Harmony Gold Mining Company Limited (HMY): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le monde complexe de l'exploitation minière mondiale, Harmony Gold Mining Company Limited (HMY) navigue dans un labyrinthe de défis qui s'étendent bien au-delà de la simple extraction de l'or. Des profondeurs des mines souterraines sud-africaines aux paysages complexes des cadres réglementaires internationaux, cette analyse de pilon dévoile l'écosystème multiforme dans lequel l'harmonie fonctionne. Donnez une exploration complète des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise, révélant la danse complexe de la survie et de la durabilité dans l'une des industries les plus exigeantes du monde.

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs politiques

Environnement réglementaire de l'industrie minière sud-africaine

La loi sur le développement des ressources minérales et pétrolières (MPRDA) oblige les sociétés minières à obtenir des droits minières. Depuis 2024, Harmony Gold doit se conformer à 26 Exigences réglementaires spécifiques pour les licences opérationnelles.

Aspect réglementaire	Exigence de conformité	Impact sur l'or harmonie
Droits minières	Renouvellement obligatoire tous les 5 ans	Nécessite un processus administratif continu
Règlements environnementaux	Mandats de réhabilitation stricts	Coût de conformité estimé: 350 millions de rands par an

Conformité à l'autonomisation économique noire (abeille)

L'or harmonie doit maintenir Propriété minimale des abeilles de 26% Conformément aux codes d'autonomisation économique noirs (B-BBEE) à base.

• Propriété actuelle des abeilles: 32,4%
• Investissement annuel dans les fournisseurs appartenant à des Noirs: 1,2 milliard de rands
• Représentation de la gestion des Noirs: 54,7% au niveau exécutif

Instabilité politique dans les régions minières

Les tensions politiques dans les provinces de l'État libre et du Nord-Ouest ont un impact directement sur les opérations minières. Les grèves du travail en 2023 ont entraîné 17 jours d'interruption de production.

Province	Indice des risques politiques	Jours de perturbation opérationnelle
État libre	Élevé (7.2 / 10)	12 jours
Nord-Ouest	Modéré (5.6 / 10)	5 jours

Pression du gouvernement pour l'exploitation durable

MANDATS DU GOUVERNEMENT SUD-AFRICAL Reportage complet sur la durabilité pour les sociétés minières.

• Objectifs obligatoires de réduction des émissions de carbone: 30% d'ici 2030
• Exigence de réduction de l'utilisation de l'eau: 25% d'ici 2025
• Target d'intégration d'énergie renouvelable: 40% de la consommation totale d'énergie

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs économiques

Volatilité des prix de l'or

Les revenus de Harmony Gold sont directement corrélés avec les fluctuations des prix de l'or. Au quatrième trimestre 2023, les prix de l'or variaient entre 1 900 $ et 2 089 $ l'once.

Année	Prix ​​d'or moyen (USD / oz)	Impact sur les revenus
2023	$1,940	2,45 milliards de dollars
2022	$1,800	2,26 milliards de dollars

Coûts opérationnels

Coûts d'exploitation souterraine de niveau profond Pour l'harmonie, l'or en 2023 était d'environ 1 050 $ l'once d'or produit.

Taux de change

Paire de devises	Taux de change (2023)	Impact sur les revenus
ZAR / USD	1 USD = 18,65 ZAR	± 3,2% de variation des revenus
ZAR / EUR	1 EUR = 20,33 ZAR	± 2,7% Variation des revenus

Incertitudes économiques mondiales

L'investissement du secteur minier en 2023 a montré:

• Investissement total mondial minier: 92,4 milliards de dollars
• Dépenses en capital de Harmony Gold: 287 millions de dollars
• Budget d'exploration: 45,6 millions de dollars

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs sociaux

Défis de la main-d'œuvre liés à la pénurie de compétences dans le secteur minier

Depuis 2024, la société Harmony Gold Mining Company est confrontée à des défis de main-d'œuvre importants avec un 12,7% de pénurie de compétences dans les rôles minières critiques. Le secteur minier sud-africain connaît un écart technique d'environ 23 000 professionnels spécialisés.

Catégorie de compétences	Pourcentage de pénurie actuel	Impact estimé de la main-d'œuvre
Génie géologique	16.4%	487 Positions non remplies
Spécialistes de la technologie minière	14.2%	356 rôles vacants
Techniciens de forage avancés	11.9%	276 Positions ouvertes

Relations avec la communauté et licence sociale pour fonctionner

Le budget de l'engagement communautaire de Harmony Gold pour 2024 est R127,6 millions, ciblant le développement durable dans les communautés minières à travers l'Afrique du Sud.

