HomeGoldHarmony delays R6 billion shaft

Harmony delays R6 billion shaft

Harmony’s Evander
Johannesburg, South Africa — MININGREVIEW.COM — 27 August 2010 – Harmony Gold Mining Company “’ Africa’s third-largest gold miner “’ has revealed that it intends delaying development of a R6 billion shaft at its Evander mine in South Africa due to cash constraints.

CEO Graham Briggs said it would be difficult to obtain board approval for the project when other units of the gold producer were in the process of ramping up production. The group previously said that the new shaft would help increase output.

Earlier this month, Harmony said its total gold production for the quarter to 30 June had risen 4% from the previous quarter to 346 714 ounces, with total cash costs up to US$831 per ounce from US$829 per ounce in the previous three months.

“At the moment we have got no intention of proceeding with the Evander project,” Briggs told Reuters.

Harmony said in a document on its website that it was positioned to generate sufficient cash to fund growth and dividends, but it gave no further details.