Fin24 reports that AngloGold Ashanti's (AGA’s) turnaround strategy at its loss-making SA operations, which involves a retrenchment process, aims to protect the business and most of its workers, CEO Srinivasan Venkatakrishnan said on Wednesday.
The gold producer is contemplating cutting 8,500 of its approximately 28,000 employees in SA. Saying this was a difficult decision that followed a period of unsustainable losses, Venkatakrishnan added: “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.” AGA intends to place on care and maintenance the Kopanang mine, in the Vaal River region, and the Savuka section of the TauTona mine, in the West Wits Region. It will also evaluate the feasibility of integrating elements of the TauTona mine into the neighbouring Mponeng mine. The cuts will be subject to a consultation process with organised labour groups, facilitated by the CCMA. Trade union Solidarity warned that this round of retrenchments could be the beginning of a trend in the mining sector due to the negative impact of the 2017 Mining Charter.
- Read this report in full at Fin24
- Read AngloGold’s press statement at AGA online
- Read Solidarity’s press statement at Solidarity online
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