FY16 and will build up production by increasing volumes while grades will remain stable
Joel to be marginally cash flow positive, given capital required to develop decline shaft
Tshepong’s production to improve due to higher volumes and a higher recovered grade
Masimong to be profitable with a shorter life of mine, following restructuring
Doornkop to generate profits later in FY16 post its restructuring
Hidden Valley’s restructuring should yield a profitable outcome in FY16
Our guidance per operation for FY16 is provided in the tables below:
Cost and capital
Cost and capital
Life of mine
170 000 – 190 000
410 000 – 440 000
90 000 – 110 000
450 000 – 490 000
120 000 – 140 000
425 000 – 450 000
Target 1
110 000 – 130 000
410 000 – 440 000
80 000 – 100 000
260 000 – 300 000
70 000 – 90 000
440 000 – 460 000
65 000 – 80 000
420 000 – 455 000
45 000 – 55 000
430 000 – 465 000
60 000 – 75 000
410 000 – 440 000
Underground operations
810 000 – 970 000
425 000 – 450 000
Hidden Valley
80 000 – 95 000
395 000 – 425 000
3 – 6
Various surface
50 000 – 55 000
410 000 – 445 000
30 000 – 40 000
420 000 – 450 000
~ 1.1Moz
~ R435 000/kg
~ US$1 080/oz*
* An exchange rate of R12.50/US$ was used
Our FY16 annual production guidance is aimed at increasing margins. Harmony’s strategic plans are based on a gold price of
R450 000/kg (or US$1 230/oz) and an exchange rate of R11.38/US$).
Our target is to produce 1.1Moz at a total cost, including capital, of R435 000/kg (US$1 080/oz*).
Harmony in action
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124 Harmony Gold Mining Company Limited Integrated Annual Report 2015
Our planned capital expenditure will be spent in line with our strategy. The breakdown of the capital expenditure per operation is
outlined below:
Capital expenditure
FY15 (R million)
FY16 – forecast (R million)
Target 1
Target 3
Underground operations
1 522
2 298
1 368
1 954
Hidden Valley
Various surface
Total R million
1 597
2 470
1 439
2 139
Exchange rate (R/US$)
Total US$ million
We continue to mine in line with our reserve grades – except at Phakisa, which is still in build-up phase, and at Kusasalethu, which
should be mined more in line with its reserve grade following the mine’s restructuring.
grade (g/t)
achieved in
% of
achieved in
Target 1
Underground operations
  Not yet achieved (below 80%)
  Close to target grade (80 to 90%)
  Achieved target grade (90% plus)
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Harmony Gold Mining Company Limited Integrated Annual Report 2015  125
Fatality injury frequency rate
Harmony total
Lost-time injury frequency rate
Harmony total
Target 1
Hidden Valley
Target 3
FY15 Contribution to
production by operation (%)
Harmony in action
Tshepong headgear
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126  Harmony Gold Mining Company Limited Integrated Annual Report 2015
Number of employees
– Permanent
1 517
1 584
1 190
– Contractors
1 847
2 028
1 642
Volumes milled
(000t) (metric)
(000t) (imperial)
Gold produced
2 908
2 576
1 606
93 495
82 821
51 635
Gold sold
2 947
2 567
1 591
94 748
82 530
51 152
Development results
Total metres
1 150.3
1 092
Reef metres
Capital metres
1 330
1 111
Average gold price received
451 200
432 706
450 933
1 226
1 300
1 590
Cash operating cost