AngloGold Ashanti Ultimatum to Workers on Unprotected Strike
JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 10/22/12 -- AngloGold Ashanti (NYSE: AU) has done its utmost over the past month to work towards a mutually agreeable solution to the unprotected strike at the company's Vaal River and West Wits operating units. The strike has cost approximately 32,000oz a week in lost production.The company has engaged with striking workers in a respectful and honest way throughout this period, despite the fact that the work stoppage is unprocedural and unprotected. AngloGold Ashanti has continued to seek dialogue and compromise, including the offer of a fair and reasonable salary package improvement through the established bargaining system agreed between elected representatives of organised labour and South Africa's major gold producers, and facilitated by the Chamber of Mines.
The action has been conducted largely in a peaceful manner on AngloGold Ashanti's mines, with minimal injury to people and damage to property. Nonetheless, AngloGold Ashanti's management remains concerned about the level of intimidation which appears to be prevalent during the recent illegal strike actions.
It is gratifying to note that initial indications are that employees have begun returning at the Kopanang and Great Noligwa operations and metallurgical plants in the Vaal River region.
However, employees at the balance of the operations appear to have rebuffed these efforts at resolution. Meanwhile, conditions of the ore bodies and underground infrastructure across these ultra-deep operations have continued to deteriorate, raising the risk that portions of these mines will be sterilised and jobs permanently lost. The point has now been reached where further steps must be taken to try break the deadlock and encourage a rapid return to normal operations.
As such, AngloGold Ashanti is today issuing a final call for all workers to return to work by 12h00 on Wednesday, 24 October 2012. Those who return to work by this time will receive the improved wage offer which has been communicated to all members of the workforce directly by AngloGold Ashanti and separately by elected union representatives.
Those who do not present themselves for work by 12h00 on Wednesday 24 October will be dismissed.
"Failure to return to work, in order that we resume normal operations,
will result in the issue of notices of dismissal to any and all employees
who have not complied with the ultimatum," Chief Executive Officer Mark
Cutifani said. "It is regretful that matters have reached this stage, with
job losses now being threatened and livelihoods for thousands of families
being placed at risk."
Conference Call
AngloGold Ashanti will host a conference call to provide an update on the
strike activity at 4pm today, Monday 22 October, at 4pm, Johannesburg time.
(10am EST, 3pm BST). Please see details below:
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South Africa (Toll-Free) 0 800 200 648
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South Africa - Johannesburg 011 535 3600
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South Africa - Johannesburg Alternate 010 201 6616
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UK (Toll-Free) 0808 162 4061
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UK Alternative (Toll-Free) 0 800 917 7042
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Canada (Toll-Free) 1 866 605 3852
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USA (Toll) 412 858 4600
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USA (Toll-Free) 1 800 860 2442
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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, any plan regarding the restructuring of
any of AngloGold Ashanti's operations, 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,
social, political 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.
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