Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

AngloGold Ashanti may axe up to 8,500 jobs at South African mines

AngloGold Ashanti may axe up to 8,500 jobs at South African mines
As part of the upcoming changes, Africa's biggest gold producer intends to place its Kopanang mine (pictured) in “care and maintenance.” (Image courtesy of AngloGold Ashanti.)

World number three gold miner AngloGold Ashanti (NYSE:AU) (JSE:ANG) may cut about 8,500 jobs, or 30% of its workforce, at its South African operations, adding it also plans to halt some unprofitable mines.

As part of the changes, it intends to place its Kopanang mine and the Savuka section of the TauTona mine on care-and-maintenance.

Talks with unions over the looming restructuring aimed at “protecting the viability” of the company’s South African business over the long-term have already begun, AngloGold said in a statement.

As part of the upcoming changes, the gold producer intends to place its Kopanang mine and the Savuka section of the TauTona mine on care-and-maintenance, both a clear example of the challenges AngloGold is facing in its home country —rising costs and depleted ore reserves.

The two operations had all-in sustaining costs in the first quarter of $1,737 and $2,399 an ounce respectively, following significant operating losses through 2016, the company noted.

To continue reading please click link http://www.mining.com/anglogold-ashanti-may-axe-8500-jobs-south-african-mines/