AngloGold Ashanti's Mponeng Mine Resumes Production
(Johannesburg) - AngloGold Ashanti is pleased to report that normal operations have resumed at its Mponeng mine in South Africa following successful engagement with employee and trade union representatives over the past week.
All mining and processing at Mponeng was suspended on November 6, after two underground sit-ins by a group of workers and some vandalism to property led to management concerns that safe working conditions could not be assured. Talks between AngloGold Ashanti's South Africa regional management and representatives of unions and associations in the intervening period culminated in the agreement by all parties of a set of guiding principles that will govern safe work and labour relations at Mponeng in future.
This document, signed by the local branches of the National Union of Mineworkers, Solidarity, The United Association of South Africa and worker representatives of The Association of Mineworkers and Construction Union at a public meeting on 10 November, covers a series of issues including: the importance of safety; freedom of association for all workers; transparency and honesty in all interactions; respect for rule of law and rejection of intimidation; a collective commitment to effective dispute resolution; and acknowledgement of the sanctity of collective bargaining. The return to work at Mponeng was based on the same wages and working conditions applicable at the company's other South African operations.
"This is an important set of guiding principles, drafted and agreed between AngloGold Ashanti and a diverse group of labour representatives," Mike O'Hare, AngloGold Ashanti's executive vice president of South Africa, said. "These principles provide a good foundation for a constructive relationship into the future which is essential for all stakeholders given the long-term nature of this business."
With the successful restart of Mponeng, all six of AngloGold Ashanti's underground mines in South Africa, as well as its surface operations, are now operating and ramping up to full production. As discussed at the third-quarter results presentation on 8 November, AngloGold Ashanti will evaluate underground conditions in reviewing the time needed for Mponeng's production build-up, before releasing cost and production guidance for the fourth quarter.
About AngloGold Ashanti's South African Operations
AngloGold Ashanti's South African operations accounted for approximately 32% of total group production during the first half of the year. Approximately 35,000 people are employed across AngloGold Ashanti's South African operations. This figure is inclusive of contractors and those working on two major capital projects under way at the Moab Khotsong and Mponeng mines.
AngloGold Ashanti is a member of the gold industry's collective wage bargaining unit at the Chamber of Mines and as such is committed to addressing demands regarding pay and other substantive issues through this framework. At present, the gold industry is in the second year of a two-year wage agreement with the latest increases, ranging from 8% to 10%, awarded to the workforce in July 2012, under the agreement reached in 2011. A similar increase was awarded last year. South Africa's annual Consumer Price Inflation was 5% in August 2012. In addition, under the auspices of the Entry Level Task Team established by the Chamber of Mines, major gold producers and the recognised unions and associations during the 2011 wage talks, additional improvements to the current pay structure were offered to workers on October 18. A summary of this latest offer, agreed by the members of the Chamber of Mines, the National Union of Mineworkers, Solidarity and the United Association of South Africa, is contained in AngloGold Ashanti's press release dated Friday 28 October.
SPONSOR: UBS South Africa (Pty) Limited
Statement issued by AngloGold Ashanti, November 14 2012
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