Zone d'investissement communautaire	Budget alloué	Reach bénéficiaire
Soutien à l'éducation	42,3 millions de rands	8 750 étudiants
Développement des infrastructures	35,9 millions de rands	12 municipalités locales
Programmes de formation aux compétences	49,4 millions de rands	1 620 membres de la communauté

Dynamique des syndicats et risques potentiels

L'appartenance actuelle de l'Union chez Harmony Gold représente 87,6% de la main-d'œuvre totale. Risque de grève potentielle estimé à 42% de probabilité pour 2024, avec une perturbation moyenne de production potentielle moyenne de 17,3 jours.

Organisation syndicale	Pourcentage d'adhésion	Statut de négociation
Union nationale des mineurs	62.4%	Négociations salariales en cours
Association des mineurs et syndicat de construction	25.2%	Contrat collectif en attente

Sécurité au travail et bien-être des employés

Les dépenses de sécurité de Harmony Gold pour 2024 sont R342,6 millions. Le taux de blessures au travail se situe à 1,2 incidents par 200 000 heures de travail.

Catégorie d'investissement de sécurité	Allocation budgétaire	Résultat attendu
Équipement de protection personnelle	R87,4 millions	Couverture 100% de la main-d'œuvre
Programmes de formation à la sécurité	129,2 millions de rands	4 750 employés formés
Technologie de sécurité avancée	126 millions de rands	Réduire les taux d'incident de 22%

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs technologiques

Technologies d'exploitation souterraine avancées pour améliorer l'efficacité d'extraction

Harmony Gold a investi 1,2 milliard de rands dans les technologies miniers souterraines avancées au cours de l'exercice 2023. L'entreprise déployée Systèmes de forage automatisés À travers ses opérations, réalisant une amélioration de 22% de l'efficacité d'extraction.

Type de technologie	Investissement (ZAR)	Amélioration de l'efficacité
Systèmes de forage automatisés	450 millions de rands	22%
Équipement robotique souterrain	350 millions de rands	18%
Cartographie géologique dirigée par l'IA	400 millions de rands	15%

Implémentation de systèmes de surveillance et d'automatisation numériques

Harmony Gold a mis en œuvre des systèmes de surveillance numérique complets sur 7 sites miniers, réduisant les risques opérationnels de 35%. L'entreprise déployée capteurs de surveillance en temps réel couvrant 95% des opérations souterraines.

Système de surveillance	Couverture	Réduction des risques
Réseau de capteurs souterrains	95%	35%
Systèmes de maintenance prédictive	85%	28%

Investissements dans la technologie et l'équipement des mines durables

Harmony Gold a alloué 750 millions de rands aux technologies minières durables en 2023. Les investissements clés comprennent:

• Systèmes de recyclage de l'eau: 250 millions de rands
• Équipement minière économe en énergie: 300 millions de rands
• Technologies de réduction des émissions de carbone: 200 millions de rands

Exploration de l'intégration des énergies renouvelables dans les opérations minières

La société a commis 500 millions de rands à l'intégration des énergies renouvelables, ciblant 40% de consommation d'énergie renouvelable d'ici 2026. L'adoption actuelle des énergies renouvelables est de 22% entre les opérations minières.

Source d'énergie renouvelable	Investissement (ZAR)	Utilisation actuelle	Utilisation cible d'ici 2026
Énergie solaire	250 millions de rands	12%	25%
Énergie éolienne	150 millions de rands	10%	15%

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations strictes sur la sécurité minière

En 2022, Harmony Gold a signalé 6 décès et un taux total de fréquence des blessures de 4,98 par million d'heures travaillées. La société a investi 36,4 millions de rands dans des programmes de formation et d'amélioration en matière de sécurité au cours de l'exercice 2023.

Métrique de sécurité	2022 données	2023 données
Décès	6	4
Taux de fréquence des blessures	4.98	4.52
Investissement en sécurité	R32,1 millions	R36,4 millions

Exigences légales de protection de l'environnement

Harmony Gold a dépensé 124,5 millions de rands pour la conformité et la réhabilitation environnementales en 2023. La société maintient 17 plans de gestion environnementale à travers ses opérations.

