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Harmony takes on illegal mining

Johannesburg - Illegal mining at Kusasalethu posed a real threat to health, safety and the viability of the mine, Harmony Gold [JSE:HAR] said on Friday.

"Harmony Gold Mining Company Limited advises that management has decided to take serious action to tackle illegal mining at its Kusasalethu mine," the company said in a statement.

"The initiative has been stepped up following the outbreak of a fire at the mine yesterday afternoon, which is believed to have been caused by illegal miners."

Established surveillance mechanisms alerted mine management to the fire, and standard evacuation procedures meant all employees underground at the time were brought safely to the surface.

Harmony has now closed the mine for two weeks, aiming to remove all illegal miners, as well as complete all security and access control measures.

No production would occur during this period and employees would be sent on leave.

CEO Graham Briggs said: "The risk of yet another underground fire is a risk that we are not prepared to take and therefore we are reverting to this temporary mine closure."

Thursday's fire was the third fire of this nature at Kusasalethu in October.

While the company was pleased no one was harmed in the fires, it was clear illegal mining was a threat to employees' safety and health and to the mine's continued viability.

Kusasalethu's production has not reached planned levels and the ongoing incidents of sabotage further undermined the mine's sustainability.

The company said although illegal mining was more common at abandoned and near-surface mines, it was still rife in deep-level underground mines.

"These activities pose a threat not only to the illegal miners' own health and safety, but also to the safety of employees," Harmony said.

"Very often these activities result in damage to property and mining equipment and disruption to operations as a result of negligence, sabotage, theft and vandalism."

Illegal mining potentially caused pollution, underground fires and depleted mineral deposits, making the future mining of such deposits possibly not economical.

Harmony said its employees had been threatened by illegal miners.

"At the same time it is also known that some employees have aided illegal miners through access to workings, equipment and food and water," Harmony said.

"During October 2014, 105 illegal miners have been arrested and about 25 employees are subject to disciplinary action."

Harmony was adopting an uncompromising stance towards such activities and was working with organised labour and regulatory authorities.

Increased security measures were being implemented, and improved clocking-in systems to tighten control on who entered and exited its mines.

The company also inspected closed-up sections regularly to ensure they remained sealed off and could not be accessed illegally.

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