Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Technical Presentation (September 2012)
39 slides from Harmony Gold Mining's technical presentation, Sep 25, 2012
Slide 1: Hidden Valley Mine
HIDDEN VALLEY MINE Bevan Jones Analyst site visit 25 September 2012 1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za
Slide 2: Safe Harbour Statement and Competent Person Statement
Private Securities Litigation Reform Act Safe Harbour Statement and Competent Person Statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are int
Slide 3: Agenda
Agenda 1 Hidden Valley mine overview 2 Geology 3 Mining and fleet maintenance 4 Ore haulage 5 Processing 6 Environment 7 Costs 8 Human resources and community affairs 3 www.harmony.co.za
Slide 4: Mine overview
Jinsmoney Mine overview
Slide 5: Location
Location • Hidden Valley is located in the Morobe province in Papua New Guinea, and is approximately 120km by road, south west of Lae, the nearest commercial centre within the region 5 www.harmony.co.za
Slide 6: History and ownership
History and ownership • Construction of the Hidden Valley Mine access road began in 2007 • Access to site was achieved by pioneering 40km of access road from Bulolo to the mine site • The mine was officially opened in September 2010 • The operation is owned by the Hidden Valley Joint Venture (HVJV),
Slide 7: Geology
Geology www.harmony.co.za
Slide 8: Gold and silver deposit (Hidden Valley and Kaveroi)
Gold and silver deposit (Hidden Valley and Kaveroi)* • Hidden Valley is an open pit gold and silver mine, consisting of three main lodes: Hidden Valley, Kaveroi and Hamata • Hidden Valley Kaveroi (HVK) deposit is classified as a low-sulphidation epithermal gold-silver system • The Hidden Valley Kave
Slide 9: Hidden Valley and Kaveroi
Hidden Valley and Kaveroi • The metasediments above do not contain grade • Nor in general do the red-brown porphyry bodies • All the gold is contained within the pink granodiorite body 9 www.harmony.co.za
Slide 10: Gold deposit (Hamata)
Gold deposit (Hamata) • The Hamata deposit is a structurally controlled granodiorite hosted vein-stockwork gold deposit located in the southwest corner of the Wau Graben • The deposit is cut by two main faults – an east-northeast to east striking sub vertical fault, and – a north-northeast striking
Slide 11: Hamata | continued
Hamata |continued • Deposit is hosted entirely in the granodiorite pink • Grade is not found in the porphyry (dark red-Brown) 11 www.harmony.co.za
Slide 12: Hidden Valley Reserves and Resources
Hidden Valley Reserves and Resources* Mineral Resources (Gold) Measured Indicated Inferred Total Cutoff tonnes Gold Gold tonnes Gold Gold tonnes Gold Gold tonnes Gold Gold Mine Area Au g/t ('000t) g/t ('000kg) ('000oz) ('000t) g/t ('000kg) ('000oz) ('000t) g/t ('000kg) ('000oz) ('000t) g/t ('000kg)
Slide 13: Hidden Valley exploration
Hidden Valley exploration • Prospective exploration targets within the ML and within a 10km radius that could add to the reserve base • Will lever off existing infrastructure • Exploration work programs flagged for – Kerimenge – Mungowe – Yafo • generative work along Northwest trending fault systems
Slide 14: Mining and fleet maintenance
Mining and fleet maintenance www.harmony.co.za
Slide 15: Mining at Hidden Valley Kaveroi and Hamata
Mining at Hidden Valley Kaveroi and Hamata • Mining is conducted at 2 pits – Hidden Valley Kaveroi and Hamata • Hamata Pit is mined both for gold ore as well as waste for TSF construction • Mainly Komatsu gear is used consisting of 30 x 100 tonne 785 dump trucks, 5 x PC2000 excavators (2 in process
Slide 16: Characteristics and improvement initiatives
Characteristics and improvement initiatives • Waste is placed in stable waste dumps, with dump development ongoing • Potential rock sources for improvement of haul road conditions have been identified, which will improve productivity and reduce tyre costs • Transitioning to owner maintained is curre
Slide 17: Ore haulage
Ore haulage www.harmony.co.za
Slide 18: Ore haulage
Ore haulage • Ore is delivered by truck to the Hamata and Hidden Valley crusher stations • Crushed Hamata ore is delivered by conventional conveyor to the primary stockpile • Hidden Valley ore is delivered via a 4.5 kilometre overland pipe conveyor extending from the Kaveroi pit to the Hamata proces
Slide 19: Ore haulage
Ore haulage Secondary jaw crusher to be replaced by Overland conveyor (OLC) gyratory cone crusher 19 www.harmony.co.za
Slide 20: Overland conveyor (OLC) and crusher upgrade
Overland conveyor (OLC) and crusher upgrade • The OLC belt failure occurred in March 2011, caused by a substandard splice • The belt was re-commissioned in December 2011 quarter • Excessive wear and tear on the belt, caused by slabby material resulted in a review of the crusher design • The decision
Slide 21: Overland conveyor and crusher upgrade continued
Overland conveyor and crusher upgrade l continued Some key tasks to be performed as part of the upgrade project • Replace the existing primary vibro-feeder with a wobbler feeder to ensure adequate feeding and screening of the clay and oversized material • Install tramp steel removers to prevent dama
