HomeGoldHarmony costs and production up

Harmony costs and production up

Tshepong mine
– one of Harmony’s
South African
Johannesburg, South Africa — MININGREVIEW.COM — 21 October 2008 – South Africa’s Harmony Gold Mining Company Limited (Harmony) – fifth largest gold producer in the world and third largestAfrican producer – reports that production in the fiscal first quarter through to 30 September 2008 expanded and costs increased.

CEO Graham Biggs says higher labour and power expenses were the main contributors to the gain in costs.

State-run power utility Eskom Holdings Ltd. raised tariffs 27.5% this year and reduced supplies to mines because of a capacity shortage. The annual inflation rate rose to a record 13.6% in August, and gold producers are trying to boost production to mitigate against rising costs.

Bloomberg New reports that Harmony – which is due to release fiscal first-quarter earnings on 30 October 2008 – reported a loss of US$$7 million (R71 million) in the previous three months, after writing down the value of assets.

“Conditions for the formation of a uranium venture will be met next week,” Briggs said in the presentation.

Harmony had expected preparations – including approval from the minister of minerals and energy – to be ready in the second quarter, according to a statement last December.