Glossary of terms

US$

United States dollar

ABET

Adult basic education and training

ADR

American depositary receipts

Ag

Silver

AMCU

The Association of Mineworkers and Construction Union

AMD

Acid mine drainage – outflow of acidic water formed by mining activity and egress of water following contact with certain types of orebodies and host rock. Also known as acid rock drainage

ANC

African National Congress

ART

Antiretroviral therapy

Au

Gold

BIF

Banded Ironstone Formation

BEE

Black economic empowerment

BBBEE

Broad-based black economic empowerment

By-products

Any products emanating from the core process of producing gold, including silver and uranium in South Africa and copper, silver and molybdenum in Papua New Guinea

Calc-silicate rock

A metamorphic rock consisting mainly of calcium-bearing silicates such as diopside and wollastonite, and formed by metamorphism of impure limestone or dolomite

Capital expenditure (capex)

Expenditure on tangible assets – includes ongoing and project capital. In particular, capex includes spending on ongoing development, abnormal expenditure, shaft projects and major projects, and covers both sustaining and growing operations

Carbon-in-leach (CIL)

Gold is leached from a slurry of gold ore with cyanide in agitated tanks and adsorbed on to carbon granules in the same circuit. Granules are separated from the slurry and treated to remove gold

Carbon-in-pulp (CIP)

Gold is leached conventionally from a slurry of gold ore with cyanide in agitated tanks. The leached slurry passes into the CIP circuit where carbon granules are mixed with the slurry and gold is adsorbed onto the carbon. Granules are separated from the slurry and treated to remove gold

Cash costs

Total cash costs include site costs for all mining, processing and administration, reduced by contributions from by-products and include royalties and production taxes. Depreciation, rehabilitation, corporate administration, retrenchment, capital and exploration costs are excluded. Total cash costs per ounce are attributable total cash costs divided by attributable ounces of gold produced

CDP

Carbon Disclosure Project – an independent not-for-profit organisation that acts as an intermediary between shareholders and corporations on all climate change-related issues, providing primary climate change data from the world’s largest corporations to the global marketplace

CEO

Chief executive officer

CLR

Carbon leader reef

CO₂ emissions

Total CO₂ emissions calculated from direct emissions generated from petrol and diesel consumption and indirect emissions generated from electricity consumption (expressed in tonnes)

COIDA

Compensation for Occupational Injuries and Diseases Act of 1993

Critical skills training – number of people trained in FY14¹

The following disciplines are defined as core skills:

• Mining
• Engineering
• Ore reserves
• Metallurgy

The critical skills within these disciplines are:

• Mining – general manager; mine manager; mining manager
• Engineering – engineers; junior engineers
• Ore reserves – ore reserve management; HOD – geology, survey and planning; section geologist/ senior geologist; section surveyor/mine surveyor/senior shaft surveyor; section geostatistician/senior geostatistician (geological technician); section planner/senior planner; surveyors/geotechs
• Metallurgy – plant manager; senior metallurgist

CSI/R

Corporate social investment/responsibility

Cu

Copper

Cut-off grade

Minimum grade at which a unit of ore will be mined to achieve the desired economic outcome

Cyanide Code

International management code for manufacture, transport and use of cyanide in producing gold. The aim is to promote responsible management of cyanide used in gold mining; to protect human health and reduce potential for environmental impacts

DEC

Department of Environment and Conservation

Depletion

Decrease in quantity of ore in a deposit or property due to extraction or production

Development

Process of accessing an orebody through shafts or tunnelling in underground mining

Discontinued operation

A component of an entity that has been disposed of or abandoned or classified as held for sale until conditions precedent to the sale have been fulfilled

DMR

Department of Mineral Resources, South Africa

DOTS

Directly observed therapy short-course

DSM

Demand-side management

DTI

Department of Trade and Industry

EBIT

Earnings before interest and tax

EFF

Economic Freedom Fighters

Effective tax rate

Current and deferred taxation as a percentage of profit before taxation

Electricity purchased (kWh)¹

Electricity purchased from the supplier during the reporting period. This includes all electricity purchased by source (fossil fuel, nuclear, hydroelectric, wind, solar, etc). It excludes electricity generated by the operation itself and electricity supplied to third parties such as mine hostels/accommodation where cost is recovered from employees, communities and businesses

