Business News of 2014-02-25

Newmont adopts prudent cost reduction measures

Newmont Ghana’s ongoing effort to improve costs and operational efficiency to ensure the business remains sustainable will impact between 500 to 600 jobs.

The workforce reduction follows ongoing work to streamline the company’s cost structure, improve business efficiency and address the near-term production decline at its Ahafo Mine due to increased waste rock stripping and lower grades.

The company has notified the Chief Labour Officer and the Ghana Mine Workers Union (GMWU) and will be negotiating a Memorandum of Understanding with the GMWU over the pay-out package for the affected employees.

This reduction in workforce is expected to be completed by the end of the second quarter of this year.

“Continued operating cost pressures in the current low gold price environment require that we make very difficult but critical business decisions which enable us to continue creating value for our stakeholders and shareholders,” said Dave Schummer, senior vice president, Newmont Africa. “We will treat affected employees with dignity and respect for their valued contributions to the company and in accordance with our values.

About Newmont Ghana Newmont Ghana is one of five core operating districts of Newmont Mining Corporation), one of the largest gold companies in the world. Newmont Ghana operates the Ahafo Mine in the Brong-Ahafo Region and the Akyem mine in the Birim North District of the Eastern Region.

Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index and has been on the index ever since.

Newmont’s industry leading performance is reflected through Newmont Ghana’s high standards in environmental management, health and safety for its employees and creating value and opportunity for its host communities and Newmont’s shareholders.

More information can be found in Newmont's annual sustainability report.

The report is published as part of Newmont’s ongoing obligations as a founding member of the International Council on Mining and Metals and in accordance with its commitments under the United Nations' Global Compact and the Voluntary Principles on Security and Human Rights.

Signed:

Adiki O. Ayitevie,

Director, External Affairs and Communications