Harmony Gold

Harmony Gold is a South African gold mining company headquartered in Johannesburg. Founded in 1950, it became one of the country’s largest gold producers and developed a portfolio centered on deep-level underground mining in the Witwatersrand Basin, together with open-pit, surface-reclamation and international operations. Its business is focused primarily on extracting and processing gold, with silver produced as a by-product at the Hidden Valley operation in Papua New Guinea. The company’s South African portfolio includes underground mines in the Free State, Gauteng and North West provinces, as well as the Kalgold open-pit mine and surface-processing activities. Named operations and complexes include Tshepong, Bambanani, Target 1, Doornkop, Joel, Kusasalethu, Masimong, Moab Khotsong and Unisel. These mines exploit several reef systems and ore bodies within and around the Witwatersrand Basin. Mining methods vary by site, including conventional narrow-reef stoping, undercut mining, mechanised mining, pillar extraction and shaft-pillar recovery. Ore is treated through dedicated or shared processing plants, including Harmony One, Target, Doornkop, Joel, Kusasalethu and Kalgold facilities. Harmony expanded its South African asset base through acquisitions from AngloGold Ashanti. In March 2018, it acquired Moab Khotsong and the Great Noligwa mine for approximately US$300 million, adding a relatively high-grade deep-level complex and potential shaft-pillar resources. In 2020, Harmony acquired AngloGold Ashanti’s remaining South African assets for approximately R4.4 billion, materially strengthening its position as a leading South African gold producer. Outside South Africa, Harmony operates the Hidden Valley open-pit gold and silver mine in Morobe Province, Papua New Guinea. Hidden Valley forms part of the wider Morobe Mining Joint Venture, in which Harmony holds a 50% interest. The operation consists of the Hidden Valley-Kaveroi and Hamata pits, with ore processed at an on-site plant. The company’s operating profile is shaped by the technical and social challenges of deep-level mining. Several South African mines extend more than two kilometres below surface, and Kusasalethu is described as Harmony’s deepest operation, at roughly 3,388 metres. Such mines face seismicity, difficult ground conditions, ventilation, support and worker-safety risks. Harmony has also operated in areas affected by illegal or informal mining, known locally as zama-zama activity, which has been linked to security incidents and fatalities. Harmony’s activities include mining, ore processing, surface-rock-dump treatment and tailings retreatment. Its Phoenix surface operation in the Free State was subject to a black economic empowerment agreement that transferred a 30% interest to empowerment partners. The company has also undertaken public-facing commercial activity, including the licensed sale in South Africa of a gold replica of the One Ring from The Lord of the Rings, made using gold associated with the Bloemfontein area. Harmony remains an active precious-metals mining company with a geographically concentrated operating base in southern Africa and Papua New Guinea.

Harmony Gold was founded in 1950 and grew within South Africa’s gold-mining industry, whose principal geological base is the Witwatersrand Basin. The company’s operations developed around a combination of deep-level underground mines, processing plants and surface-reclamation assets. Its South African activities span the Free State, Gauteng and North West provinces, with many operations exploiting narrow, tabular reef systems through conventional mining methods. The depth and geology of these mines have required specialized shaft infrastructure, ground-support systems, ventilation and ore-processing arrangements. The company’s operating portfolio has included mines and complexes such as Tshepong, Bambanani, Target 1, Doornkop, Joel, Kusasalethu, Masimong and Unisel. These assets differ in depth, reef type and mining method. Tshepong and Bambanani, near Welkom, mine the Basal Reef and related horizons at depths exceeding two kilometres. Target 1 combines mechanised massive-mining techniques with conventional stoping. Doornkop operates as a single-shaft mine in Gauteng, while Joel exploits the Beatrix Reef in the southern part of the Witwatersrand Basin. Kusasalethu, near the Gauteng–North West boundary, is Harmony’s deepest identified mine, reaching approximately 3,388 metres below surface and mining the Ventersdorp Contact Reef. Harmony also developed surface and open-pit activities. Kalgold is an open-pit mine in the Kraaipan Greenstone Belt of North West Province, with ore processed through a carbon-in-leach plant. Surface-rock dumps in the Free State can be treated when spare capacity is available at the Harmony One and Target plants. Phoenix is a tailings-retreatment operation near Virginia that uses the Saaiplaas plant. In connection with Phoenix, Harmony finalized an empowerment arrangement under which black economic empowerment partners received a 30% shareholding in the operation. A major phase of portfolio expansion came through transactions with AngloGold Ashanti. Harmony completed the purchase of Moab Khotsong and Great Noligwa on 1 March 2018 for a reported US$300 million. Moab Khotsong added a relatively new deep-level South African mine and high-grade production potential, while Great Noligwa provided a possible source of additional value through shaft-pillar extraction. The acquisition increased the scale and average grade profile of Harmony’s underground business. In 2020, Harmony acquired AngloGold Ashanti’s remaining South African mining assets for approximately R4.4 billion. The transaction further consolidated Harmony’s role as one of the largest gold-mining companies in South Africa and increased its control over domestic production, infrastructure and processing capacity. Harmony’s international presence is represented by Papua New Guinea’s Hidden Valley mine and its 50% interest in the Morobe Mining Joint Venture. Hidden Valley is an open-pit gold and silver operation in Morobe Province, approximately 210 kilometres northwest of Port Moresby. Its operating pits include Hidden Valley-Kaveroi and Hamata, and ore is treated at the Hidden Valley processing plant. The company’s history has also been marked by the risks surrounding mining security and informal extraction. In 2009, 63 illegal miners were reported killed at a Harmony mine in the Free State. In 2017, an incident involving alleged threats connected with zama-zama activity preceded the killing of regional manager Simphiwe Kubheka at Harmony Mines in Welkom. Four men were later given life sentences for the contract murder. These events illustrate the security, governance and community challenges associated with operating large deep-level mines in regions where abandoned or inaccessible workings may attract illegal miners. In addition to its core mining role, Harmony participated in a notable South African licensing arrangement for a gold replica of the One Ring from The Lord of the Rings. The replica was associated with gold from the Bloemfontein area and was sold through jewellery retailers and direct channels. Harmony remains an active gold-mining company with operations concentrated in South Africa and a material international operation in Papua New Guinea.