EMP/S

Environmental management programme/system

EMPR

Environmental management programme report

Employment equity in management in South Africa (%)¹

Employment equity is reported as a number and percentage of the total HDSA employed per band. For HDSA we refer to: black people (African, coloured and Indian males and females); and white women. White males and foreigners (including those naturalised after the DTI code date on March 1994) are excluded

Employment equity is measured in the bands D, E and F, where:

• Top management (F band)
• Senior management (D5-E4 band)
• Middle management (D3-D4 band)
• Junior management (D1-D2 band)
• Core and critical (E-D1 management levels in core disciplines)

Energy consumption

Energy use calculated from electricity purchased and diesel and petrol consumed during the reporting period

Equity

Shareholders’ equity adjusted for other comprehensive income and deferred taxation

ERP

Enterprise resource planning

ESOP

Employee share ownership scheme

ETFs

Exchange traded funds

EWT

Endangered Wildlife Trust

Exco

Executive committee

FIFR

Fatality injury frequency rate

A work-related injury which results in loss of life

The calculation for the fatality injury frequency rate (FIFR): Actual fatal injuries x 1 000 000/hours worked

The calculation for hours: Actual shifts worked x 9 (this is throughout Harmony for consistency to assume every person works nine hours)

FOG

Fall of ground

FOGIFR

Fall of ground injury frequency rate

Any work-related fall-of-ground injury that calls for medication, treatment, medical checks and reviews, irrespective of time lost or not

The calculation for FOGIFR: Actual fall of ground injuries x 1 000 000/hours worked

The calculation for hours: Actual shifts worked x 9 (this is throughout Harmony for consistency to assume every person works nine hours)

Financial asset

Cash or cash equivalents, an equity instrument of another entity, a contractual right to receive cash, or a contractual right to exchange a financial instrument under favourable conditions

Financial liability

A contractual obligation to deliver cash or another financial asset or a contractual obligation to exchange a financial instrument under unfavourable conditions. Includes debt

FSC

Forest Stewardship Council

g/TEC

Grams per total employee costed

GDP

Gross domestic product

GHG

Greenhouse gas – a gas that contributes to the greenhouse effect by absorbing infrared radiation, such as carbon dioxide and chlorofluorocarbons (CFCs)

Gold produced

Refined gold derived from the mining process, measured in ounces or kilograms in saleable form

Grade

Quantity of gold contained in a unit weight of gold-bearing material, generally expressed in ounces per short ton of ore (oz/t), or grams per metric tonne (g/t)

GRI

Global Reporting Initiative

GWh

Gigawatt hours

HAART

Highly active antiretroviral treatment

HDSAs

Historically disadvantaged South Africans – all people and groups discriminated against on the basis of race, gender and disability as per the MPRDA definition and the Mining Charter definition

HIRA

Hazard identification and risk assessment

HIV

Human immuno deficiency virus

Housing and living conditions:

a) conversion of operational hostels from sharing to single occupancy rooms¹

The number of employees who share a room in Harmony’s company accommodation at active mining operations, and the number of employees who have single rooms in Harmony’s company accommodation at active mining operations. This is calculated by comparing the total physical hostel design capacity (room numbers) versus the total number of hostel occupants. This gives the total average occupancy rate per hostel. An average of greater than one person for an active mining operation confirms that the occupant is sharing accommodation

b) Conversion of non-operational hostels from single-sex units to family units known as community rental units (CRU)

The number of family units is determined by the architectural design of the new structure, designed to create community rental units for both Harmony employees and members of the public

c) Promoting home ownership

Company houses sold to individual employees at special prices and other housing development initiatives being promoted or facilitated by Harmony

HR

Human resources

HSRC

Human Sciences Research Council

ICMM

International Council on Mining and Metals

ICT/IT

Information and communication technology/information technology

IFRS

International Financial Reporting Standards

IIA

Institute of Internal Auditors

IIRC

International Integrated Reporting Council

ILO

International Labour Organization

ISO

International Organization for Standardization

ITTCC

Industry task team on climate change

IUCN

International Union for Conservation of Nature and Natural Resources

Indicated mineral resource

Part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information using appropriate techniques from outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but close enough for continuity to be assumed

Inferred mineral resource

Part of a mineral resource for which tonnage, grade resource and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability

Interest cover

EBIT divided by finance costs and unwinding of obligations

IRCA

International register of certificated auditors

ISO 14001

Published in 1996 by the International Organisation for Environmental Standardisation, it specifies actual requirements for an environmental management system

