11 | Restricted investments | | |
| | | | |
| | Investments held by Environmental Trust Fund (a) | 225 | 212 |
| | – | Fair value through profit or loss equity-linked deposits | 177 | – |
| | – | Held-to-maturity call deposits | 48 | 212 |
| | Investments held by Social Trust Fund (b) | 40 | 43 |
| | Total restricted investments | 265 | 255 |
| | | | |
| | (a) | The environmental trust funds are irrevocable trusts under the company's control. Contributions to the trust are invested in interest-bearing short term investments or medium term equity-linked notes issued by commercial banks that provide guaranteed interest and additional interest or growth linked to the growth of the Shareholder Weighted Top 40 index (SWIX 40) of the JSE. The equity-linked notes are designated fair value through profit or loss investments and recorded at fair value whilst the interest-bearing short term investments are classified as held-to-maturity and recorded at amortised cost. These investments provide for the estimated cost of rehabilitation at the end of the life of the group's mines. Income earned on the investments is retained in the funds and reinvested. | | |
| | | | | |
| | | Reconciliation of the movement in the Environmental Trust Fund: | | |
| | | Balance at beginning of year | 212 | 190 |
| | | Fair value gain | 4 | – |
| | | Interest accrued | 9 | 22 |
| | | Balance at end of year | 225 | 212 |
| | | | | |
| | (b) |
The social trust fund is an irrevocable trust under the company's control. In terms of an agreement signed on 3 November 2003, the company has undertaken to make donations to The Harmony Gold Mining Company Social Plan Trust over a period of 10 years. An initial donation of R18.5 million was made during the 2004 year. The balance will be donated in instalments of R3.5 million per annum with the final instalment to be made in 2013. The purpose of the Trust is to fund the social plan to reduce the negative effects of restructuring on the company's workforce, to put measures in place to ensure that the technical and life skills of the company's workforce are developed and to develop the company's workforce in such a manner to avoid or minimise the effect of job losses and a decline in employment through turnaround or redeployment strategies. | | |
| | | | | |
| | | Reconciliation of the movement in the Social Trust Fund: | | |
| | | Balance at beginning of year | 43 | 36 |
| | | Contributions made | 4 | 4 |
| | | Interest accrued | 3 | 4 |
| | | Claims paid | (10) | (1) |
| | | Balance at end of year | 40 | 43 |