Harmony Gold (mining)

Harmony Gold Mining Co. Ltd.

Type Public

Traded as NYSE: HMY

Industry Gold

Headquarters Melrose Arch, South Africa

Patrice Motsepe (Chairman)

Graham Briggs (CEO)
Key people
Ferdinand Dippenaar
Bob Atkinson

Revenue $1.18 billion USD

Number of employees N/A

Website www.harmony.co.za

Harmony Gold is the third largest gold mining company in South Africa, the 12th largest in the world (2009)
and the 5th largest gold producer in the world.[1][2][3] Harmony and its subsidiaries conduct underground and
surface gold mining and related activities, including exploration, processing, smelting and refining. During the
fiscal year ended 8 October 2004 (fiscal 2004), the company processed approximately 33.955 million tons of ore
and sold 3,225,187 ounces (100,376.7 kg) of gold. It also has operations in Australia, Papua New Guinea and
Canada. The company owns a number of mines including Elandskraal mine and Phakisa Mine.

Strategy
Our aim is to be safe, highly profitable and generate the cash necessary to underpin the development of Golpu,
to be a sought-after investment, to be robust at any gold or copper price, to have a diverse risk portfolio (with
exposure to South Africa, Papua New Guinea, gold and copper) and to continue growing our quality ounces.

Our strategy for 2015 to 2020 is to improve our margins through safely delivering on our plans and increase free
cash flow through higher grades and cost control, retain a flexible balance sheet grow our value per share of our
Papua New Guinea assets and complete the Golpu studies as it is our intention to build the Golpu mine. We also
intend identifying acquisition opportunities of open pit mines and bulk projects.

VISION AND MISSION

Our Constitution has been put in place as a goal, promise and statement of intent to our members and the South
African mining industry alike.

Vision

To create, in partnership with key stakeholders, a conducive policy, legislative and operating environment that
facilitates a doubling of real mining investment in the mining sector by 2030. This will be a material positive
game changing outcome for achieving the country’s economic growth, developmental and transformation vision
as elucidated in the NDP.

Mission

To play a leadership role in enabling the mining sector to get back onto the front foot with the specific long term
purpose of creating an enabling environment for doubling real mining investment by 2030. The Chamber needs
to be the most capable and respected mining advocacy organisation that works in trust based problem solving
partnerships with key stakeholders to engineer this positive turnaround.

Corporate social investments:

 We recognise our role as part of the communities in which we operate and from which we draw our employees,
and we are committed to the sustainable socio-economic development and well-being of these communities. As
mining operations have a limited lifespan, our strategic objective is to remain relevant to mining and labour-
sending communities by contributing to community development that is sustainable long after mining operations
have ceased.

Our corporate social responsibility (CSR) policy (PDF - 34KB) for our South African operations recognises the
need for socio-economic development in the country, starting with the broader communities in which we
operate, as well as our labour-sending communities – Lesotho, Eastern Cape Province and Mozambique. This
policy includes local economic development (LED) initiatives executed in terms of the Mining Charter,
MPRDA regulations and codes of good practice for the minerals and mining industry.

Highlights
 Harmony’s social and labour plans constitute an investment of some R261 million (US$25 million) in
local economic development projects

 In FY14, Harmony spent R8.5 million on corporate social responsibility projects in South Africa

 Social and labour plans are currently in place for each mining right for the period 2013 to 2017

 Harmony has been in partnership with the South African Mathematics Foundation since 2005, to
improve mathematics performance through learner and teacher development

 41 water supply and sanitation projects have now been completed at Wafi, servicing 15 000 people

 Matriculation, vocational and university sponsorships for 46 students from Hidden Valley and Wafi-
Golpu landowning communities, totalling R0.4 million (US$ 38 815), were granted during FY14

 Work continues on expansion of the Women’s Development Programme

Material issues
 Maximising and maintaining benefits for our communities from the available budget

 Compliance – maintaining our licence to operate by developing corporate social responsibility, local
economic development and preferential procurement strategies that fulfil our role as a responsible corporate
citizen and, at a minimum, meet compliance standards

 Stakeholder engagement – building sound and responsive internal and external relationships in South
Africa and PNG