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AngloGold South Africa to cut 2,000 jobs

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South African gold miner AngloGold Ashanti plans to cut 2,000 jobs at its domestic operations, it said on Wednesday, as part of plans to cut costs.

AngloGold employs roughly 8,200 people in South Africa, where mining companies have had to deal with the risk of volatile labour relations, rising costs, regulatory disruptions and technical issues.

“The restructuring will affect employees across the different categories and levels, including the region’s executive committee and senior management” the company said in a statement.

AngloGold closed a mine in South Africa and sold two others in the country to local rival Harmony and China’s Heaven-Sent SA Sunshine last year. The company also has operations in other countries in Africa, including Tanzania and Ghana.

The company’s remaining South African assets are Mponeng mine, and a surface operation. The all-in costs of running the business in the first quarter of the year was $1,361 compared with the average gold price of $1,330 per ounce during the period, AngloGold said.

“This performance emphasises the need to address our cost base to ensure it is appropriate for our much-reduced production,” it said.

By: Reuters

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