The mining industry in Ghana will not record massive layoffs this year as was the case last year, Business Finder can confirm.
In 2014, AngloGold Ashanti and Newmont together sacked almost 6,000 workers basically due to rising operational costs and reduction in gold prices. However, the most affected were employees of AngloGold.
“As regards layoff, I don’t think we are going to see much happenings”, General Secretary of the Ghana Mine Workers Union, Prince William Ankrah told Business Finder.
Continuing, he said: “If we are to do things better, layoffs might not be the case because the operational challenges have been contained to some extent,”
Mr William Ankrah added that though the year 2015 has been a tough one particularly the energy crisis it has not led to any drastic layoffs to a larger extent.
On human capital challenges, Mr William Ankrah said there were few disputes with Newmont and Gold Fields regarding payroll and job grading respectively.
He also emphasized the need for parity in terms of salaries between Ghanaians workers and expatriates.
“We need to re-think the whole reward landscape to make sure that Ghanaian nationals working in the mining sector are well taken care of so they can pay taxes to the government.”
Meanwhile, there appears to be some hope for the Ghanaian mining industry as AngloGold Ashanti plans to increase its workforce slightly.
This is because of the viability of the Obuasi mine which was partially shut down last year.
It is expected to resume full scale operations by 2017 or 2018.
“I hear is so exciting that joint venture is not an option for AngloGold. I hear the managers are so happy with Obuasi’s feasibility studies,” Mr William Ankrah stated gleefully.
He explained further that “Primarily from where I sit now or am hearing there is light at the end of the tunnel except that they are still putting the numbers together. I think in the next year or two we should see a clear signal.”
AngloGold, the world’s fourth-biggest gold producer, swung to a profit in the first quarter of 2015 as production beat the company’s guidance and costs fell.
Adjusted headline earnings were $35million, compared with a loss of $117 million in the previous quarter.
Production was 969, 000 ounces, beating the company’s estimate of between 900 000 ounces and 940 000 ounces.
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