Harmony Gold Mining Company Limited (HMY): Análise de Pestle [Jan-2025 Atualizada]

No complexo mundo da mineração global, a Harmony Gold Mining Company Limited (HMY) navega em um labirinto de desafios que se estendem muito além da mera extração de ouro. Desde as profundezas das minas subterrâneas da África do Sul até as intrincadas paisagens das estruturas regulatórias internacionais, essa análise de pilões revela o ecossistema multifacetado no qual a harmonia opera. RefLe -se em uma exploração abrangente dos fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa, revelando a intrincada dança de sobrevivência e sustentabilidade em uma das indústrias mais exigentes do mundo.

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores Políticos

Ambiente regulatório da indústria de mineração sul -africana

A Lei de Desenvolvimento de Recursos Minerais e Petrolíferos (MPRDA) exige que as empresas de mineração obtenham direitos de mineração. A partir de 2024, o ouro da harmonia deve cumprir com 26 Requisitos regulatórios específicos para licenciamento operacional.

Aspecto regulatório	Requisito de conformidade	Impacto no ouro da harmonia
Direitos de mineração	Renovação obrigatória a cada 5 anos	Requer processo administrativo contínuo
Regulamentos ambientais	Mandatos estritados de reabilitação	Custo estimado de conformidade: R350 milhões anualmente

Empoderamento Econômico Negro (Bee) Compliance

Harmony Gold deve manter Propriedade mínima de abelhas de 26% De acordo com os códigos de empoderamento econômico negro de base ampla (BBEE).

• Propriedade atual de abelhas: 32,4%
• Investimento anual em fornecedores de propriedade negra: R1,2 bilhões
• Representação da gestão negra: 54,7% no nível executivo

Instabilidade política em regiões de mineração

As tensões políticas nas províncias do estado livre e do noroeste afetam diretamente as operações de mineração. Greves trabalhistas em 2023 resultaram em 17 dias de interrupção de produção.

Província	Índice de Risco Político	Dias de interrupção operacional
Estado livre	High (7.2/10)	12 dias
Noroeste	Moderado (5.6/10)	5 dias

Pressão do governo para mineração sustentável

Mandados do governo da África do Sul Relatórios abrangentes de sustentabilidade para empresas de mineração.

• Alvos obrigatórios de redução de emissão de carbono: 30% até 2030
• Requisito de redução de uso de água: 25% até 2025
• Alvo de integração de energia renovável: 40% do consumo total de energia

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores econômicos

Volatilidade do preço do ouro

A receita da Harmony Gold se correlaciona diretamente com as flutuações dos preços do ouro. A partir do quarto trimestre de 2023, os preços do ouro variaram entre US $ 1.900 e US $ 2.089 por onça.

Ano	Preço médio de ouro (USD/oz)	Impacto de receita
2023	$1,940	US $ 2,45 bilhões
2022	$1,800	US $ 2,26 bilhões

Custos operacionais

Custos de mineração subterrâneos de nível profundo Para o Harmony Gold em 2023, foi de aproximadamente US $ 1.050 por onça de ouro produzido.

Taxas de câmbio

Par de moeda	Taxa de câmbio (2023)	Impacto na receita
Zar/USD	1 USD = 18,65 ZAR	± 3,2% variação de receita
ZAR/EUR	1 EUR = 20,33 ZAR	± 2,7% variação de receita

Incertezas econômicas globais

O investimento no setor de mineração em 2023 mostrou:

• Investimento total de mineração global: US $ 92,4 bilhões
• Despesas de capital da Harmony Gold: US $ 287 milhões
• Orçamento de exploração: US $ 45,6 milhões

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores sociais

Desafios da força de trabalho relacionados à escassez de habilidades no setor de mineração

A partir de 2024, a Harmony Gold Mining Company enfrenta desafios significativos da força de trabalho com um 12,7% de escassez de habilidades em funções críticas de mineração. O setor de mineração sul -africano experimenta uma lacuna de habilidades técnicas de aproximadamente 23.000 profissionais especializados.

