The restructuring is expected to create an immediately profitable operation, going forward, it noted.
SEATTLE (Scrap Monster): Harmony Gold announced publication of trading statement for the year ended 30th June, 2022.
According to company press release, it has decided to restructure Tshepong Operations, which constitute an integrated mining complex in the Free State, near the town of Welkom, some 250km from Johannesburg. Hereafter, Tshepong Operations will be reported on separately as Tshepong North and Tshepong South. It has suspended the Tshepong North sub-75 project and has reduced the life of the mine from 19 years to 7 years. The restructuring is expected to create an immediately profitable operation, going forward, it noted.
Harmony Gold announced that the capital which has been earmarked for Tshepong North will now be reallocated to projects delivering higher returns such as the Zaaiplaats project and the Kareerand tailings expansion in the Vaal River region. Peter Steenkamp, CEO, Harmony Gold noted that the decision was necessary to ensure sustainable and profitable mining, although it was a tough one.
The suspension of the project is in line with the company strategy to optimize its existing operations and asset mix by reallocating capital towards operations that have the potential to deliver the highest possible returns.
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