Can you provide a brief history of Harmony in South Africa?

Certainly. Harmony has a rich history of over 70 years in operation. We are listed on both the Johannesburg Stock Exchange (JSE) and the New York Stock Exchange (NYSE) and have emerged as the largest gold producer in South Africa in terms of volume. We began as a single mining operation and steadily expanded, acquiring South African operations nearing the end of their lifespan. Through recapitalization and efficient mining practices, we transformed into an independent, world-class gold producer and the leading gold mining company in South Africa. This growth has enabled us to create a sustainable company that benefits various stakeholders. Additionally, we have expanded internationally and currently operate an open pit mine at Hidden Valley in Papua New Guinea (PNG). We also hold a 50% stake in the Wafi-Golpu copper-gold project, which is considered a Tier-1 copper-gold project in PNG.

How does Harmony utilize technology and automation to address the challenges faced in deep-level underground gold mines?

Safety is our top priority at Harmony, and we have implemented several technological initiatives to ensure the well-being of our employees. We have digitized safety reports to promptly communicate seismicity issues to our teams. Electronic winch signalling and locomotive driving information systems have been implemented, and automated Wi-Fi networks allow us to track the whereabouts of our personnel, monitor no-go zones, and quickly detect and locate any missing workers.

Cooling is critical in deep-level mining, and we have made significant investments to optimize our cooling capabilities through electricity improvements and automation technologies. We are also utilizing digital twins for simulation purposes to enhance efficiency in the depths of our mining operations. Our long-term goal is to remotely undertake as many activities as possible with the use of hydroelectric machines. Additionally, we are exploring alternative energy sources, such as solar power, to reduce our reliance on compressed air, which is noisy and inefficient.

What are your plans for the tailings retreatment of Mine Waste Solutions acquired from AngloGold Ashanti?

Mine Waste Solutions has the capacity to recover approximately 100,000 ounces of gold per year. We believe that by opening another circuit, we can increase the recovery potential even further. With our extensive tailings facilities, we have plans to expand our tailings retreatment capabilities. Converting a plant into a tailings retreatment facility is a significant financial investment, but it offers attractive returns. This business model has not only improved our emissions, water, and electricity intensities but has also reduced the overall risk profile of our asset portfolio.

What exploration activities are in the pipeline for Harmony in South Africa?

We have several ongoing exploration projects in South Africa, with notable ones including the expansions of our Target North mine and Kalgold. At Target North, we have initiated an exploration program to confirm the geological model and further define a potential block of well mineralized Ventersdorp Contact Reef. Surface exploration drilling has already produced promising results, and deflection drilling is currently underway, with plans for further ramping up in 2022. Additionally, we hold a large tenement at Kalgold mine, and drilling is in progress to assess the feasibility of expanding this open-pit operation.

How would you describe the overall health of the South African mining industry?

The South African mining industry has faced its share of challenges, but there is a sense of optimism and positivity surrounding the sector, especially under the leadership of our current President and the Minister of Mineral Resources and Energy. We believe that we are on the right path to revitalize the industry. Stability is crucial for the Mining Charter, as constant changes create uncertainty and discourage investment. Therefore, stability clauses are imperative to foster a conducive environment for growth. The recent announcement by the President to lift the cap on self-generation of power is also a positive step, as it addresses existing electricity challenges and helps us achieve our environmental, social, and governance (ESG) targets while reducing costs.

What are Harmony’s growth strategy and goals for the next two years?

Our focus is on integrating our new assets into our portfolio, which we believe present excellent opportunities for extending the life of our mines. We are continuously seeking strategic investments and exploring potential merger and acquisition opportunities. The Wafi-Golpu project holds immense potential and will play a significant role in driving our growth aspirations, particularly in the copper-gold sector. We remain committed to sustainable and responsible mining practices as we strive to achieve our goals in the next two years.

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