Harmony Gold Mining, South Africa’s largest gold producer, is seeking board approvals to deepen its flagship Mponeng mine in an effort to extend its lifespan.
- The Johannesburg-based company aims to capitalize on the world’s deepest gold mine and has seen a rebound in profitability, reporting an annual profit of $275 million compared to a net loss of $48 million the previous year.
- CEO Peter Steenkamp expressed confidence in the mine’s potential, citing its high-grade ore and long-term viability as reasons to pursue further development.
- Harmony is among the few gold miners in South Africa facing challenges in extracting profits from aging and deep mines, compounded by issues such as electricity shortages and rising crime.
- The company plans to extend mining depths beyond the current level of approximately 3.8 kilometers (2.4 miles) and is confident in its ability to safely operate at these depths.
- Harmony acquired Mponeng from AngloGold Ashanti, which has shifted its focus to more lucrative deposits outside of South Africa.
- The company expects to produce between 1.38 million and 1.48 million ounces of gold this year, slightly lower than the previous year’s production of 1.47 million ounces.