AngloGold Ashanti West Wits Employees Start to Return to Work
(Johannesburg) AngloGold Ashanti is pleased to report that most workers have started returning to the three West Wits mines this morning. These workers join their colleagues at the Vaal River operations who returned to work on Monday, 22 October and Tuesday, 23 October 2012.
Large numbers of employees at the Mponeng, TauTona and Savuka mines returned to work this morning and the focus now is on preparing these operations to ramp up production safely. The dismissal process announced on 26 October 2012 will continue for those who do not return to work.
The unprotected strike started at the Kopanang Mine in the Vaal River region on 20 September and at the remainder of AngloGold Ashantis South African mines on 25 September. About 32,000oz of gold production was lost each week the six mines were idle.
Further details on the impact of the unprotected strike, the settlement and the ramp-up process will be provided along with AngloGold Ashantis operating and financial results on 8 November 2012.
About AngloGold Ashantis South African Operations and the Current Strike
AngloGold Ashantis 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 Ashantis 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 Ashantis South African gold production and all of the groups uranium production. The West Wits accounts for the balance.
AngloGold Ashanti is a member of the gold industrys central collective bargaining process under the auspices of 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 Africas annual Consumer Price Inflation was 5% in August 2012. The aforementioned 2011 agreement also established an Entry Level Task Team to address entry-level wages and related issues. Additional improvements to the current pay structure were offered to workers on 18 October to address items contained in the terms of reference given to the Entry Level Task Team.
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, as it pertains to AngloGold Ashantis employees, includes the following:
- Category 3 employees will be rolled up to Category 4, the new entry level;
- Salaries of the Category 4 to 8 employees will be raised by 2%;
- A new level for Loader, Locomotive, Winch and Water Jet Operators will be created within Category 4 and their basic rates will be adjusted by R400 per month and;
- Rock Drill Operators will have their basic rate adjusted by R500
Statement issued by AngloGold Ashanti through the JSE SENS Service, October 26 2012
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