AngloGold Ashanti Ltd. said May 23 that it will lay off up to 2,000 workers across its South African operations as part of a restructuring aimed at paring losses.
The miner cited several operational challenges, including falling production and rising costs, as the reason for the retrenchments. Its South African business booked all-in costs of US$1,361 per ounce against a gold price of US$1,330 per ounce in the first quarter.
AngloGold Ashanti, whose remaining assets in South Africa include the Mponeng gold mine and a tailings treatment operation, employs about 8,200 people in the country.
A consultation with organized labor groups, to be facilitated by the Council for Conciliation, Mediation and Arbitration, will be conducted to ensure the viability of the miner's South African operations, while greatly minimizing job losses.
In response, the Association of Mineworkers and Construction Union said it won't allow its members to be "robbed of their livelihoods by the sheer pursuit of profit over people," while the National Union of Mineworkers urged all trade unions to create a united front to save jobs in the sector, Mining.com reported.
Previously, the National Union of Mineworkers in South Africa is seeking an up to 37% increase in wages for the gold sector in the country over the next two years.
