Our approach to illegal mining JSE: R184.50 +5.76% NYSE:$9.44 +5.01% GOLD:$2 688/oz +0.41% GOLD:R1 629 756/kg +0.09% USD:ZARR18.86 -0.31% At 12:59pm, 15 Jan 2025 Home » Sustainability » Social » Our approach to illegal mining Illegal mining poses several socio-economic challenges, including the safety of both our employees and the illegal miners, and our biodiversity and post-closure sustainability. Since 2016 in South Africa, illegal mining has decreased by 93.5%. Our performance in FY24 was driven by our efforts to curb illegal mining through proper mine closure and investments in security. Our security strategy and partnerships with private security companies, law enforcement, government departments and community members continue to significantly reduce illegal mining incidents at our South African operations, and assist to manage trespassing at Hidden Valley in Papua New Guinea. Illegal mining is not expected to pose material risks to our activities in Australia. In FY24: We invested R650 million in security measures at our mining operations (FY23: R609 million) Of this investment, R647 million was spent in South Africa and R3 million was spent in Papua New Guinea OUR APPROACH We adopt a security strategy with the aim to prevent incidents before they occur and protect our employees and assets. Our rigorous mine closure process also reduces the risk of illegal mining incidents. We aim to: Manage security at our operations Decrease the risk of illegal mining Protect our employees and communities Regional performance South Africa In South Africa, collaborate with private security and law enforcement agencies to curb illegal mining. Our efforts have yielded positive results so far. Our performance for FY24 was as follows: Mponeng operations: We have seen a significant decrease in on-site crime incidents, from monthly averages of 50 in 2022 to 20 in 2023 and 15 in 2024 Moab operations: Through the collaborative project IRIS, we recovered 57 illegal firearms and 8 500 rounds of ammunition, and dismantled illegal mining supply chains leading to 220 arrests. A major underground operation stocked with explosives and other illicit materials was dismantled. Kusasalethu Mine: Deelkraal shaft was closed due to illegal mining activity. Security operations resulted in the arrest of 101 illegal miners – tragically eight illegal miners were found deceased. Free State operations: Several incidents of trespassing took place involving fraudulent claims of municipal authorisation and without Harmony’s consent, with R496 390 worth of gold-bearing material seized – investigations and legal action are ongoing. Our strategy is strengthened by our collaboration with South African Police Services (SAPS) and a multidisciplinary national task team, comprising mining houses, the DMRE, the South African Revenue Service, Directorate for Priority Crime Investigation, the Department of Home Affairs and the National Prosecuting Authority. Papua New Guinea Hidden Valley employs comprehensive security measures including a K-9 unit and local police presence to combat trespassing and illegal mining. Security measures include drone surveillance, enhanced fencing, thermal cameras, and community engagement. Australia Unlike Hidden Valley and South African operations, illegal mining is not a significant concern at our Australian mining sites. FUTURE FOCUS AREAS Continued collaboration and partnerships with host communities, government and law enforcement is crucial to site security, together with ongoing reviews of the effectiveness of our safety and security measures.
