01 Dec 2021
Harmony Gold is a global, sustainable gold producer creating shared value for all stakeholders while leaving a lasting positive legacy.
It has over 70 years’ gold mining experience in South Africa and almost two decades of operating in Papua New Guinea.
Harmony today
· 1.5Moz produced in financial year 2021
· 42.5Moz gold and gold equivalent Mineral Reserves
· South Africa – 9 underground operations
· Papua New Guinea – Hidden Valley (open pit mine), Wafi-Golpu project (50-50 JV), Multiple exploration areas
Key Focus Areas and Strategy
Harmony’s strategy is to produce safe, profitable ounces and improve margins through operational excellence and value-accretive acquisitions.
Harmony have been active in Papua New Guinea since 2004.
· Experienced explorer and operator in the Morobe Province, Highlands, Sandaun, and Hela
· Various exploration tenements in Morobe and Hela
· Core asset portfolio in PNG comprises:
– 50% joint venture ownership interest with Newcrest Mining in Wafi-Golpu project, a tier 1 copper-gold porphyry in the Morobe Province
– 100% ownership of Hidden Valley, an open-pit gold and silver mine achieving gold production of 150,755 oz this year
Wafi-Golpu project
· Applied for Special Mining Lease (SML) in 2016. Feasibility Study Update in 2018
· Estimated 28-year life of mine production post construction on current design
· Est. 1.4 million ounces per annum production
· Projected 1.27% copper, 0.9g/t gold grade
· Waste disposal method – deep sea tailings placement
· Environment Permit granted in December 2020
· Resumption of negotiations with State Negotiating team targeted for first quarter of 2022.
Paying significant royalties
· Hidden Valley Mine has paid an aggregage PGK174.3 million in royalties as of 30###sup/sup### June, 2021
· Since Harmony’s re-investment (2016 – 2021) PGKK82.5 million has been paid
Impact of COVID
COVID-19 Impacts and challenges include:
· Employee safety, health and morale
· Employee travel and staff rostering
· Productivity and profitability
Harmony entered into agreements with the Provincial Health Authority to assist with supplies, logistics, education assistance and information flow alongside access to vaccines.
Worked with local landowner company (NKW) to:
· Set up of major Entry Point Center screening facility in Lae
· Provide catering services at other facilities in Wau and Bulolo – investment of PGK36M