COMPANY COMMENT
Harmony’s safety precautions delay full benefit of Moab
Harmony took ownership of Moab Khotsong in March 2018, paying AngloGold Ashanti $300m for the mine
The immediate benefits of the inclusion of the Moab Khotsong mine in Harmony Gold’s SA asset base have not been realised as the company takes pains to raise the mine’s safety standards. Harmony took ownership of Moab Khotsong near Orkney, in the Free State, in March, paying AngloGold Ashanti $300m for the mine, its sister Great Noligwa shaft and tailings. The recovered grade at Moab Khotsong dipped in the September quarter as management took steps to shore up underground safety and it expects the grade to return to 10g/ton from 8.44g/ton in the first quarter of Harmony’s 2019 financial year. With the mine delivering gold as it should, this will be an important source of cash for Harmony, which needs to find about R21bn to fund its half of the Wafi-Golpu gold and copper mine in Papua New Guinea. Moab Khotsong is the biggest in the Harmony stable and a critical addition to its fleet of older mines that CEO Peter Steenkamp has flagged for closure in the next few years. The underground ...
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