8,500 AngloGold workers may face retrenchment as mine, unions begin talks
The company which employs 28,000 people, said the retrenchment is part of the restructuring of the company’s production and cost base in its SA business.
JOHANNESBURG – Africa's biggest gold miner AngloGold Ashanti is reportedly planning to retrench 8,500 mine workers as part of its restructuring its South African business "to ensure their viability", sending its shares lower.
The company which employs 28,000 people, said the retrenchment is part of the restructuring of the company’s production and cost base in its South African business.
In May, AngloGold reported a 16% drop in first-quarter profit following a decline in South African production and said it was reviewing its South African operations to restore their margin and ensure their recovery.
The company's Chris Nthinte said: “Two of our loss-making mines, which are on average 40 years old, have been making losses for a protracted period of time. And as a result we have entered into a consultative process with employees and organised labour to see how we can mitigate job losses and how we can return the bulk of our South Africa businesses to profitability.”