Business News of 2014-01-17

Over 1,000 Anglogold Workers to go

More than 1,000 workers of Anglogold Ashanti’s Obuasi Mine are likely to lose their jobs soon if management endorses plans to shut down the Mine.

Currently, management of Anglogold is in talks with Government over the issue and the Mine could be shut down over an 18-24 month period, Lands & Natural Resources Minister, Inusah Fuseini has stated.

The workers, who have agreed to the move, might be going home with mouth-watering severance packages.

The Minister therefore urged management of Anglogold Ashanti Obuasi Mine to evolve a comprehensive plan for the future of the Mine in the next few days.

Once the biggest gold mine in the country and the leading employer in the industry with about 8,500 workers, the Obuasi Mine has in recent years become a high-cost producer, and not produced above 400,000 ounces since 2004.

The Mine has been struggling with overage equipment, poor security, inadequate power supply, and the activities of illegal miners.

Close to 430 miners at the Mine were sent home between July and September last year as part of the Mine’s broader revival strategy, but in spite of those, the Mine has not responded well as expected.

In the midst of its predicament, a lot of illegal mining activities are said to be taking place around its posing problems to the environment.

Mark Macomb, Senior Vice President of Anglogold Ashanti, admitted that the Mine was facing challenges including a decline in production.

Source: Daily Guide
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