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Kusasalethu mine, South Africa

27th September 2013

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Kusasalethu mine, South Africa.

Client
Harmony Gold Mining Company.

Harmony acquired Kusasalethu in February 2001 and continued with the shaft-deepening project that was under way at the time to exploit the western high-grade block by accessing four additional production levels, 102, 105, 109 and 113, while mining the Ventersdorp Contact Reef (VCR)
in the upper levels of the mine.

Project Description
The operation comprises a twin vertical and a twin subvertical shaft system.

The subvertical shafts, which access the deeper parts of the VCR, have been extended to a depth of 3 600 m through the Kusasalethu shaft-deepening project. Mining is conducted using conventional mining methods in a sequential grid layout.

As at June 30, 2011, total proven and probable reserves were 33.8-million tons, with a grade of 6.61 g/t gold.

Value
Not stated.

Duration
Not stated.

Latest Developments
The project has been completed.

In the year ended June 30, Kusasalethu produced 2 740 kg of gold, 2 893 kg less than in the previous financial year, owing to labour unrest and a temporary closure of the mine, as a result of safety and security reasons at the end of the 2012 calendar year .

With the re-opening of the mine, Harmony signed a watershed agreement with Kusasalethu labour in February 2013.

The phased re-opening process of employees returning to Kusasalethu
after its temporary closure was concluded in April 2013. Every employee signed the code of conduct, received training on the guarantees and undertakings agreed to in the agreement and underwent health and safety inductions.

The labour disruptions at Kusasalethu cost Harmony an estimated R1.2-billion.

At the end of the June 2013 quarter, Kusasalethu’s daily production has returned to the same levels prior to the labour disruptions.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Harmony investor relations manager Henrika Basterfield, tel +27 11 411 2314, fax +27 11 692 3879 or email henrika@harmony.co.za.

Edited by Creamer Media Reporter

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