Company announcements

Harmony, Unions agree ground-breaking profitability plan to save jobs

May 18, 2010

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Johannesburg. Tuesday, 18 May 2010. Harmony Gold Mining Company Limited (Harmony) today announced a ground-breaking job preservation and profitability agreement with the National Union of Mineworkers (NUM), UASA and Solidarity in respect of restructuring at the company’s Virginia operations in the Free State.

In terms of the agreement, certain sections of the Virginia operations’ Merriespruit 1 shaft will continue to operate, provided:

• these sections do not make a loss (on a total cost basis, including any capital expenditure) for two consecutive months; and
• total costs remained under R250 000/kg.

Last month, Harmony announced – after an extensive review – its intention to close three loss-making shafts at the Virginia operations – Merriespruit 1 and 3, and Harmony 2. The company has since engaged with trade unions under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), in a bid to mitigate the effect of the closures on jobs.

Harmony CEO Graham Briggs said: “The innovative agreement announced today resulted from the process of engagement, and points to the excellent relationship between management and trade unions in the Free State.”

“All parties recognise that, to achieve the desired result – keeping one of the shafts operational and containing job losses to fewer than 1 000 – the agreed cost and profitability targets must be achieved through improved productivity. I believe there is a firm commitment to achieve success by everyone involved.”

For more details contact:

Esha Brijmohan
Investor Relations Officer
+27 (0)82 759 1775

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0)82 888 1242

Graham Briggs
Chief Executive Officer
+27 (0)83 265 0274