Doornkop - Randfontein

Harmony Gold Mining Company regretfully announced that a conveyor belt accident at its Doornkop Plant yesterday resulted in the death of an employee.

Higher volumes milled from 74 000 tonnes to 126 000 tonnes and better recovery grade, resulted in 86.4% improved production from 184kg to 343kg. The recovery was also 9.2% higher at 2.72g/t from 2.49g/t for the period under review. Total costs at Doornkop were down by 50.2% at R148 157/kg compared with R297 293/kg. Costs for the quarter reflected an improvement in unit cost parameters as well as cash operating costs. The higher costs incurred in the March quarter are in part due to the low volumes milled as a result of the planned stoppage to complete shaft work. Doornkop’s Kimberley reef conventional section was stopped due to poor grade being experienced. Contrary to this, the South Reef operations experienced an increase in production with square metres mined improving 58% on the previous quarter. Further improvements could be expected in the September quarter. Station development continues on 205 and 207 levels with a total of 3 061 cubic metres excavated. Access development also continued on 192, 197 and 202 levels with 288m excavated. Secondary development is also underway on 192 and 197 levels with 407m achieved. Equipping of the loading station on 212 level is underway and is all that remains of the shaft-sinking programme. Construction of the pump station and loading levels is also underway following the completion of most of the excavations on 205, 207 and 212 levels. The updated schedule provides for the main shaft to be partially commissioned by July 2008.

Tonnages from Randfontein saw a marked improvement for the June quarter from 311 000 to 305 000 tonnes. Lack of flexibility and low grade areas as well as loss in face length on the high grade pillars impacted negatively on grade recovery. Recovery grade dropped to 4.88g/t from 4.91g/t, while kilograms produced reduced by 2.6%. Rand per kilogram costs were exceptionally higher at R155 266/kg from R117 253/kg previously. following an extensive drilling exploration programme, Harmony declared its uranium mineral resources, within the measured resource category. Five tailings dams in Randfontein delivered 360 million tonnes containing 79 million pounds of U3O8.