Slide 22: Overland conveyor and trucked tonnes
Overland conveyor and trucked tonnes • Post installation expectation is that the hauled tonnes will reduce significantly, with Hidden Valley Kaveroi material transported via the OLC • Currently the tonnes cost K32/t to truck to the mill compared to the OLC which operates at < K5/t, and are not affec
Slide 23: Proposed crusher design and layout
Proposed crusher design and layout • Install new primary wobbler, chutes, supporting steelwork and access platforms • Upgrade CV-03 with impact beds, idlers, drive • Install new secondary XL900 Raptor Crusher • Upgrade Bin apron feeder drive • Associated E&I changes • Install new secondary wobbler,
Slide 24: Processing
Processing www.harmony.co.za
Slide 25: Hamata processing plant
Hamata processing plant • The processing plant utilises conventional gravity and CIL circuits for gold extraction and a Merill Crowe circuit for silver extraction • It is a complex circuit to cater for different Hamata and Hidden Valley Kaveroi ore characteristics • The ratio of Hidden Valley Kavero
Slide 26: Initiatives and projects underway
Initiatives and projects underway Throughput • Replaced mill feed chute liners with more wear resistant product • Utilise full power band of slipring energy reduction on mill motors, giving higher power and potentially higher milling speed to 990rpm, ultimately increased throughput • Introduce large
Slide 27: Improvement initiatives
Improvement initiatives Initiatives to improve Au recoveries Initiatives to achieve 60% Ag • Increase cyanide destruction circuit capacity recoveries (INCO) • Increase oxygen supply to the leach and – this allows us to add more cyanide and also cyanide destruct circuits remain environmentally compli
Slide 28: Environment
Environment www.harmony.co.za
Slide 29: Key focus area
Key focus area • Hidden Valley has been permitted under the Environmental Act of 2000 • Hidden Valley conducts extensive environmental monitoring and reports quarterly and annually to the Department of Environment and Conservation (DEC) • An Environmental Improvement Plan (EIP) has been developed to
Slide 30: Managing environmental impacts
Managing environmental impacts • Tailings from the processing plant are treated and stored in a purpose built tailings storage facility, the only one of its kind in Papua New Guinea • All mine tailings, the residues of the gold recovery process, are permanently stored in this facility • Approximatel
Slide 31: Costs
Costs
Slide 32: Cash costs
Cash costs Cost efficiency improvements driven by • Increased mining and processing volumes from additional mining fleet will reduce mining unit costs • Improved gold production and silver recoveries • Overland conveyor / crusher upgrade – reduction in trucking costs • Cost initiatives include workf
Slide 33: Human resources and community affairs
Human resources and community affairs www.harmony.co.za
Slide 34: Employment and memorandum of agreement
Employment and memorandum of agreement Employment, local hiring, training and development • Hidden Valley is a predominantly fly-in-fly-out operation with around 1 035 employees and 1 690 contractors • Hidden Valley operates in accordance with a memorandum of agreement (MoA) with local landowners an
Slide 35: Community engagement initiatives
Community engagement initiatives • Planning and implementing regular consultations and communications with local communities and key stakeholders about project activities • Partnering with communities and key stakeholders on sustainable development programmes that are aligned with regional developme
Slide 36: Community engagement initiatives
Community engagement initiatives • Invest early in education and literacy programmes for local communities • Understand and plan for long term socio-economic and post closure community impacts • In support of the above, Hidden Valley Community affairs have been implementing projects on construction
Slide 37: Community engagement initiatives
Community engagement initiatives Economic contribution and benefits • Shares in a landowner business group, NKW Holdings Limited (NKW), are owned for the benefit of the landowners through three investment companies formed by each of the area’s clans • As a result of this approach, NKW and their vari
Slide 38: Community engagement initiatives | continued
Community engagement initiatives | continued Economic contribution and benefits • Hidden Valley creates economic value for Papua New Guinea and local communities in a number of ways, including direct revenues from operations, investments in public infrastructure and services, support of local suppli
Slide 39: An exciting investment proposition
Henrika Basterfield Investor Relations Manager Tel: +27 (0)11 411 2314 Mobile: +27 (0)82 759 1775 Email: henrika@harmony.co.za Marian van der Walt Executive: Corporate and Investor Relations Tel: +27 (0)11 411 2037 Mobile: +27 (0)82 888 1242 Email: marian@harmony.co.za An exciting investment proposi
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