Unprotected Work Stoppage Impacts AngloGold Ashanti's South Africa Operations
JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 09/25/12 -- Workers at AngloGold Ashanti's (NYSE: AU) South African operations have embarked on an unprotected strike, preventing the commencement of the night shift on September 25. Workers at the West Wits and balance of the Vaal River Regions' operations joined those at Kopanang, who embarked on an unprotected work stoppage on September 20. This interruption to normal mining and processing operations comes amid unprocedural disruptions elsewhere in South Africa's gold and platinum mining sectors.
AngloGold Ashanti's priority is to maintain safety, peace and stability at each site and to continue a constructive dialogue with all employees, their representatives and other stakeholders. Discussions are being held with representative trade unions on an industry-wide basis through the Chamber of Mines. No formal demands have yet been presented to management by the striking workers. The company is following the necessary standard legal procedures in order to have the latest work stoppage formally declared as unprotected.
AngloGold Ashanti will provide updates as and when appropriate.
About AngloGold Ashanti's South African Operations
AngloGold Ashanti's South Africa operations accounted for approximately 32% of total group production during the first half of the year. Approximately 35,000 people are employed across AngloGold Ashanti's South African operations. This figure is inclusive of contractors and those working on two major capital projects under way at the Moab Khotsong and Mponeng mines.
AngloGold Ashanti is a member of the gold industry's collective wage bargaining unit at the Chamber of Mines and as such is committed to addressing demands regarding pay and other substantive issues through this framework. At present, the gold industry is in the second year of a two-year wage agreement with the latest increases, ranging from 8% to 10%, awarded to the workforce in July, under the agreement reached in 2011. A similar increase was awarded last year. South Africa's annual Consumer Price Inflation is currently 5% in August.
SPONSOR: UBS South Africa (Pty) Limited
Certain statements made in this communication, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti's operations, individually or in the aggregate, including the achievement of project milestones, the completion and commencement of commercial operations of certain of AngloGold Ashanti's exploration and production projects and the completion of acquisitions and dispositions, AngloGold Ashanti's liquidity and capital resources and capital expenditure and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental issues, are forward-looking statements regarding AngloGold Ashanti's operations, economic performance and financial condition. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti's actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions including environmental approvals and actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of certain of these and other factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2011, which was distributed to shareholders on 4 April 2012, the company's 2011 annual report on Form 20-F, which was filed with the Securities and Exchange Commission in the United States on 23 April 2012 and the prospectus supplement to the company's prospectus dated July 17, 2012 that was filed with the Securities and Exchange Commission on July 25, 2012. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti's actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, stakeholders are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.
AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the "Investors" tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti.
Contacts
Media
Alan Fine
+27 83 250 0757
Stewart Bailey
+1 646 338 4337 / +27 83 253 2021
General:
+27 11 637 6031
Investors
Email Contact
Stewart Bailey
(US & SA)
+1 646 338 4337 / +27 83 253 2021
Sabrina Brockman
(US & Canada)
+1 (212) 858 7702 / +1 646 379 2555
Mike Bedford
(UK & Europe)
+44 779 497 7881 / +44 1225 93 8483
