AngloGold may axe third of workforce
Mining union ‘angry and shocked’ at decision, but costs at Kopanang and Savuka are unsustainable
AngloGold Ashanti, the world’s third-largest gold miner, could cut up to 8,500 jobs, or a third of its South African workforce, as two unprofitable mines reach the end of their lives. In SA, the mining industry has shed 70,000 jobs over the past five years because of high costs, volatile commodity prices and — in the case of platinum, stagnant, weak prices — as well as declining productivity. “This is a difficult decision, which follows a period of significant and, ultimately, unsustainable losses and also the evaluation of the options available to return our South African business to profitability,” said Srinivasan Venkatakrishnan, the CEO of AngloGold. “It is critical that we act to protect the long-term sustainability of this business and the majority of our workforce.” Citigroup pointed out that the two mines due for closure operated at about double the AngloGold cost average of $744/oz in 2016 and that stopping the mines would enhance the company’s headline earnings a share abo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.