Categoria de habilidade	Porcentagem de escassez atual	Impacto estimado da força de trabalho
Engenharia Geológica	16.4%	487 posições não preenchidas
Especialistas em tecnologia de mineração	14.2%	356 papéis vagos
Técnicos avançados de perfuração	11.9%	276 posições abertas

Relações comunitárias e licença social para operar

O orçamento de engajamento comunitário da Harmony Gold para 2024 é R127,6 milhões, direcionando o desenvolvimento sustentável em comunidades de mineração em toda a África do Sul.

Área de investimento comunitário	Orçamento alocado	Alcance beneficiário
Apoio à educação	R42,3 milhões	8.750 alunos
Desenvolvimento de infraestrutura	R35,9 milhões	12 municípios locais
Programas de treinamento de habilidades	R49,4 milhões	1.620 membros da comunidade

Dinâmica do sindicato e riscos potenciais de greve

A associação atual do sindicato na Harmony Gold representa 87,6% da força de trabalho total. Risco potencial de greve estimado em 42% de probabilidade para 2024, com interrupção média de produção potencial de 17,3 dias.

Organização da União	Porcentagem de associação	Status de negociação
União Nacional dos Mineiros	62.4%	Negociações salariais em andamento
Associação de mineiros e união de construção	25.2%	Acordo coletivo pendente

Segurança no local de trabalho e bem -estar dos funcionários

As despesas de segurança da Harmony Gold para 2024 são R342,6 milhões. A taxa de lesões no local de trabalho está em 1,2 incidentes por 200.000 horas de trabalho.

Categoria de investimento em segurança	Alocação de orçamento	Resultado esperado
Equipamento de proteção pessoal	R87,4 milhões	100% Cobertura da força de trabalho
Programas de treinamento em segurança	R129,2 milhões	4.750 funcionários treinados
Tecnologia de segurança avançada	R126 milhões	Reduzir as taxas de incidentes em 22%

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores tecnológicos

Tecnologias avançadas de mineração subterrânea para melhorar a eficiência da extração

A Harmony Gold investiu R1,2 bilhões em tecnologias avançadas de mineração subterrânea durante o ano fiscal de 2023. A empresa implantou Sistemas de perfuração automatizados em suas operações, alcançando uma melhoria de 22% na eficiência da extração.

Tipo de tecnologia	Investimento (ZAR)	Melhoria de eficiência
Sistemas de perfuração automatizados	R450 milhões	22%
Equipamento robótico subterrâneo	R350 milhões	18%
Mapeamento geológico acionado por IA	R400 milhões	15%

Implementação de sistemas de monitoramento e automação digitais

A Harmony Gold implementou sistemas abrangentes de monitoramento digital em 7 locais de mineração, reduzindo os riscos operacionais em 35%. A empresa implantou Sensores de monitoramento em tempo real cobrindo 95% das operações subterrâneas.

Sistema de monitoramento	Cobertura	Redução de risco
Rede de sensores subterrâneos	95%	35%
Sistemas de manutenção preditivos	85%	28%

Investimentos em tecnologia e equipamento de mineração sustentável

A Harmony Gold alocou R750 milhões em relação às tecnologias de mineração sustentável em 2023. Os principais investimentos incluem:

• Sistemas de reciclagem de água: R250 milhões
• Equipamento de mineração com eficiência energética: R300 milhões
• Tecnologias de redução de emissão de carbono: R200 milhões

Exploração da integração de energia renovável em operações de mineração

A empresa comprometeu R $ 500 milhões à integração de energia renovável, direcionando o uso de energia renovável de 40% até 2026. A atual adoção de energia renovável é de 22% nas operações de mineração.

