[miningmx.com] — HARMONY Gold Mining, Africa’s third-largest gold miner, said on Wednesday it would delay development of a R6bn shaft at its Evander mine in South Africa due to cash constraints.
CEO Graham Briggs said it would be difficult to obtain board approval for the project when other units of the gold producer were in the process of ramping up production.
The group previously said the new shaft would help increase output.
Harmony earlier this month said its total gold production for the year to end-June rose 4 percent from the previous quarter to 346 714 ounces, with total cash costs up to $831 per ounce from $829 per ounce the previous three months.
“We have got, at the moment, no intention of proceeding with the project,” Briggs told Reuters.
Harmony said in a document on its website that it was positioned to generate sufficient cash to fund growth and dividends, but it gave no further details.
Harmony Gold shares were down 0.22 percent at R73.84 at 09:07 GMT compared with a 0.65 weaker Top-40 All-Share index.
