AngloGold Ashanti in financial crisis, can’t pay Ghanaian workers

AngloGold Ashanti, the world’s third-largest gold producer is in financial crisis. The miner as a result has been forced to put on hold staff layoff in Ghana.

“We are done with the review of our headcounts and costs, but the problem we are facing is funds to pay affected workers. Those affected are still at post because we lack the funds,” a top official of the company in Ghana told ghanabusinessnews.com, but pleaded not to be named.

In recent times, the Obuasi mine has been supported financially by its parent company, the source said, adding that the intended layoff by the company is part of efforts to reduce cost in a challenging business environment and to be able to run operations as safely and efficiently as possible to ensure success.

Currently, AngloGold Ashanti employs over 4,000 workers in Ghana but it is expected that over 400 workers will lose their jobs in the coming months, as Obuasi, its largest mine in the West African nation continues to underperform amid weak gold prices and high costs. The Obuasi mine has not produced above 400,000 ounces since 2004

“We are talking to major stakeholders in the industry to solve the funds issue, and making sure we have got long-term prospects. Hopefully in the next month or so we will be in a position to announce something,” the source said, without giving more details.

By Ray Pollera