Fonte de energia renovável	Investimento (ZAR)	Uso atual	Uso alvo até 2026
Energia solar	R250 milhões	12%	25%
Energia eólica	R150 milhões	10%	15%

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores Legais

Conformidade com regulamentos rigorosos de segurança de mineração

Em 2022, a Harmony Gold relatou 6 mortes e uma taxa total de frequência de lesões de 4,98 por milhão de horas trabalhadas. A empresa investiu R $ 36,4 milhões em programas de treinamento e melhoria de segurança durante o ano fiscal de 2023.

Métrica de segurança	2022 dados	2023 dados
Fatalidades	6	4
Taxa de frequência de lesões	4.98	4.52
Investimento em segurança	R32,1 milhões	R36,4 milhões

Requisitos legais de proteção ambiental

A Harmony Gold gastou R124,5 milhões em conformidade e reabilitação ambiental em 2023. A empresa mantém 17 planos de gestão ambiental em suas operações.

Métrica de conformidade ambiental	Valor
Gasto ambiental	R124,5 milhões
Planos ativos de gestão ambiental	17
Taxa de reciclagem de água	35.2%

Leis trabalhistas complexas e regulamentos de emprego

A partir de 2023, a Harmony Gold emprega 35.687 trabalhadores, sendo 92% sendo cidadãos sul -africanos. A empresa mantém acordos de negociação coletiva com 6 sindicatos diferentes.

Estatísticas trabalhistas	Valor
Total de funcionários	35,687
Funcionários sul -africanos	32,832 (92%)
Sindicatos ativos	6
Salários médios anuais	R276.450

Navegando estruturas internacionais de comércio e conformidade de exportação

Em 2023, a Harmony Gold exportou o ouro no valor de US $ 1,84 bilhão, com 65% das exportações direcionadas à Suíça e ao Reino Unido. A empresa mantém a conformidade com os regulamentos comerciais internacionais em 12 jurisdições diferentes.

Métricas de exportação	Valor
Valor total de exportação	US $ 1,84 bilhão
Exportar para a Suíça	42%
Exportar para o Reino Unido	23%
Jurisdições de conformidade	12

Harmony Gold Mining Company Limited (HMY) - Análise de Pestle: Fatores Ambientais

Reabilitação em andamento e compromissos ambientais de fechamento de minas

A Harmony Gold alocou o ZAR 1,2 bilhão para reabilitação ambiental e disposições de fechamento de minas a partir de 2023. O passivo de reabilitação ambiental da empresa é de Zar 3,8 bilhões.

Métrica de reabilitação ambiental	Quantidade (zar)
Provisão total de reabilitação	3,800,000,000
Investimento anual de reabilitação	1,200,000,000
Área de terra reabilitada	1.250 hectares

Estratégias de gerenciamento e conservação de água

A Harmony Gold implementou estratégias abrangentes de gerenciamento de água, reduzindo o consumo de água para 0,535 quilolitros por tonelada de minério processado em 2023.

Métrica de gerenciamento de água	Valor
Consumo de água por tonelada de minério	0,535 Kiloliters
Água total reciclada	68.3%
Economia de água	1,2 milhão de quilolitros

Reduzindo a pegada de carbono e as emissões de gases de efeito estufa

A Harmony Gold se comprometeu a reduzir as emissões de gases de efeito estufa em 30% até 2030, com emissões atuais em 1,2 milhão de toneladas de equivalente a CO2 anualmente.

Métrica de emissões de carbono	Valor
Emissões anuais de CO2 atuais	1.200.000 toneladas
Alvo de redução de emissão	30% até 2030
Investimento de energia renovável	Zar 450 milhões

Implementando práticas de mineração sustentáveis ​​e esforços de restauração ecológica

A Harmony Gold investiu a ZAR 320 milhões em práticas de mineração sustentável e projetos de restauração ecológica em suas operações.

Métrica de mineração sustentável	Valor
Investimento de práticas sustentáveis	ZAR 320.000.000
Áreas de proteção da biodiversidade	2.500 hectares
Espécies nativas replantadas	75.000 plantas

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.