Harmony Gold has announced that it plans to cut its costs to R400,000 per kilogram of gold produced by both increasing productivity and reducing spending on equipment and exploration.

Graham Briggs, Harmony Gold CEO has said that none of the company’s operations, including the capital, will be more than R400,000 per kilogram, emphasising that increasing productivity is essential to achieving grade targets as well as mining higher-grade ore.

While Harmony Gold is South Africa’s third-biggest gold producer, with 10 underground mines in the country, its all-in sustaining costs dropped 14 percent to 404,694 rand per kilogram (2.2 pounds) in the three months ended 30 September 2013. The stock has declined 63 percent since the beginning of last year.