By GIFT NDOLWANE
JOHANNESBURG – ANGLOGOLD Ashanti is set to retrench some 8 500 employees in South Africa in light of heavy losses incurred recently.
The company has begun a consultation process with employees in terms of section 189 and 189A of the Labour Relations Act.
It said some of our older mines had reached the end of their economic lives several decades after they started production.
Officials said these mines faced systemic challenges, including near-depletion of ore reserves, increasing depth and distance from central infrastructure, declining production profiles, and cost escalations that have continued to outpace both inflation and a subdued gold price.
“This is a difficult decision which follows a period of significant and – ultimately – unsustainable losses, and also the evaluation of the options available to return our South African business to profitability,” AngloGold Ashanti Chief Executive Officer Srinivasan Venkatakrishnan, said.
“It is critical that we act to protect the long-term sustainability of this business and the majority of our workforce. We are mindful of the sensitivity that this situation demands, and are committed to supporting all our employees throughout this process.”
AngloGold Ashanti’s South African business, currently employs about 28 000 people, including contractors.
– CAJ News