Following a sit-in waged by union miners prior to the holiday break, Harmony Gold Mining Co. Ltd. has decided to keep the mine closed until it has determined it is safe for its employees to commence mining activities. During the December 2012 quarter Kusasalethu experienced an unprotected strike, numerous other incidents of illegal industrial action, violence, sit-ins, vandalism of mine property and other labor disruptions. On December 21, 2012, 1,700 mineworkers, representing the day shift, took part in a sit-in. Demands from the underground mineworkers, led by AMCU union representatives, included the withdrawal of the suspension of the 578 employees including contractors that were suspended on December19, 2012. The miners agreed to return to surface later in the day.

Because of the distractions, Kusasalethu achieved only 22% of its planned gold production. This has had a significant impact on cash flows. Several conditions to re-open the mine have been sent to relevant stakeholders and all responses will be considered and reviewed when received. The discussion/consultation with the various stakeholders will take 60 working days from the day the section 189 notice has been served. Harmony will pursue alternatives that may emanate from this process. As many as 5,200 miners could lose their jobs.

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