Disregarding the declining gold industry in South Africa, Harmony Gold Mining Co. announced that it will invest R7.9 billion to prolong the life of the world’s deepest mine.
When AngloGold Ashanti sold its final remaining properties in South Africa four years ago, the business bought the Mponeng mine, which is located east of Johannesburg. In Harmony’s portfolio, the project has emerged as the top performer, enabling the miner to quadruple its profit in the six months ending in December.
With work starting in 2025, the investment will increase Mponeng’s lifespan from seven to twenty years. For South Africa’s faltering gold industry, where output has decreased to less than a quarter of its peak due to higher mining costs and geological difficulties, this is a rare bit of good news.
Due to these realities, companies like AngloGold, Gold Fields, and Harmony have been forced to enter new markets in the Americas, Africa, and Australasia.
Nevertheless, Mponeng—the main producer of Harmony—keeps bringing in money for AngloGold. Harmony will pay R108 million to the prior owner of the mine in accordance with the terms of the original acquisition because the mine’s production in 2023 exceeded 250 000 ounces.
In the last half of 2023, Harmony’s profit increased thrice to R5.96 billion from the previous year, while overall output increased by 14% to 832 000 ounces.