JIBAR

Johannesburg interbank agreed rate

JMS

Joint Metallurgical Services

JORC

Australian Code for Reporting Exploration Results, Mineral Resources and Mineral Reserves

JSE

JSE Limited (Johannesburg Stock Exchange)

Kina

Papua New Guinea currency

King III

King report on governance for South Africa, published in 2009

kg

Kilograms

KPIs

Key performance indicators

Kosh

Klerksdorp, Orkney, Stilfontein and Hartbessfontein basin

Land disturbed and land available for rehabilitation (ha)

Total land footprint disturbed less the land footprint used for ongoing or future mining activities, where the footprint of disturbed area includes all buildings, roads and mining area that needs to be rehabilitated according to the Environmental Management Programme Report (EMPR); the area rehabilitated meets the required standard of the EMPR, final land use plans and only maintenance and monitoring is needed; and the land available for rehabilitation is the area used for ongoing or future mining activities

Leaching

Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon

LED

local economic development

LIBOR

London interbank offer rate

LOM

Life-of-mine :number of years an operation is scheduled to mine and treat ore, based on current mine plan

LPG

Liquefied petroleum gas

LED

Local economic development

Local economic development (LED) spend/ community spend (ZAR)¹

Local economic development project spend linked to the licence of each mine. The following categories qualify as LED spend:

• bursary students
• bursary graduates
• training bridging school
• training mining
• training engineering
• costs related to:
  • mine community projects
  • labour sending area; projects in community that is not for mine employees; and
  • conversion of hostel into family units
• Procurement spend related to:
  • contractor compliance; and
  • BEE procurement
• corporate social responsibility

LTIFR¹

Lost-time injury frequency rate: an LTI is a work-related injury that calls for medication, treatment, medical checks, reviews and subsequent days off work. This injury or illness incapacitates injured employees from performing their normal occupation on the next scheduled work day or shift.

The calculation for the lost-time injury frequency rate (LTIFR): Actual lost-time injuries x 1 000 000/hours worked

The calculation for hours: Actual shifts worked x 9 (this is throughout Harmony for consistency to assume every person works nine hours)

m²/TEC

Square metres per total employee costed

MBoD

Medical Bureau of Occupational Diseases

MDR TB

Multidrug-resistant TB

Measured mineral resource

Part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from outcrops, trenches, pits, workings and drill holes. Locations are spaced closely enough to confirm geological and grade continuity

MHSC

Mine Health and Safety Council

MHSA

Mine Health and Safety Act (No 29 of 1996)

Mine call factor

The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling

Mineral resource

A concentration or occurrence of material of intrinsic economic interest in/on the earth’s crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing geological confidence, into inferred, indicated and measured categories

Mining Charter

Broad-based social-economic empowerment charter for the South African mining industry. The goal is to create an industry that reflects the promise of a non-racial South Africa

MMJV

Morobe Mining Joint Ventures

MOSH

Mining Industry Occupational Safety and Health

Moz

Million ounces

MPRDA

Minerals and Petroleum Resources Development Act (No 28 of 2002)

MQA

Mining Qualifications Authority, a sector education training authority for the mining and minerals sector facilitating human resources development

MW

Megawatt

NBI

National Business Initiative

NEMA

National Environmental Management Act

NERSA

National Energy Regulator of South Africa

NGO

Non-governmental organisation

NIHL

Noise-induced hearing loss reported as the number of new cases identified and submitted for compensation during the reporting period

NNR

National Nuclear Regulator

NQF

National Qualifications Framework

NUM

National Union of Mineworkers

NUMSA

National Union of Metalworkers of South Africa

NWA

National Water Act

NYSE

New York Stock Exchange

OHSAS 18001

Occupational health and safety assessment specification

Ongoing capital

Capital expenditure to maintain existing production assets. This includes replacement of vehicles, plant and machinery, ore reserve development and capital expenditure related to safety, health and the environment

Operating margin

Revenue less production costs expressed as a percentage of revenue

Pay limit

The grade of a unit of ore at which revenue from the recovered mineral content of the ore is equal to the total cash cost, including ore reserve development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or ounces per short ton (before dilution and mineral losses)

PI

Principal inspector of mines

PNG

Papua New Guinea

Preferential procurement – BEE total spend (ZAR)¹

Procurement spend collected from the Harmony ERP system’s payment register, which is only the discretionary spend value spent with suppliers that hold a valid BEE certificate, and comply with the minimum HDSA ownership of 25%, or more. The reporting period for this KPI is 26 June 2013 to 25 June 2014, and reports the spend throughout the reporting period regardless of invoice date. Reporting is aligned with the requirement of the revised Mining Charter of September 2010

