Harmony Gold Mining has announced an investment of R7.9bn ($410m) to extend the life of the Mponeng mine.

Located east of Johannesburg, South Africa, Harmony acquired the mine from AngloGold Ashanti four years ago.

The investment aims to extend the mine’s lifespan from seven to 20 years, with works scheduled to commence in 2025.

This development is particularly positive for South Africa’s declining gold industry, which has seen production dwindle to less than one-fifth of its peak due to escalating costs and the complexities of mining at greater depths, according to Bloomberg.

Harmony recently released its financial and operational results for the six-month period ending 31 December 2023.

The company reported a 35% increase in group revenue, rising to R31.41bn from R23.25bn. Profits for the six months to December 2023 tripled to R5.96bn.

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Earnings per share (EPS) also saw a significant increase, soaring 221% to 956 SA cents per share, up from a comparative EPS of 298 SA cents per share.

In the first half of fiscal year 2024, Harmony reported a 14% increase in total gold production, reaching 25,889kg (832,349oz) from 22,809kg (733,325oz).

In April last year, Newcrest Mining and Harmony Gold signed a framework memorandum of understanding (MOU) with Papua New Guinea to advance the development of the Wafi-Golpu copper-gold project in the country.

Newcrest and Harmony Gold, through their unincorporated Wafi-Golpu joint venture (JV), each hold a 50% stake in the Wafi-Golpu project. The MOU marks a step ahead for the JV towards the signing of a mining development contract for the Wafi-Golpu copper-gold porphyry project.

The project development, however, is subject to approvals from the boards of Harmony Gold and Newcrest Mining, and the finalisation of the permitting process.