HomeGoldElandsrand to produce 15% more in FY 2010

Elandsrand to produce 15% more in FY 2010

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Johannesburg, South Africa — MININGREVIEW.COM — 22 February 2010 – Harmony Gold Mining “’  the world’s No. 5 gold producer “’ has revealed that its Elandsrand mine is expected to produce 15% more gold this financial year, following a revamp of the struggling operation.

In a statement released here, the company said that production at the mine “’ which has fallen short of output targets, mainly due to several safety-related closures “’ would rise to 200 000 oz this year, and grow to 280 000 ounces by 2012.

It added that the mine “’ where some 3 200 workers were trapped underground for over a day in October 2007 “’ would hit peak output at 310 000 ounces in 2013, following a R1.1 billion expansion.

Reuters reports that Elandsrand is due to be renamed Kusasalethu “’ a Zulu word meaning "our future" “’ this week.

Harmony chief operating officer for the region Alwyn Pretorius said the mine had been deepened and its technology and safety measures improved. There had been five fatal accidents at Elandsrand in the 2009 financial year.

“Elandsrand “’ acquired from bigger rival AngloGold Ashanti in 1978 “’ has extended its mine life to 2037,” Pretorius added.

“This mine will become the single biggest mine in Harmony,” he said, adding that this would become a reality by 2013.

The mine’s improvement is part of a wider plan to push Harmony’s production target to 2.2 million ounces a year by 2012.

In the 2009 financial year Elandsrand contributed 12% to the company’s gold production of 1.5 million ounces.