The Doornkop shaft
“’ one of Harmony’s
South African
operations
 
Johannesburg, South Africa — MININGREVIEW.COM — 26 January 2010 – South African gold miner Harmony Gold Mining Company Limited “’ Africa’s third-largest producer of the precious metal “’ expects output to fall in the second quarter of 2010 compared with the first, but it is bullish about the gold price performance.

In a statement issued here Harmony said it had milled fewer ounces in its second quarter, which ran to December, after the gold grade had fallen, but rand per kilogram costs had risen due to lower output.

“The rand/kg gold price is likely to be sustained,” the company said in a presentation posted on its website.

Reuters reports that Harmony’s gold production for the first quarter had been 373 431 ounces “’ up 6% on the preceding quarter.

The company revealed that its cash operating costs had dropped, while electricity costs also fell due to no winter tariff charge by Eskom .

Harmony “’ which is developing the Hidden Valley project in Papua New Guinea with Australia’s Newcrest Mining Limited “’ said commissioning of the mine was continuing, and that it expected to reach commercial levels of production at the plant in the March 2010 quarter.

The gold producer will present its second-quarter results on 8 February.