AngloGold Ashanti South Africa Operations Update
(Johannesburg) - AngloGold Ashanti employees at the Mponeng mine did not proceed underground for yesterday's day shift due to an illegal sit-in by about 100 of their colleagues and today, a similar situation occurred with about 200 miners at the TauTona mine. In both cases these people, who represent less than 2% and 5% of the respective workforces, returned safely to surface after holding talks with the mines' management.
At Mponeng, in addition to the work interruption underground, a building where miners' headlamps are stored and dispensed was damaged. Inspection and repair of the damaged building will take place over the coming days, with the result that two days of normal work activity have been lost at Mponeng and one at TauTona. Work at both mines is expected to resume as normal at the night shift on Sunday 4 November.
Meanwhile, work has continued as normal at AngloGold Ashanti's remaining South African mines: Savuka, in the West Wits region, and - in the Vaal River region -- the Great Noligwa, Kopanang and Moab Khotsong mines, along with the Surface Operations, which produce gold and uranium. These operations all 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 18 October. 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.
Statement issued by AngloGold Ashanti through the JSE SENS Service, November 2 2012
Click here to sign up to receive our free daily headline email newsletter
