NEWS RELEASE: AngloGold Ashanti Update on Unprotected Strike at South Africa mines

NEWS RELEASE: (Johannesburg)  –  AngloGold  Ashanti (AGA)  confirms that  its  mines  in  South  Africa remain  at  a standstill  amid the unprotected  strike  which  began  on 20 September  2012 at the Kopanang operation  and spread to the  remaining  five  operations  on  25  September  2012. Our priority remains to protect the safety of our employees and the communities in which we operate and we continue to work with the authorities to that end. AngloGold Ashanti has
safeguarded its own rights in relation to the strike by obtaining a court interdict to formally declare the work stoppage unprotected.
 “Clearly for South Africa’s gold sector, as for many others, there is a very clear trade-off between  investing  in the sustainability  of our business  and not putting  employment  at risk,” Chief  Executive  Officer Mark  Cutifani  said.  “If  the  current  unprotected  strike continues,  it compounds  the potential  likelihood  of a premature  downsizing  of AngloGold  Ashanti’s  South African operations.”
Our stance on the strike remains clear:
•  We are deeply disappointed that our employees have chosen to break their commitment to the current wage agreement and collective bargaining structures
•    We do not intend to reward broken commitments, violence and threats of intimidation
•  We remain  committed  to our employees  and the collective  bargaining  processes  as a way to resolve our differences with recognized unions and associations
•  We are open to consider ideas to bring forward negotiations and work together with our social partners to renew our commitment to, and delivery on, our social compact for the mining industry, as agreed in the Mining Charter
•  If striking employees return to work and engage in constructive discussion we will find a pathway to a sustainable and shared future
•  If the current unprotected strike continues, it compounds risks of a premature downsizing of AngloGold Ashanti’s South African operations
•  In a country where roughly one in four people do not have work, it is incomprehensible that strikers are engaged in activities that threaten jobs in a cornerstone industry that is central to South Africa’s growth aspirations, and where wage rates are highly competitive as compared to other labour intensive sectors in the country.

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
Released on 1st Oct. 2012

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