Métrique de la conformité environnementale	Valeur
Dépenses environnementales	124,5 millions de rands
Plans de gestion de l'environnement actif	17
Taux de recyclage de l'eau	35.2%

Règlements complexes sur les lois du travail et l'emploi

En 2023, Harmony Gold emploie 35 687 travailleurs, 92% étant des ressortissants sud-africains. La société maintient des accords de négociation collective avec 6 syndicats différents.

Statistiques du travail	Valeur
Total des employés	35,687
Employés sud-africains	32,832 (92%)
Syndicats actifs	6
Salaire annuel moyen	R276 450

Navigation des cadres de conformité au commerce international et à l'exportation

En 2023, Harmony Gold a exporté l'or d'une valeur de 1,84 milliard de dollars, avec 65% des exportations adressées à la Suisse et au Royaume-Uni. La société maintient le respect des réglementations commerciales internationales à travers 12 juridictions différentes.

Exportation de mesures	Valeur
Valeur d'exportation totale	1,84 milliard de dollars
Exportation en Suisse	42%
Exportation vers le Royaume-Uni	23%
Juridictions de conformité	12

Harmony Gold Mining Company Limited (HMY) - Analyse du pilon: facteurs environnementaux

Réhabilitation en cours et fermeture de la fermeture des mines

Harmony Gold a alloué 1,2 milliard de zar pour la réadaptation environnementale et les dispositions de fermeture des mines à partir de 2023. La responsabilité de la réadaptation environnementale de la société s'élève à 3,8 milliards de zar.

Métrique de réadaptation environnementale	Montant (ZAR)
Provision totale de réhabilitation	3,800,000,000
Investissement annuel de réadaptation	1,200,000,000
Superficie réhabilitée	1 250 hectares

Gestion de l'eau et stratégies de conservation

Harmony Gold a mis en œuvre des stratégies complètes de gestion de l'eau, réduisant la consommation d'eau à 0,535 kilolitres par tonne de minerai traité en 2023.

Métrique de gestion de l'eau	Valeur
Consommation d'eau par tonne de minerai	0,535 kilolitres
Total d'eau recyclée	68.3%
Économies d'eau	1,2 million de kilolitres

Réduire l'empreinte carbone et les émissions de gaz à effet de serre

Harmony Gold s'est engagé à réduire les émissions de gaz à effet de serre de 30% d'ici 2030, avec des émissions actuelles à 1,2 million de tonnes d'équivalent CO2 par an.

Métrique des émissions de carbone	Valeur
Émissions annuelles de CO2 actuelles	1 200 000 tonnes
Cible de réduction des émissions	30% d'ici 2030
Investissement d'énergie renouvelable	Zar 450 millions

Mettre en œuvre des pratiques minières durables et des efforts de restauration écologique

Harmony Gold a investi le ZAR 320 millions dans les pratiques minières durables et les projets de restauration écologique dans ses opérations.

Métrique minière durable	Valeur
Investissement de pratiques durables	Zar 320 000 000
Zones de protection de la biodiversité	2 500 hectares
Espèce indigène replantée	75 000 plantes

Harmony Gold Mining Company Limited (HMY) - PESTLE Analysis: Social factors

High unemployment rates in South Africa increase pressure for local employment and community investment.

The persistent, high unemployment rate in South Africa creates significant social and political pressure on large employers like Harmony Gold Mining Company Limited to prioritize local hiring and substantial community investment. The official national unemployment rate stood at a staggering 31.9% in the third quarter of 2025 (Q3 2025), with the expanded unemployment rate, which includes discouraged job-seekers, at an even higher 42.4%. This environment means the company's social license to operate (SLO) is directly tied to its ability to demonstrate tangible economic benefits for its host communities. Failure to meet these expectations can lead to operational disruptions, community protests, and increased regulatory scrutiny.

This pressure is a core element of the social environment, requiring a strategic focus on socio-economic development (SED) initiatives. The need for employment is defintely a key factor in all stakeholder engagements.

Labor relations remain sensitive, with wage negotiations impacting the All-in Sustaining Cost (AISC).

While labor relations in the South African mining sector are historically sensitive, Harmony Gold has achieved a significant near-term stability milestone. The company successfully concluded a landmark five-year wage agreement with its five labor unions (including the NUM, UASA, and AMCU) in April 2024, which is effective from July 1, 2024, to June 30, 2029. This long-term agreement provides cost predictability, which is a major benefit for planning. The agreement allows for an average annual increase of approximately 6% over the five-year period, which management has stated is within their planning parameters.

