Harmony Gold — one of the world's largest gold mining companies — has raised R979-million to reduce its debt.

In a statement on Monday, the company said it had raised the money by selling 10.5-million new shares.

"In line with Harmony's stated intention to have zero net debt by June 2009, the proceeds will primarily be used to reduce debt levels."

Harmony said it had repaid R1.25-billion of the R2-billion Nedbank debt which was repayable by December 2008.

"The Nedbank loan facility of R750-million is now repayable by December 2009," the company said.

In 2008, Harmony produced 1.55-million ounces of gold.

The group's operations are located mainly in South Africa's Witwatersrand Basin.

Sapa

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