Harmony Gold Mining has unveiled plans to invest $410 million to extend the life of the Mponeng mine. This large mine, located east of Johannesburg, will be the focus of expansion and restructuring work scheduled to begin in mid-2025.
Renovation and restructuring of the Great Mine
This investment project is presented as a strategic response to the challenges facing the gold industry in South Africa. With gold production declining to less than one-fifth of its peak due to rising costs and the complexities associated with mining at greater depths, Harmony Gold Mining’s initiative aims to revitalize the industry and ensure its long-term sustainability.
In a recent financial report covering the period to December 2023, Harmony Gold has demonstrated exceptional performance. Group revenues increased by 35% to R31.41 billion (approximately US$2.02 billion).
Harmony Gold maintains sustained and profitable growth
In the first half of FY2024, Harmony continued its upward trajectory with a 14% increase in total gold production. Volume reached 25,889 kg (832,349 oz), compared to 22,809 kg (733,325 oz) for the same period last year. This growth translated into a significant 221% increase in earnings per share (EPS).
In April of last year, Harmony Gold together with Newcrest Mining established a memorandum of understanding (MOU) with Papua New Guinea to advance the development of the copper and gold project. This joint project, in which both companies have a 50% interest, consolidates the relationship between the two companies under a mining development contract. However, progress is subject to board approval and completion of regulatory processes.
However, while development of the project is pending approvals and permitsthe strategic vision of Harmony Gold Mining reflects its commitment to sustainable growth and positive momentum in the mining industry. With this strategic investment and its encouraging financial results, the company maintains a key role in the future of South African gold mining.
Long-term planned projects
Harmony Gold Mining’s projection spans a decade, with the ambition to extend the life of the Mponeng mine from 07 to 20 years. Initial works are scheduled for 2025, marking the beginning of a crucial phase that supports the company’s long-term vision and contributes to the economic and sustainable momentum of the region.
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Source: mining-technology.com
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