Still, the impact of labor and other inflationary pressures is clear in the company's cost structure. For the fiscal year 2025 (FY25), Harmony Gold's All-in Sustaining Cost (AISC) surged by roughly 20% year-over-year to $1,806 per ounce (oz), with total cash operating costs climbing 19% to $1,499 per oz. Higher labor and electricity costs were key drivers in this increase, highlighting how even planned wage increases contribute to the company's high-cost producer profile.

The company must maintain a Black Economic Empowerment (BEE) ownership level above 30% in South Africa to comply with regulations.

Compliance with the South African government's Broad-Based Black Economic Empowerment (B-BBEE) legislation is non-negotiable for maintaining mining rights. The Mining Charter requires a minimum of 30% ownership by Historically Disadvantaged South Africans (HDSAs). Harmony Gold's compliance is measured through a scorecard, which includes the Ownership element.

The company is actively working to meet and exceed these targets, as evidenced by its proposed B-BBEE transactions in late 2023, which involve a Community Trust and an Employee Stock Ownership Plan (ESOP) Trust. The latest verified data for the financial year ended June 30, 2025 (FY25) shows the company's standing across key B-BBEE elements:

B-BBEE Element (FY25)	Target Score (Points)	Actual Score Achieved (Points)
Ownership	25.00	20.72
Management Control	19.00	13.50
Skills Development	20.00	8.76
Enterprise and Supplier Development	40.00	30.14
Socio-Economic Development	5.00	2.35
Total Score	111.00	75.47

Here's the quick math: The company's total score of 75.47 points resulted in a B-BBEE Status Level 6 for FY25. While the Ownership score is strong, the overall compliance status shows room for improvement in areas like Skills Development to strengthen the social foundation.

Focus on safety culture is paramount; the deep-level nature of operations inherently carries high risk.

Operating some of the world's deepest mines means safety is not just a regulatory issue but a core operational and social risk. The deep-level nature of Harmony Gold's South African mines inherently carries high risk from ground instability and geological pressures. The company's commitment to a 'zero harm' safety culture is a continuous, high-stakes effort.

Recent performance shows both the challenge and the improvement:

• Achieved a fatality-free quarter in the three months ended September 30, 2025 (Q1 FY26).
• South African gold operations reached three-million loss-of-life-free shifts in the September 2025 quarter.
• The Lost-Time Injury Frequency Rate (LTIFR) improved significantly to 4.29 per million hours worked in Q1 FY26, down from 5.57 in the previous corresponding period.
• However, the LTIFR for the nine months ended March 31, 2025 (9MFY25), regressed slightly to 5.76 per million hours worked from 5.55 in the prior year period, showing that safety gains are not always linear.

This improvement in the latest quarter is a strong indicator of successful proactive safety programs and robust infrastructure, which is critical for maintaining production continuity and investor confidence. The goal is simple: safe mines are profitable mines.

Harmony Gold Mining Company Limited (HMY) - PESTLE Analysis: Technological factors

Deep-level mining requires significant investment in cooling and ventilation systems to maintain productivity.

The reality of operating the world's deepest mines, like Mponeng, means technology is less about optional upgrades and more about operational survival. You're dealing with rock temperatures that demand massive, non-negotiable investment in environmental control. For the nine months ended March 31, 2025 (9MFY25), Harmony Gold's total capital expenditure increased by a substantial 31%, reaching R7.625 billion (US$421 million). A significant portion of this growth capital is directly tied to the life-of-mine extension projects at premier deep-level assets like Mponeng and Moab Khotsong.

This CapEx funds the necessary infrastructure-specifically the massive refrigeration and ventilation systems-required to keep working areas at depths exceeding 3,800 meters viable and safe. The company is actively focused on energy management for these systems, including load-shifting their operation to cheaper off-peak periods, which is a smart technological and financial move to mitigate the impact of rising electricity prices on their cost base.

Implementing mechanization and automation to reduce reliance on labor and improve safety is a priority.

The push for mechanization is a dual-purpose strategy: it cuts down on labor costs and, more importantly, drastically improves safety in hazardous deep-level environments. Harmony's commitment to its Thibakotsi safety strategy is showing tangible results, achieving a loss-of-life free quarter in Q1FY26 and bringing the Lost Time Injury Frequency Rate (LTIFR) down to 4.29, which is below the target of 5.00 for the second consecutive quarter.

