Harmony Gold Announces Major Investment to Extend Mponeng Mine Lifespan

Harmony Gold Mining has unveiled plans to invest R7.9 billion ($410 million) to significantly extend the life of its Mponeng mine in South Africa. This strategic investment is set to prolong the mine's operation from its current seven years to a total of 20 years, with the enhancement works slated to begin in 2025.

Located east of Johannesburg, the Mponeng mine, which was acquired from AngloGold Ashanti four years ago, stands as a key asset for Harmony Gold. The decision to extend the mine's life comes as a beacon of hope for South Africa's gold industry, which has seen a steep decline in production over the years. The country's gold output has dwindled to less than one-fifth of its peak, a downturn attributed to rising costs and the challenges of deeper level mining, as reported by Bloomberg.

In its recent financial and operational report for the half-year period ending December 31, 2023, Harmony Gold revealed a 35% increase in group revenue, which rose to R31.41 billion from R23.25 billion. Furthermore, the company's profits for the same period saw a significant increase, tripling to R5.96 billion.

This substantial investment by Harmony Gold in the Mponeng mine not only underscores the company's commitment to South Africa's gold sector but also signifies a pivotal step towards revitalizing the industry by tackling the challenges of deep-level mining.