Mining giant AngloGold Ashanti Limited (AGA) says it is continuing with its phased programme of a retrenchment exercise at the Obuasi mine, as it has �systematically become unproductive,� due to numerous challenges.
AGA, with the cooperation of the Ghana Mine Workers Union (GMWU), and in compliance with the relevant laws and regulations, has embarked on a phased programme of retrenchment at the Obuasi mine, as part of its efforts at rejuvenating and upgrading the mine�s activities.
About 3,100 employees were affected, according to the AGA�s Senior Vice President, Steve Rickman, and had been paid their severance packages, in line with the agreement reached with the GMWU.
The AGA currently has a total of 1,300 full time employees, and 1,100 third-party contractors at the Obuasi mine. But the exercise continues, Mr. Rickman said.
He said this at the AGA�s stakeholders� meeting held in Accra on Tuesday to discuss issues bordering on the daily running of the company, particularly, the situation of the Obuasi mine.
The Executive Vice President in charge of Sustainability, David Noko, addressing the meeting, said that the 117 year old mine had, over the years, become systematically unproductive.
The AGA had previously announced its intention to place the mine on limited operations, while a comprehensive feasibility study was pursued. The study, the company said, would be completed by the first quarter of 2015.
Mr. Noko explained that AGA Ghana had, over the past decade, contributed over $577 million in corporate taxes, royalties, dividend, customs duties and employee taxes to the economy. Out of the amount $324 million came from the Obuasi mine.
�The sharply lower gold price and worsening operational challenges required the current holistic intervention to improve the prospects of the Obuasi mine�s long-term sustainability,� he noted.
For decades, he added, �this national treasure and world-class ore body has delivered well below its potential, making it imperative to undergo a systematic change to allow it deliver significant and sustainable contribution to all stakeholders.�
He further stated that AGA would continue to work closely with the Obuasi Municipality in fashioning out sustainable alternative economic activities in the town, as he commends the government, GMWU and other key stakeholders for the support they had given the company as it was gripped by litany of challenges.
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