Harmony Gold Places Target 3 on Care and Maintenance

Harmony Gold Mining Company Ltd. (NYSE:HMY) announced plans to put its Target 3 operation on care and maintenance after it has fulfilled the requirements of a section 189 process.

Target 3 employs about 1,500 people, and the company said that “[a]s far as it is possible to do so,” it will take measures to minimize and/or avoid job losses.

As quoted in the press release:

Despite numerous initiatives by both management and organised labour to return Target 3 to profitability, this operation has continued to record cash flow losses. Given the current gold price environment, and the significant capital investment required to sustain operations at this shaft, Target 3 is predicted to continue to make a loss in the foreseeable future. Target 3 made a cumulative loss of approximately R260 million in the past 4,5 years. Additional development and equipping is required to access the targeted South Block to sustain operations at Target 3 and, in particular the build-up in Basal reef stoping.

Click here to read the full Harmony Gold Mining Company Ltd. (NYSE:HMY) press release.