AngloGold cites heavy losses as reason for possible job cuts

The company says the possible 8,500 job cuts are part of its effort to improve production and cost base of its South African business.

South African miners. Picture: AFP.

JOHANNESBURG – AngloGold Ashanti says its South African gold mining operations have experienced heavy and ultimately unsustainable losses which now threaten over 8,000 jobs.

The company says the possible job cuts are part of its effort to improve production and cost base of its South African business.

It says the move is necessary to safeguard employment at its viable business units.

The mining company says its talks with the Commission for Conciliation, Mediation and Arbitration (CCMA) and organised labour limit the impact of the possible retrenchments.

Spokesperson Chris Nthinte said: “We will enter into a CCMA facilitated process to discuss ways of mitigating job losses and looking at options for preserving the bulk of our South African production base, and returning it to profitability.”

Nthite added: “The loss-making operations have necessitated this restructure and as a result, we are going to embark on this consultative process with organised labour and our employees.”

AngloGold shares have extended losses to 4% off the back of Wednesday's announcement.