2 | Other expenses – net | | |
| | Foreign exchange gain–net (a) | – | (139) |
| | Profit on sale of property, plant and equipment (b) | (2) | (1) |
| | Bad debts provision expense (c) | 475 | 217 |
| |
Bad debts written-off (d) | 10 | 7 |
| | Other expenses–net | 10 | 41 |
| | Total other expenses – net | 493 | 125 |
| | | | | |
| | (a) | Included in the 2009 financial year is R205 million exchange gains on the forward contract arranged by Harmony for the receipt of the proceeds for the Randfontein Cooke transaction. Refer to note 7(a)(iii) in the group financial statements. Also included were foreign exchange losses of R66 million relating to the repayment of the intercompany loan by Harmony Gold (Australia) (Proprietary) Limited. | | |
| | | | | |
| | (b) | Profit on sale of property, plan and equipment relates to scrap sales. | | |
| | | | | |
| | (c) | (i) | The bad debts provision expense mainly relates to the provision for irrecoverable loans to associates and subsidiaries. The increase in the provision in the 2010 financial year relates to the following: | | |
| | | | | | |
| | | | The loan of R482 million to ARMGold/Harmony Joint Investment Company (Proprietary) Limited (the Investment Company) was impaired. This was as a result of the impairment of the investment in Pamodzi Gold Limited (Pamodzi) held by the Investment Company. Refer to note 14 for more detail. | | |
| | | | | | |
| | | (ii) | Included in the total for the 2009 financial year are provisions for the following loans: Pamodzi: R116 million Harmony Gold (Marketing) (Proprietary) Limited: R25 million Harmony HIV/Aids Company (Proprietary) Limited: R10 million Musuku Benefication Systems (Proprietary) Limited: R57 million Refer to note 13 and 14. | | |
| | | | | |
| | (d) |
Trade debts and loans of R10 million were written-off as the company considered the debt irrecoverable. | | |