SA rand					US dollar
2009	2010	Figures in million			2010	2009
		29	Borrowings
			Unsecured borrowings
32	–		Africa Vanguard Resources (Proprietary) Limited (a)		–	4
32	–		Total unsecured non-current borrowings		–	4
			Secured borrowings
–	–		Nedbank Limited (b)		–	–
224	–		Liability amount		–	29
(224)	–		Less: current portion		–	(29)
78	59		Westpac Bank (c)		8	10
106	91		Liability amount		12	14
(28)	(32)		Less: current portion		(4)	(4)
–	922		Nedbank Limited (d)		121	–
–	1 110		Principal amount		146	–
–	(11)		Less: unamortised issue costs		(2)	–
–	(177)		Less: current portion		(23)	–
78	981		Total secured non-current borrowings		129	10
110	981		Total non-current borrowings		129	14
252	209		Total current portion of borrowings		27	33
362	1 190		Total borrowings		156	47
			(a)	The loan to AVRD from its holding company African Vanguard Resources (Proprietary) Limited has been derecognised during the year. Refer to note 26(f). The loan was unsecured and interest free.
			(b)	On 30 July 2003, AVRD partially funded the purchase of an undivided 26% share of the mining titles relating to the Doornkop South Reef project, with a R140 million (US$19.1 million) Nedbank term loan facility. This facility to AVRD was guaranteed by Harmony and certain of its subsidiaries. As a result of this guarantee and other factors, the company was required to consolidate AVRD into the group.
				On 31 March 2010, the company settled this facility as part of the purchase consideration. Refer to note 26(f). Interest on the loan facility accrued at a variable rate equal to JIBAR plus 2% and was payable on settlement of the loan amount. Interest accrued and capitalised during the year, up to settlement date, amounted to R18 million (US$2.2 million) (2009: R30 million (US$3.3 million)).
				Following the settlement of the loan facility Harmony is no longer required to consolidate AVRD as part of the group.
			(c)	In July 2007, Morobe Consolidated Goldfields (MCG) entered into a finance lease agreement with Westpac Bank for the purchase of mining fleet to be used on the Hidden Valley project.
				During the financial year 2009, MCG sold 50% of the finance lease liability to Newcrest in terms of the Master Purchase and Farm-In agreement.
				Interest is charged at US – LIBOR plus 1.25% per annum. Interest is accrued monthly and lease instalments are repayable quarterly terminating 30 June 2013. The mining fleet financed is used as security for these loans.
				The future minimum lease payments are as follows:
30	33			Due within one year	4	4
36	40			Due between one and two years	5	5
44	20			Due between two and five years	3	6
110	93				12	15
(4)	(2)			Future finance charges	–	(1)
106	91				12	14
			(d)	On 11 December 2009, the company entered into a loan facility with Nedbank Limited, comprising a term facility of R900 million (US$119.4 million) and a revolving credit facility of R600 million (US$79.6 million). The facility was utilised to fund the acquisition of the Pamodzi FS assets (refer to note 16) as well as the group’s major capital projects and working capital requirements. Interest accrues on a day to day basis over the term of the loan at a variable interest rate, equal to 3 month JIBAR plus 3.5%. Interest is repayable quarterly.
				The term facility is repayable bi-annually in equal instalments of R90 million (US$11.8 million) over five years. The revolving credit facility is repayable after three years. The term facility is fully drawn and R300 million (US$40.5 million) was drawn on the revolving credit facility.
			(e)	On 12 November 2009, the Australian operations raised a new loan with BMW Finance of R27 million (US$3.6 million) for insurance premium funding. A deposit of R5 million (US$0.7 million) was paid. The loan bore interest at 6.1% and was repayable monthly in equal instalments of R2.8 million (US$0.4 million) with the last instalment paid in June 2010.
			The exposure of the group's borrowings to changes in interest rates and contractual repricing is as follows:
78	1 190		Variable		156	10
252	–		Current		–	33
–	–		Between 1 to 2 years		–	–
–	–		Between 2 to 5 years		–	–
32	–		Over 5 years		–	4
362	1 190		Total borrowings		156	47
21.6%	100.0%		Variable		100.0%	21.6%
69.6%	0.0%		Current		0.0%	69.6%
0.0%	0.0%		Between 1 to 2 years		0.0%	0.0%
0.0%	0.0%		Between 2 to 5 years		0.0%	0.0%
8.8%	0.0%		Over 5 years		0.0%	8.8%
100.0%	100.0%		Total borrowings		100.0%	100.0%
			The maturity of borrowings is as follows:
252	209		Current		27	33
35	215		Between 1 to 2 years		28	4
43	766		Between 2 to 5 years		101	6
32	–		Over 5 years		–	4
362	1 190		Total borrowings		156	47
			The effective interest rates at balance sheet date were as follows:
			Africa Vanguard Resources (Proprietary) Limited (a)#		0.0%	0.0%
			Nedbank Limited (b)*		0.0%	11.9%
			Westpac Bank (c)		2.0%	2.0%
			Nedbank Limited (d)		10.1%	0.0%
			BMW Financing (e)*		0.0%	0.0%
			# Derecognised as AVRD is no longer a SPE
			* Loan repaid in full
			Other borrowings
			The level of Harmony’s borrowing powers, as determined by its Articles of Association, shall not except with the consent of Harmony’s general meeting, exceed R40 million or the aggregate from time to time of the issued and paid-up share capital of the company, together with the aggregate of the amounts standing to the credit of all distributable and non-distributable reserves (including minority interests in subsidiary companies and provisions for deferred taxation) and any share premium accounts of the group.