AngloGold Ashanti Suspends Mponeng Operations
(Johannesburg) - Following a second sit-in by dayshift employees yesterday at AngloGold Ashanti's Mponeng mine, management has again been forced to halt mining and processing activity. The purported reason for these sit-ins relate to the timing of the payment of a safety incentive, planned for tomorrow, 7 November.
These sit-ins follow the unprotected strike, which started on 25 September and did not end as hoped on 26 October when employees returned to work. Since then, a strike, a series of underground sit-ins, acts of vandalism and threats of violence have prevented the mine from operating normally.
AngloGold Ashanti has been placed in a position where it cannot continue allowing employees to proceed to work, given that the safety of employees and underground assets cannot be assured. Employees will receive no pay while this situation persists.
Management intends to continue engagement with a wide range of employee representatives and will seek assurances that there will not be a repeat of recent events before reassessing the situation. AngloGold Ashanti will also cooperate fully with authorities to ensure criminal acts are investigated and internal disciplinary procedures followed where necessary.
Meanwhile, work has continued as normal at AngloGold Ashanti's remaining South African mines: Savuka and TauTona, in the West Wits region, and Great Noligwa, Kopanang, Moab Khotsong, Mine Waste Solutions and the Surface Operations, all in the Vaal River region. These operations continue the process of ramping up to full production.
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. Prior to this dismissal process, approximately 35,000 people were 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. Under normal operating conditions, the Vaal River region typically accounts for about 40% of AngloGold Ashanti's South African gold production and all of the group's uranium production. The West Wits accounts for the balance.
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 6 2012
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