AngloGold Ashanti Ultimatum to Workers on Unprotected Strike

(Johannesburg - Press Release) -AngloGold Ashanti has done its utmost over the past month to work towards a mutually agreeable solution to the unprotected strike at the company's Vaal River and West Wits operating units. The strike has cost approximately 32,000oz a week in lost production.

The company has engaged with striking workers in a respectful and honest way throughout this period, despite the fact that the work stoppage is unprocedural and unprotected. AngloGold Ashanti has continued to seek dialogue and compromise, including the offer of a fair and reasonable salary package improvement through the established bargaining system agreed between elected representatives of organised labour and South Africa's major gold producers, and facilitated by the Chamber of Mines.

The action has been conducted largely in a peaceful manner on AngloGold Ashanti's mines, with minimal injury to people and damage to property. Nonetheless, AngloGold Ashanti's management remains concerned about the level of intimidation which appears to be prevalent during the recent illegal strike actions.

It is gratifying to note that initial indications are that employees have begun returning at the Kopanang and Great Noligwa operations and metallurgical plants in the Vaal River region.

However, employees at the balance of the operations appear to have rebuffed these efforts at resolution. Meanwhile, conditions of the ore bodies and underground infrastructure across these ultra-deep operations have continued to deteriorate, raising the risk that portions of these mines will be sterilised and jobs permanently lost. The point has now been reached where further steps must be taken to try break the deadlock and encourage a rapid return to normal operations. 

As such, AngloGold Ashanti is today issuing a final call for all workers to return to work by 12h00 on Wednesday, 24 October 2012. Those who return to work by this time will receive the improved wage offer which has been communicated to all members of the workforce directly by AngloGold Ashanti and separately by elected union representatives.

Those who do not present themselves for work by 12h00 on Wednesday 24 October will be dismissed.

"Failure to return to work, in order that we resume normal operations, will result in the issue of notices of dismissal to any and all employees who have not complied with the ultimatum," Chief Executive Officer Mark Cutifani said. "It is regretful that matters have reached this stage, with job losses now being threatened and livelihoods for thousands of families being placed at risk."

About AngloGold Ashanti's South African Operations

AngloGold Ashanti's South Africa 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, under the agreement reached in 2011. A similar increase was awarded last year. South Africa's annual Consumer Price Inflation is currently 5% in August.

Statement issued by Anglo Gold Ashanti, October 22 2012

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