Harmony to deliver green gold with help of green loan

12th July 2022

By: Martin Creamer

Creamer Media Editor


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JOHANNESBURG ( – Harmony Gold, which met its yearly production guidance in the 12 months to end June against strong odds, is continuing to “mine with purpose”, which includes leaving a cleaner and healthier planet.

Harmony CEO Peter Steenkamp said headwinds had again been turned into opportunities, with the “phenomenal grit and perseverance” displayed in financial year 2022 (FY22) placing the company in a “strong position” to create further value for all its stakeholders.

Delight was expressed about Phase 1 of the renewable energy programme being underway, along with the securing of a R1.5-billion green loan for the rollout of Phase 2, which is linked to being net-zero by 2045, de-risking operations and improving margins.

“Not only did we meet our annual production guidance, but we took a bold step forward on our decarbonisation journey, and finished this financial year on the front foot, confident and with good momentum,” stated Steenkamp, who expressed confidence that the company’s brownfield and greenfield project pipeline, alongside the renewable energy projects, would ensure continued value creation for shareholders and stakeholders.

The JSE-listed gold mining company described itself as managing costs aggressively while progressing key brownfield projects.

A comprehensive update on capital expenditure is scheduled to be released on August 30, as part of the presentation of FY22 financial results.

Regulatory approvals are in hand to proceed with the Kareerand tailings expansion project at Mine Waste Solutions, in the Vaal river area as the low-risk South African surface retreatment business continues to contribute meaningfully to production and cash flow.

Operational plans for FY23 include weighing up investment in lower-risk assets to be able to realise meaningful returns in the current economic environment.

Harmony’s risk-based approach to creating a sustainable company through responsible stewardship, operational excellence, value-accretive acquisitions and capital allocation has improved the quality of its portfolio and diversified its revenues across:

  • South African underground assets;
  • South African surface low-risk, high-margin, long-life assets; and
  • international Papua New Guinea (PNG) operations.

Harmony’s Hidden Valley mine, in PNG, has resumed full production after the overland belt failure in January 2022, with good prospects for FY23.

The negotiating team for the Wafi-Golpu Joint Venture engaging with the PNG State negotiating team for the special mining lease for the Tier 1 copper/gold Wafi-Golpu project, is hoping to reach an agreement soon.


The closure of Harmony’s over 50-year-old Bambanani mine, near Welkom in the Free State, has highlighted the company’s deployment of environment, social and governance, or ESG, principles as jobs were maintained and wealth distributed to the surrounding communities by extending its life-of-mine by more than 20 years. In the end it was seismic risk and safety taking precedence over production that eventually brought Bambanani to a close.

Job and skills retention will be brought about by highly skilled Bambanani crews being deployed elsewhere within the group.

The embrace of a culture of safety across all operations is underpinned by a humanistic approach integrated into an optical character recognition system, work note tool and missing person’s locator, to ensure that high-quality data, controls and the right safety culture are deployed across the group.

Changing the hearts, actions and minds of all employees to avoid complacency and proactively derisk is being emphasised to achieve zero harm.

“We have achieved some extraordinary safety milestones as a company and indeed as an industry,” Steeenkamp stated in a release to Mining Weekly.

Lower fall-of-ground and rail-linked incidents have resulted in more ‘white-flag’ accident-free days, and a first-ever January and February free of loss of life.

Vigilance, alertness and refusal to enter workplaces deemed to be unsafe are highlighting the company’s new safety journey marred by 13 FY22 fatalities.

“Loss-of-life prevention in the workplace remains our foremost priority and each such loss weighs heavily on our shoulders.

“Each person in Harmony is required to be a leader in safety. It’s up to each of us to influence one another and change our behaviour to avoid further tragedy and ensure no further lives are lost.

“I continue to believe that it is possible to conclude a year without any incidents,” said Steenkamp.

To ensure zero loss of life, accountability, honesty and connectedness are being linked to arriving at work energised with a duty to care.


Meeting yearly total production guidance of 1 480 000 oz to 1 560 000 oz by way of “grit and perseverance" boosted the de-risked diversified portfolio, business improvement initiatives and capital projects. It has helped to position the company well for the cultivation of talent and the development of skills required for the future.

“We have a duty to extract, preserve and look after the environment, leaving our children a cleaner, healthier planet. All of this can be summarised in the three words we at Harmony use consistently as part of our identity – mining with purpose,” Steenkamp emphasised.

Edited by Creamer Media Reporter


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