Job Cuts Will Be Inevitable—AngloGold


Mining giant Anglogold Ashanti has stated that an imminent retrenchment of workers is inevitable even though it contests figures put out by the November 6th edition of the Daily Graphic Newspaper. The paper had quoted that Anglogold was set to lay of some 5300 mine workers at its Obuasi mines by November 14th.

It explained that the company’s decision was informed by falling gold prices and unbearable overhead costs which had compelled it to factor in a planned shutdown of the Obuasi mine.

However speaking on Radio Ghana’s news analysis program, “Behind the News,” Vice President of Corporate Affairs at Anglogold Ashanti, Kwame Addo Kuffour indicated that the numbers published in the media were not from the management of the company.

“The numbers we are seeing in the papers are untrue and we did not put those figures out because we are still engaging government, stakeholders and regulators around the sustainable way forward for the mines,” he cleared.

He stated that as off Thursday, the company had three thousand one hundred (3,100) workers and contractors on site and operations were still ongoing.

He added, “In the year to September, the mine produced a hundred and ninety five thousand (195,000) ounces and in October it produced almost 18000 ounces.”

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He was however quick to add that the mines like other large mining companies around the world was going through very hard times and needed to take drastic steps which would include staff downsizing.

“It’s an old mine of a hundred and seventeen years and there are lots of issues around infrastructure, high costs, operational challenges and with gold prices of a less than 1,150, there is an issue to address,” he explained.

He indicated that discussions are currently ongoing with government and other stakeholders on an amended program to its mining operations

He said results of the ongoing deliberations will inform any changes to be effected to the nature of business of Anglogold Ashanti.

Mr. Kwame Addo Kuffour however allayed that as “a responsible employer,” the company will in the event of the plan being finalized, provide the alternatives and guidance for its staff who will be affected.

“We have had a few job fairs on site already and we’ve had financial institutions visit to ensure that in the event of people receiving their packages, these monies are invested judiciously.” he disclosed.

He was emphatic, “our workers have been with us for many years and the last thing we would want is to find some in difficulties in the event of leaving us”.

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