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Expansion will create 7 500 mining jobs in five years
March 17, 2004
By Sherilee Bridge
Welkom - Harmony Gold would create 7 500 jobs at its mines by 2009, it said yesterday.
The company is spending R3.2 billion on five local gold expansion projects.
"The mining industry last year produced 5 percent less gold and if productivity stayed the same, we should have 5 percent less jobs," said Bernard Swanepoel, the chief executive of Harmony.
The local mining industry employs half the number of people it did 10 years ago. This is in line with the declining gold production from ageing mine shafts.
Reversal of this trend comes as Harmony replaces lost ounces, as mines reach the end of their lives, and the jobs lost along with those shaft closures.
Harmony said its 2004 capital expenditure was R1 billion and would be followed up by R800 million next year.
Briefing analysts and media on a two-day trip to its Witwatersrand and Free State operations, Swanepoel said the five growth projects at Doornkop, Elandsrand, Tshepong, Phakisa and Masimong would produce 1.6 million ounces of gold a year.
He said 1.1 million ounces of the amount was replacement ounces, which meant Harmony would increase its production by 500 000 ounces to 4.5 million ounces a year by the end of the decade.
That is without the possible addition of Target North, the massive expansion potential Harmony will inherit as a result of its acquisition of Avgold.
"The projects represent a significant step change in the recovery grade," said Ferdi Dippenaar, the marketing director of Harmony.
Each of the five projects has a life of 15 to 20 years, giving Harmony's local operations staying power in an industry just learning to navigate its way through lower rand gold prices.
Swanepoel said the gold price and exchange rate had had the biggest impact on jobs in the South African mining industry.
On threats by the National Union of Mineworkers to call a nationwide strike to protest against industry job losses caused by the stronger rand, Swanepoel said he had to agree with the union.
"I'm on the union's side. I want them to tell the government that the strong rand hurts but I don't want them to do it in working time," Swanepoel said.