• BEE winners and losers

    Creating real change and real jobs requires a new ideology, says Gerhard Papenfus.

  • Governance matters

    Addressing risk well and timeously can be a source of growth, says Ian Mann.

  • Road to riches

    Taxpayers keep funding structures with big plans but who knows what efficacy, says Mandi Smallhorne.

Loading...
See More

Harmony to brief on troubled mine

Jan 07 2013 09:48 Reuters


Company Data

HARMONY GOLD MINING COMPANY LIMITED [JSE:HAR]

Last traded 21
Change 0
% Change 1
Cumulative volume 370893
Market cap 0

Last Updated: 31-03-2015 at 03:03. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Harmony delays reopening of Kusasalethu

Harmony mineworkers stage sit-in

Harmony mine output disrupted

Harmony surprises with sterling earnings

Harmony Gold nets R2.6bn profit

Harmony delays mine operations

 

Johannesburg - Harmony Gold Mining Company [JSE:HAR] will hold a briefing at 08:00 GMT on Monday on the outcome of a review of its troubled Kusasalethu mine, the scene of violent protests and an illegal strike last month. 

Harmony, SA's third largest gold producer, said last week it would delay the post-holiday restart of the mine as it was undertaking a review of its financial and operational status. 

The company could take a number of options including placing the mine under "care and maintenance", which would mean closing it for an indefinite time 

Such a move would hit Harmony's bottom line hard at a time when it needs cash to fund its huge Wafi-Golpu project in Papua New Guinea, analysts say. 

"This would be a blow to Harmony: Kusasalethu produced around 18% of Harmony's production profit in the September quarter. If they do put it on care and maintenance it will certainly disrupt their cash flow regarding Wafi-Golpu," said David Davis, mining investment analyst at SBG Securities. 

A brief underground sit-in was staged at Kusasalethu just before Christmas when 1 700 workers refused to surface to protest the suspension of colleagues who had taken part in an illegal strike. 

The suspensions also sparked violence on December 20 when several miners were injured by police firing rubber bullets to disperse a demonstration. In November, two miners were killed in clashes between rival unions. 

The unrest at Kusasalethu was the latest labour flare-up in South Africa's mining sector, which was battered last year by a wave of violent wildcat strikes that claimed around 50 lives. 

Harmony shares were flat at R71.50 in early trade.



 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

harmony gold mining company

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote

Loading...