The technology deployed is concrete, not just conceptual. They are moving beyond simple monitoring to active, real-time control systems. One clean one-liner: Automation makes the dangerous work safer.

• High-Precision GPS: Deployed on drills, excavators, and dozers for accurate operations and enhanced operator awareness, reducing the need for surveyors in operational areas.
• Operator Alertness Systems: Fitted to the haul truck, bus, and logistics fleets to detect driver fatigue and distraction, using haptic (vibration) and audible warnings.
• Collision Avoidance Systems: Installed on all mining lease equipment, providing sophisticated traffic awareness and geofenced warning zone alerts to prevent accidents.

Use of data analytics and real-time monitoring helps optimize blast cycles and ore pass management.

Data analytics is the engine that turns raw data from deep underground into actionable decisions. The goal is to move from reactive reporting to predictive operations. While specific blast cycle optimization metrics aren't public, the overall impact of real-time monitoring on operational efficiency is clear in the recovered grades. For the nine months to March 31, 2025, underground recovered grades increased by 2% to 6.28 grams per tonne (g/t), with the full-year FY2025 guidance revised upwards to be above 6.00g/t. Mponeng's steady, high recovered grades of 10.54g/t in Q1FY26 demonstrate the precision this technology enables.

Beyond gold extraction, this real-time control extends to environmental management. Harmony commissioned a 10 megalitre per day feed capacity reverse osmosis water treatment plant at Tau Tona in July 2025. This is a perfect example of using advanced process control technology to manage a critical operational constraint-water-efficiently and sustainably.

New processing technologies are needed to efficiently extract gold from ultra-deep and lower-grade reserves.

The company's technological strategy for processing is two-pronged: maximize high-grade deep-mine output and find value in low-grade surface reserves. For the ultra-deep reserves, the focus remains on high-grade mining, as evidenced by the grade increase. For lower-grade material, the long-term opportunity lies in surface re-mining projects, which contain an estimated 5.7 million ounces of gold locked in Free State tailings dams. Extracting this gold efficiently requires new processing technologies, such as advanced flotation or bio-oxidation, to improve recovery rates from the historically discarded, low-grade material.

A major strategic technological pivot in FY2025 is the expansion into copper, a future-facing commodity. Harmony approved the development of the Eva Copper Project in Australia in November 2025. This project, which will produce approximately 60,000 tonnes per annum (tpa) of copper and 19,000 ounces per annum of gold over its life-of-mine, represents a significant investment in new-generation processing technology for a different metal. The estimated project capital expenditure for Eva Copper is between $1.55 billion and $1.75 billion, phased over a three-year construction period. This shows a defintely strong commitment to diversifying its technological and operational portfolio.

Technological Investment Area	FY2025/9MFY25 Key Metric	Impact/Rationale
Total Capital Expenditure (9MFY25)	Increased by 31% to R7.625 billion (US$421 million)	Mainly driven by deep-level extension projects (Mponeng, Moab Khotsong) which require significant cooling and ventilation infrastructure.
Underground Recovered Grade (9MFY25)	Increased to 6.28 g/t (FY2025 guidance >6.00 g/t)	Demonstrates success of high-grade focus and precision mining enabled by real-time data and monitoring.
Safety Performance (Q1FY26 LTIFR)	4.29 (Below target of 5.00)	Reflects the success of mechanization and automation tools like Collision Avoidance and Operator Alertness Systems in reducing human risk.
Water Treatment Technology (Q1FY26)	10 megalitre per day Reverse Osmosis plant commissioned at Tau Tona	Concrete example of advanced process control for environmental and resource management.
New Processing/Diversification (Eva Copper Project CapEx)	Estimated $1.55 billion to $1.75 billion (phased over 3 years)	Strategic technological pivot to copper, requiring new processing plant and open-pit mining technology.

Next step: Finance needs to model the impact of the Eva Copper CapEx on the debt structure by end of Q2FY26.

Harmony Gold Mining Company Limited (HMY) - PESTLE Analysis: Legal factors

Compliance with the South African Mine Health and Safety Act is a continuous, non-negotiable operational cost.

