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Peter Steenkamp, Harmony CEO

Harmony Gold Mining Company Limited advises that unprotected industrial action at Kusasalethu has continued, despite various labour agreements reached with the Association of Mineworkers and Construction Union (AMCU). As a result, Harmony approached the Labour Court of South Africa on 31 March 2017, to obtain an interdict – which was granted – declaring ongoing industrial action at Kusasalethu led by AMCU to be unprotected, and requiring employees to return to work.

Harmony and recognised unions, including AMCU, have entered into various labour agreements since 2013. Despite reaching these agreements, AMCU and its members have since the beginning of 2017 continued to disrupt operations, threatening the safety of Harmony’s employees and impacting negatively on production.

AMCU and its members have ignored the court order granted on Friday, with no employees reporting for work over the weekend or today. An ultimatum has now been issued to Kusasalethu employees to return to work tomorrow night, failing which they may be subject to disciplinary action.

These actions have had significant implications to the viability of Kusasalethu.

Approximately 7 to 10 days of gold production have been lost since the 21st of March 2017 to date, at a rate of 15kg of gold production per day. Security measures at the mine have been increased to address complaints of intimidation and potential violence.

“Continuing with unprotected industrial action poses a real threat to the continued viability of the Kusasalethu mine. Given the history of this mine and the serious impact that continued production interruptions could have on the lives of our employees and their families, we call on AMCU to show responsible leadership. We urge employees at Kusasalethu to return to work,” says Peter Steenkamp, Harmony Chief Executive Officer.

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