3,100 Workers Sacked In AngloGold Ashanti Restructuring

AngloGold Ashanti Ltd, (AGA), has disclosed that it is restructuring the operations of the mine to meet modern standard to be able to operate at maximum capacity to deliver a significant and sustainable contribution to all its stakeholders.

The mine is 117 years old and it has reflected in poor production as a result of aged infrastructure.

Mr. David Noko, Executive Vice President of Sustainability at Anglogold, who disclosed this in Accra, Wednesday, at a stakeholder’sforum, said a team is currently undertaking a feasibility studies on the prospects of the new phase of the AngloGold mining concession and is expected to complete on the first quarter of 2015.

According to him, the fall in Gold price and worsening operational challenges required the current intervention to improve the prospect of the Obuasi mine’s long term sustainability.

He averred that “the ore body is delivering below its potential and the restructuring is very important because any mine that is over 100 years needs new designs, branding to be able to accommodate the new generation of equipment’s”.

Mr. David Noko denied news that AngloGold Ashanti will be shut down for two years to allow for restructuring.

“We are not planning to close the mine. There are no plans to close the mine and there should be no such illusion that the mine closing. We are only limiting the operation of the mine so that we will be able to do the feasibility studies”, he said.

Meanwhile AngloGold has laid off 3,100 workers in the last two years in its phases of retrenchment due to limited operations.

Senior Vice President of Human Resource, Steve Rickman said“we still have 1,300 employees at work and 1,100 third party contractors. However the 3,100 sacked employees have received severance packages in line with an agreement reached with the Ghana Mine Workers Union and many on the basis of mutual agreement with the affected employees”.

AngloGold said that the sacked workers were educated to take up entrepreneurship and also on the need to invest their compensations wisely.

The mining company disclosed that over the past decades, it has contributed over $577m in corporate taxes, royalties, dividend, customs, duties and employee taxes to the economy.

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