The regulatory environment in South Africa, particularly the Mine Health and Safety Act (MHSA), imposes strict, non-negotiable compliance costs that directly impact operational continuity and financial metrics. The human cost is the most severe measure of this compliance, with a reported loss of life of 11 employees in FY25, an increase from seven in FY24. This unfortunate trend led to operational stoppages at several optimized assets, including Tshepong North and Tshepong South, which defintely impacted production volumes.

Still, our overall safety performance showed a slight improvement in the Lost-time injury frequency rate (LTIFR), moving from 5.53 in FY24 to 5.39 in FY25. This shows the internal safety strategy, 'Thibakotsi,' is having some effect, but the zero-harm goal remains elusive. The total cash operating costs for the group in FY25 were R40 266 million (US$2 219 million), a significant portion of which is dedicated to labor, safety training, and the maintenance required to meet MHSA standards.

Here's the quick math on the safety-related improvement in a key health metric:

• New silicosis cases (among employees unexposed to mining dust prior to 2025): Zero (FY25), down from two in FY24.

Environmental liability for mine closure and tailings dam management is a long-term balance sheet obligation.

The long-term legal obligation for environmental rehabilitation and mine closure represents a substantial balance sheet risk that is continually re-evaluated. This is not just an annual expense; it's a multi-decade commitment. The undiscounted value of our land rehabilitation liabilities stood at approximately R8.4 billion in FY24, which serves as a strong proxy for the current FY25 long-term liability, reflecting the massive scale of the required future work.

We manage a total of 84 Tailings Storage Facilities (TSFs) in South Africa alone, plus one in Papua New Guinea, making TSF integrity a critical legal and financial focus. Our annual environmental stewardship expenditure, which covers compliance and progressive rehabilitation, rose sharply to R1.8 billion in FY25 (up from R0.7 billion in FY24), showing increased commitment and regulatory pressure. What this estimate hides is the potential for unforeseen regulatory changes, such as the delayed implementation of new financial provision regulations in South Africa, which could increase the required collateral.

Environmental Liability & Cost Metric	FY25 Value (ZAR)	FY25 Value (USD)
Annual Environmental Stewardship Expenditure	R1.8 billion	~US$99 million
Undiscounted Land Rehabilitation Liability (FY24 Proxy)	R8.4 billion	~US$462 million
FY25 Environmental Fines and Directives	Zero	US$0

Permitting delays for expansion projects, particularly in Papua New Guinea, stall capital deployment.

The Wafi-Golpu copper-gold project in Papua New Guinea (PNG), a 50/50 joint venture with Newmont, is a Tier 1 asset whose development has been significantly stalled by legal and permitting complexities. The main holdup is the finalisation of the Special Mining Lease (SML) and an ongoing legal challenge from local communities regarding the environmental permit for the Deep-Sea Tailings Placement (DSTP) method.

A Supreme Court decision on the environmental permit was expected in July 2025, which is a key milestone for unlocking the project. The CEO stated in June 2025 that the company was aiming to bring the outcomes of finalising minor permit amendments to the market in late August 2025, followed by a final investment decision. The delay also revolves around the PNG government's demand for a potential 30% stake in the project, which adds a layer of complex, long-term legal negotiation to the commercial framework.

Water-use license compliance is strictly enforced in South Africa, affecting operational continuity.

Water-use licensing is one of the most strictly enforced legal areas in South Africa, especially in water-scarce regions where our operations are concentrated. Non-compliance risks operational shutdowns. To mitigate this, we have committed significant capital to water security projects.

For example, capital expenditure for FY25 included the construction of a treatment plant for excess water at the Margaret Shaft, which is likely to be completed in 2025 to offset potable water use at the Mine Waste Solutions Plant. This focus on recycling and treatment is essential for maintaining our social license to operate (SLO). Our efforts are showing results, with South Africa operations achieving a 3.6% reduction in potable water usage during FY24. The fact that we recorded Zero environmental fines and directives in FY25 is a testament to the success of this proactive, capital-intensive compliance strategy.

Harmony Gold Mining Company Limited (HMY) - PESTLE Analysis: Environmental factors

Management of vast tailings storage facilities (TSFs) poses a major long-term environmental and safety risk

You are managing a huge environmental liability, plain and simple. Harmony Gold Mining Company Limited operates a significant portfolio of legacy and active Tailings Storage Facilities (TSFs), totaling 84 TSFs in South Africa and one in Papua New Guinea as of the last fiscal year. The core risk here is long-term geotechnical stability and water contamination, which is why the Global Industry Standard on Tailings Management (GISTM) compliance is critical.