Probable mineral reserve

Economically mineable part of an indicated, and in some cases, a measured mineral resource. It includes diluting materials and allowances for losses that may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified

Productivity

An expression of labour productivity based on the ratio of grams of gold produced per month to the total number of employees in underground mining operations

Project capital

Capital expenditure to either bring a new operation into production; to materially increase production capacity; or to materially extend the productive life of an asset

Proved reserve

Economically mineable part of a measured mineral resource. It includes diluting materials and allowances for losses that may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified

RBE

Rail-bound equipment

Reclamation

In South Africa, reclamation describes the process of reclaiming slimes (tailings) dumps using high-pressure water cannons to form a slurry that is pumped back to metallurgical plants for processing

Reef

A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic levels of gold

REFIT

Renewable energy feed-in tariff

SAMREC

South African Code for Reporting Exploration Results, Mineral Resources and Mineral Reserves

SANS

South African national standard

Scope 1 carbon emissions (tCO₂e)¹

Direct combustion of fuel by the Harmony Group (explosives, diesel and petrol)

Scope 2 carbon emissions (tCO₂e¹

Scope 2 emissions calculated from electricity purchased (from the power utility excluding use by third parties) multiplied by the appropriate factor as indicated by the electricity supplier

Scope 3 carbon emissions (tCO₂e)¹

Indirect combustion by the Harmony Group in line with Scope 3 emissions in the following categories, as indicated by the GHG Protocol:

• Purchased goods and services
• Capital goods
• Fuel and Energy related emissions not included in Scopes 1 and 2
• Upstream transportation and distribution
• Waste generated in operations
• Business travel
• Employee commuting
• Upstream leased assets
• Downstream transportation and distribution
• Processing of sold products
• Use of sold products
• Downstream leased assets
• Franchises
• End of life treatment and
• Investments

Silicosis – number of new cases certified in FY14¹

The number of cases of pure silicosis confirmed by the MBoD in FY14, which includes all cases that have been received by Harmony as confirmed during FY14, regardless of the date of the MBoD letter. Cases where other conditions are present, specifically tuberculosis (TB), are not included in this number

SLPs

Social and labour plans aimed at promoting employment and advancing the social and economic welfare of all South Africans while ensuring economic growth and socio-economic development as stipulated in the MPRDA

SMMEs

Small, medium and micro enterprises

SOX

Sarbanes-Oxley

Tailings

Finely ground rock of low residual value from which valuable minerals have been extracted. Discarded tailings stored in dam facilities

TB – number of cases confirmed in FY13

Tuberculosis (TB). The number of cases of pure TB confirmed by the MBoD in FY13, which includes all cases that have been received by Harmony as confirmed during FY13, regardless of the date of the MBoD letter. Cases where other conditions are present, specifically silicosis, are not included in this number

Tonne/ton (t)

Metric = 1 000kg/Imperial = 2 000 pounds (1 016kg)

Tpa(d/m)

Tonnes/tons per annum (day/month)

TSF

Tailings storage facility

UASA

United Association of South Africa

US

United States

VCT

Voluntary counselling and testing

Volumes of mineral waste disposed (tonnes)¹

Mineral waste consists of waste rock and slimes/tailings. Waste rock refers to the amount of waste rock produced and/or hoisted to surface, and placed on a waste rock disposal site during the reporting month. Slimes/tailings refers to the total amount of slimes/tailings produced by the processing plant during the reporting month

Waste

Material with insufficient mineralisation for future treatment and discarded

Water used for primary activity (kilolitres)¹

The total make-up or new water drawn into the boundaries of the operation from all sources (including surface water, groundwater and municipal water supply or water utilities) for use for mining and processing-related activities including use by contractors. This definition excludes: internally recycled water, affected fissure water, water discharged to receiving environment and supply to third parties such as communities and businesses

Weighted average number of ordinary shares

Number of ordinary shares in issue at the beginning of the year, increased by shares issued during the year, weighted on a time basis for the period in which they have participated in the income of the company, and increased by share options that are virtually certain to be exercised

WHO

World Health Organization

Yield

Amount of valuable mineral or metal recovered from each unit mass of ore expressed as ounces per short ton or grams per metric tonne

YTD/ytd

Year to date

1. ¹ Definitions applied to the Selected Sustainability Indicators assured by independent auditors