Archived World Gold Council Document

LONDON: 20 October 1999

Two new members for the World Gold Council
Harmony and Royal Gold join producer group

Harmony Gold Mining, South Africa's third-largest gold producer, has with immediate effect re-joined the World Gold Council, the association representing the wider marketing and public policy issues of many of the world's biggest gold mining companies. Royal Gold, the largest US-based royalty company*, has also joined the WGC.

"We are delighted that Harmony, one of the world's most important and innovative gold producers, has decided to re-join the WGC. It is equally exciting that Royal Gold has decided to take out membership. We hope that these moves will be seen as an endorsement of the reinvigorated activity of the Council. The WGC is actively seeking to expand its membership by demonstrating its renewed dedication to boost the commercial interests of current and potential members. In the course of the next 12 months we hope that others will see compelling reasons for joining the WGC," said Miss Haruko Fukuda, chief executive of the WGC.

Mr Bernard Swanepoel, chief executive of Harmony, said that while his company had been critical of the WGC in the past, the recent change of leadership of the Council had considerably restored his faith that membership would bring real benefits to Harmony. Harmony resigned from the WGC with effect from 31 December 1994, when it was part of the Randgold group. Miss Fukuda took up her role at the WGC in March this year.

"We are greatly encouraged to see the WGC taking a much higher public profile on behalf of the gold mining industry. Its recent work under Miss Fukuda has demonstrated that the Council is undergoing a genuine and thorough reorganisation, one which we heartily endorse.

"We think the Council can add real value to our business, and look to it to continue to provide a leadership role for the gold industry," said Mr Swanepoel.

The mission of the WGC is to promote greater global demand for gold and to help member companies realise their ambition to develop wider uses for gold. In the past few years the environment in which gold mining companies operate has changed considerably, with for example the role of official sector gold holders (such as central banks) taking on much greater significance. The WGC's work in this and other fast-changing areas - such as regulatory change and advanced marketing techniques - has encouraged Harmony in its decision to return to the Council.

Harmony is now producing about 1.3m troy ounces of gold a year, though it plans to expand this to 2m ounces by the end of the year. It is in negotiations to open a new gold refinery, with a capacity of turning out 100 tonnes a year, in Virginia, close to the Harmony mine.
- Ends -

Note:

* A royalty company is one which does not itself produce gold but holds royalty interests in gold properties.

Full details concerning membership of the WGC are available on the core page of the WGC website, which is www.gold.org.

Contacts:
Ferdi Dippenaar, Commercial Director, Harmony Gold Mining: telephone (00 27 11) 802 1822
Stanley Dempsey, Chairman and CEO, Royal Gold: telephone (001 303) 573 1660.
Gary Mead, Head of Research, WGC: telephone 0171 930 5171
Keith Irons, Chairman, Bankside Consultants: telephone 0171 220 7477.