Exhibit 15.3



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Audit and risk committee reportThe Companies Act
71 of 2008 (the Act) requires companies to establish an audit committee and prescribes the composition and functions of such a committee. As the mandate of Harmonys audit committee includes monitoring risk management, it is known as the audit
and risk committee.PURPOSEAssist the board in discharging its duties on
safeguarding assetsMonitor the operation of an adequate system of internal control and control processesMonitor the preparation of accurate financial reporting and statements in compliance with all applicable legal and corporate governance requirements and accounting standardsEnsure that significant risks facing Harmony are adequately addressed and support the board in its responsibility for the governance of risk.In terms of the Act, the following members, serving on the committee at 30 June 2013, will be recommended to shareholders for appointment as audit and risk committee members
for the ensuing financial year at the companys annual general meeting:Name Status Date appointedJohn Wetton (chairman) Independent non-executive director 1 July 2011, appointed chairman from 30 November 2011Fikile De Buck Lead independent non-executive director 30 March 2006Simo Lushaba Independent
non-executive director 24 January 2003Modise Motloba Independent non-executive director 30 July 2004Karabo Nondumo Independent non-executive director 3 May 2013The proposed individuals satisfy
the requirements to serve as members of an audit and risk committee as provided for in section 94 of the Act and ensure the committee has adequate and relevant knowledge and experience for the committee to perform its functions. For a detailed
account of the qualifications and expertise of the members of the audit and risk committee, please refer to their résumés on pages 56 to 59.In terms
of the audit and risk committees formal, approved terms of reference and as part of its function in assisting the board to discharge its duties during the period under review, the committee:Met five times during the past financial yearReviewed the companys quarterly resultsEvaluated and considered Harmonys risks and measures taken to mitigate those risksMonitored the internal control environment in Harmony and found it to be effectiveDiscussed
the appropriateness of accounting principles, critical accounting policies, management judgements, estimates and the Hidden Valley impairment. These were found to be appropriateConsidered the appointment of the external auditor, PricewaterhouseCoopers Inc. (PwC), as the registered independent auditor for the ensuing year. The committee noted that the
current designated partner, Faan Lombard, will oversee the Harmony external audit process for another two yearsSatisfied itself through enquiry that the external
audit firm, PwC, was independent from the companyEvaluated the independence and effectiveness of the internal audit function and external auditorsEvaluated and coordinated internal and external audit processesReceived and considered
reports from the external and internal auditorsReviewed and approved internal and external audit plans, terms of engagement and fees as well as the nature and
extent of non-audit services rendered by the external auditorsHeld separate meetings with management and the external auditorsConsidered the appropriateness and expertise of the financial director, Frank Abbott, as well as that of the finance function and found all to be adequate and appropriateConsidered whether IT risks are adequately addressed and that appropriate controls are in place to address these risks.The committee is confident that it complied with its legal, regulatory and other responsibilities assigned by the board under its terms of reference.The internal audit function reports directly to the audit and risk committee but on administrative matters will in future report to the executive: risk management and services
improvement. The internal and external auditors attend the committees quarterly meetings and have unrestricted access to the chairman of the audit and risk committee.On recommendation from the audit and risk committee, the board approved:The annual financial
statements for the year ended 30 June 2013. The audit and risk committee reviewed these to ensure they present a true, balanced and understandable assessment of the financial position and performance of HarmonyThe integrated annual report for the year ended 30 June 2013 in accordance with King III and the JSE Listings RequirementsThe annual report filed on Form 20-F for subsequent submission to the United States Securities and Exchange Commission (SEC)The notice of annual general meeting to be held on 5 December 2013.SHAREHOLDER INFORMATION
AND ADMINISTRATION FINANCIALS GOVERNANCESTRATEGY AND VALUES IN ACTION LEADERSHIP COMMENTARY AND PERFORMANCE GROUP OVERVIEWHARMONY IN BRIEFHarmony Integrated Annual Report 2013 73



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GovernanceAudit and risk committee report
continuedThe audit and risk committee oversees and monitors the governance of information technology (IT) on behalf of the board in accordance with King III and
views this as an important aspect of risk management. Refer to IT governance report included in the supplemental corporate governance report.In 2012, the
committee reported on the comprehensive review of Harmonys compliance with King III completed in consultation with the auditing firm KPMG in July 2012 and highlighted projects under way to further enhance compliance with King III. Below is a
detailed progress report:Reported in 2012: Progress:A formal stakeholder
policy and stakeholder management plan are being reviewed FinalisedAs part of the culture alignment programme, the code of ethics will be reviewed and updated to
align with Harmonys revised value statements. Once reviewed, the revised code will be submitted to the board for approval FinalisedManagement is revising
the roles and responsibilities for various facets of ethics management (eg board committee responsibilities, fraud risk management). This will include a review and potential redesign of the ethics management programme to address integration and
further improve levels of proactive ethical risk management In processAlthough combined assurance was applied throughout the year, the process will be formalised
into a combined assurance framework and plan In process. To be presented for approval in November 2013The job specification for the head of internal audit and
associated key performance indicators will be developed and submitted to the committee for review and approval. This framework will serve as input into the annual assessment of the internal audit function Finalised. A new head of internal audit has
recently been appointed.The risk management strategy and associated framework were revised. The amended framework and roll-out plan will be submitted to the
committee for consideration and approval FinalisedA formalised and functional IT risk register will be enhanced and used by the committee to adequately monitor
the companys IT risks, in line with the revised risk management roll-out plan In processWe will review the current decentralised application of legislative
compliance and consider centralising this and/or integrating it into the risk management function to formally address critical regulatory non-compliance risk. In process. As part of our approved planned internal audit coverage, a review to identify
Harmonys regulatory universe is under way. In addition, Harmonys regulatory compliance strategy will be reviewed to consider the adequacy and effectiveness of the strategy and approach and, if appropriate, identify gaps and provide
guidance and recommendations for improvement. Feedback on the outcome will be provided in the FY14 integrated annual report.The internal audit strategy and
associated approach will be revised to align more closely with a risk-based approach and to address enhanced compliance with the Institute of Internal Auditors (IIA) standards. An updated internal audit charter will be presented to the audit and
risk committee for its consideration and approval. In process. The internal audit charter has been updated and approved.For further compliance with the
requirements of King III, refer to page 64. John Wetton Audit and risk committee chairman25 October 2013 74