Staff Reporter
Leading gold mining and exploration company Harmony says it expects to produce less than a tonne of gold during the 21-day national lockdown after it stopped operations at its nine underground mines in the country, six of which are in the Free State.
“It is anticipated that Harmony will only produce between 650kg to 700kg of gold in South Africa during the 21-day lockdown period,” the company said in a statement released Tuesday.
It said all exploration and capital projects have been suspended as the company seeks to preserve cash.
Harmony chief executive officer Peter Steenkamp said the company will continue with care-and-maintenance operations with minimum staff.
“The health and safety of all of our employees – and in particular those who continue to work on the care and maintenance of our mines – remain our highest priorities,” he said.
“We continue to ensure compliance with all prescribed and recommended preventive measures.”
Care and maintenance includes the continued provision of various essential services such as water, power and security and the operation of health hubs at each mine.
Harmony’s operations in the Free State include Tshepong Mine with a combined workforce of about 8 815 employees; Target 1 with 1 939; Bambanani 1 661; Joel Mine 1 982; Unisel 932; and Masimong 2 367.
Although closed for mining for some time, Masimong has mainly been used for ventilation, pumping and as a second escape outlet in recent years.
Harmony also has a plant reclamation project near Welkom with 235 employees.
Phoenix, another tailings retreatment operation, employs 336 people
President Cyril Ramaphosa last month directed that all businesses be closed and ordered people to stay home over the three-week period in a bid to curb the spread of COVID-19.
Only companies offering essential services were allowed to remain open while those with operations that require continuous processes such as furnaces and underground mine operations were required to make arrangements for care and maintenance to avoid damage to their continuous operations.