1. 2020Acquisition of AngloGold Ashanti’s remaining South African assets

   Harmony took over AngloGold Ashanti’s last South African mining assets in a transaction reported at approximately R4.4 billion.

   Source
2. 2019Convictions in Kubheka murder case

   Four men received life sentences for the contract murder of Simphiwe Kubheka.

   Source
3. 2018Moab Khotsong acquisition completed

   Harmony completed the acquisition of Moab Khotsong and Great Noligwa from AngloGold Ashanti on 1 March.

   Source
4. 2017Regional manager Simphiwe Kubheka killed

   Harmony regional manager Simphiwe Kubheka was shot dead at Harmony Mines in Welkom following reported threats associated with illegal mining.

   Source
5. 2009Fatal illegal-mining incident in the Free State

   Sixty-three illegal miners were reported to have died at a Harmony-owned mine in the Free State between late May and early June.

   Source
6. 1950Harmony Gold founded

   Harmony Gold was established as a South African gold-mining company.

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A major South African gold producer focused on high-grade and deep-level underground mining, complemented by open-pit, surface-reclamation and Papua New Guinean operations.

• GoldPrecious metals

  Gold is Harmony Gold’s principal mined commodity. The company extracts gold from deep-level underground mines, open-pit operations and surface-reclamation activities in South Africa, with ore processed through a network of dedicated and shared plants.

• SilverPrecious-metals by-product

  Silver is produced as a by-product of Harmony’s Hidden Valley operation in Papua New Guinea. The mine is an open-pit gold and silver operation with on-site processing infrastructure.

• The One Ring replica licensing initiative

  South Africa

  Harmony Gold secured a licence to sell a gold replica of the One Ring from The Lord of the Rings. The item used gold associated with the Bloemfontein area and was offered in different sizes through South African jewellery stores and direct sales.

  Outcome. The replica was commercialized as a limited cultural and jewellery-related offering; a specific sales outcome is not reported in the cited material.

  Source

• 2020Acquire AngloGold Ashanti’s remaining South African assetsM&A

  AngloGold Ashanti was exiting its remaining South African mining assets, while Harmony was consolidating its domestic gold-mining position.

  What changed. Harmony took over AngloGold Ashanti’s last South African mining assets.

  Aftermath. The transaction expanded Harmony’s South African operating base and reinforced its position as a leading gold producer in the country.

  Transaction value. R4.4 billion (2020 acquisition)

  Source
• 2018Acquire Moab Khotsong and Great NoligwaM&A

  Harmony sought to expand and strengthen its South African underground portfolio through the purchase of AngloGold Ashanti assets.

  What changed. Harmony completed the acquisition of Moab Khotsong and Great Noligwa on 1 March 2018.

  Aftermath. The transaction added a deep-level, relatively high-grade mining complex and shaft-pillar extraction opportunities to Harmony’s portfolio.

  Transaction value. US$300 million (2018 acquisition)

  Source

• 2017Killing of regional manager Simphiwe KubhekaControversy

  Harmony regional manager Simphiwe Kubheka was shot dead at Harmony Mines in Welkom after a reported sequence of threats involving the company’s approach to illegal miners. Four men were later sentenced to life imprisonment for the contract murder.

  Source
• 2009Deaths of illegal miners in the Free StateControversy

  Sixty-three illegal miners reportedly died at a Harmony-owned Free State mine between late May and early June 2009, highlighting the dangers and governance challenges associated with informal underground mining.

  Source

• 2020Harmony acquired AngloGold Ashanti’s remaining South African assets

  Harmony took over AngloGold Ashanti’s last South African mining assets in a transaction reported at approximately R4.4 billion.

  M&A
  Source
• 2018Harmony acquired Moab Khotsong and Great Noligwa from AngloGold Ashanti

  Harmony completed its acquisition of the Moab Khotsong mine and the Great Noligwa mine from AngloGold Ashanti on 1 March 2018.

  M&A
  Source

1. Harmony Gold (mining)
2. Harmony Gold official website