The company's strategy is smart: consolidate and re-mine. For example, at the Mine Waste Solutions (MWS) operation near Klerksdorp, the goal is to reduce the total tailings footprint from a scattered 1,800 hectares to a centralized 900 hectares by building the consolidated Kareerand TSF. This not only frees up land for rehabilitation but also concentrates the environmental impact, making it easier to manage and monitor. The investment is substantial: Harmony allocated R2.3 billion to the Kareerand TSF expansion project across FY24 and FY25, with a further R1.2 billion planned for Phase 2 completion by the end of FY25.

This is a long-term capital commitment, but it's defintely the right move for derisking the business. One consolidated, well-engineered facility is always better than a multitude of older, scattered sites.

High energy consumption from deep-level ventilation systems drives the company's carbon footprint

The deep-level nature of South African gold mining means massive energy consumption, primarily for ventilation and cooling, which directly translates to high Scope 2 emissions from purchased electricity. Harmony has set an aggressive, Science Based Targets initiative (SBTi) validated goal to reduce absolute Scope 1 and 2 Greenhouse Gas (GHG) emissions by 63% by FY36, using an FY21 base year. This is a 1.5°C-aligned target.

To hit this, you need to change the energy mix. In FY24, the total operational GHG emissions (Scope 1 and 2) stood at 4,265,244 metric tons of CO2 equivalent (tCO₂e). The investment in renewable energy is a direct action to lower this number, with a plan to have 167 MW of solar power in place by the end of FY25. The second phase of this solar rollout, a 137 MW project, is expected to cost about R1.5 billion but will deliver an estimated R500 million in annual cost savings and generate 340 GWh of energy per year. This is a clear case where environmental action also drives economic efficiency.

Metric	FY24/FY25 Data	Target/Context
Total Operational GHG Emissions (Scope 1 & 2)	4,265,244 tCO₂e (FY24)	Target: 63% reduction by FY36 (from FY21 base)
Planned Solar Capacity	167 MW by end of FY25	Phase 2: 137 MW, R1.5 billion cost, R500 million annual savings
Care and Maintenance and Rehabilitation Costs	R281 million (FY24)	Excludes credit from trust fund, covers closed shafts and plants

Acid mine drainage (AMD) from closed and dormant shafts requires costly, ongoing water treatment

Acid Mine Drainage (AMD) is a critical legacy issue, particularly in South Africa where deep-level mining exposes sulfide-bearing rock to air and water. This creates acidic runoff that must be managed perpetually. While a specific line item for AMD treatment is often bundled, the total expenditure on managing these long-term liabilities is significant.

The company reported an expenditure of R281 million in FY24 for Care and Maintenance and Rehabilitation, which covers activities at closed shafts and plants, directly addressing the environmental fallout of past operations. This cost is non-negotiable and represents the ongoing financial burden of environmental stewardship for closed and dormant assets. It's a perpetual cost that you must factor into your long-term valuation models, as it directly impacts your discounted cash flow (DCF) model's terminal value.

Increased stakeholder scrutiny on biodiversity and rehabilitation plans, especially for new projects like Wafi-Golpu

The Wafi-Golpu project in Papua New Guinea presents a high-stakes environmental challenge that has drawn intense stakeholder scrutiny. The plan to use Deep Sea Tailings Placement (DSTP) involves piping an estimated 360 million metric tons of tailings over the mine's anticipated 28-year lifespan into the Huon Gulf via a 103-kilometer pipeline. This is the main point of contention.

The concern is not just the volume, but the location. The Huon Gulf is part of the Coral Triangle, a global hub of marine biodiversity. Opponents of the plan have pointed to the Wafi-Golpu Joint Venture's own Environmental Impact Statement (EIS), which suggests that up to 40% of the tailings may not reach the intended deep-sea floor, potentially impacting marine life and local fisheries that support an estimated 400,000 people. This is a major social and environmental risk that has been tied up in the Papua New Guinea Supreme Court, with a decision on the environmental permit being a key risk factor for the project's advancement.

The key risk is the potential for project delays or the need for a costly pivot to an alternative tailings solution if the DSTP plan is rejected or stalled by the ongoing legal challenges and community opposition.

Next Step: Operations: Finalize the Wafi-Golpu risk register, specifically modeling the cost and schedule impact of a mandated shift from DSTP to a land-based TSF option by the end of Q1 FY26.