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AngloGold Ashanti Reaches Three-Year Deal on SA Wages, New Shift Arrangement
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
JSE Bond Company Code - BIANG
(“AngloGold Ashanti” or the “Company”)
17 September 2018
NEWS RELEASE
AngloGold Ashanti Reaches Three-Year Deal on SA Wages, New Shift Arrangement
(JOHANNESBURG -- PRESS RELEASE) -- AngloGold Ashanti is pleased to have reached
agreement on wage increases for the next three years, as well as a new shift arrangement
with trade unions representing the majority of its employees in South Africa. The deal,
signed on Monday, 17 September 2018, is another step in an important process to improve
pay for its employees – particularly those at the entry level - while providing certainty as it
works to return its business in the country to profitability.
“We are pleased to have reached this agreement after robust but constructive talks with the
unions who represent most of our employees in South Africa,” Chris Sheppard, AngloGold
Ashanti’s Chief Operating Officer: South Africa, said. “The new shift arrangement is an
important factor, as it provides an opportunity for us to realise improvements in productivity
and Safe Production, which are essential to the long-term sustainability of the business.”
The agreements were signed by the Association of Mining and Construction Union (AMCU),
which represents 48.9% of AngloGold Ashanti’s workforce in South Africa, as well as
Solidarity, which represents 3.7% and the UASA the Union, which represents 9.4%. Talks
are ongoing with the National Union of Mineworkers, which represents 32.8% of AngloGold
Ashanti’s employees in South Africa. Non-union members account for 5.1% of the
Company’s South Africa staff complement.
The agreements on pay and shift arrangements are key pillars in the strategy to complete
the turnaround of the business, which represents around 13% of the Company’s total
production.
The AngloGold Ashanti final agreement with Unions entails the following:
In respect of category 4 – 8 employees:
o 1st year: R700 increase per month on standard rate plus an additional R300 per month
in consideration for agreeing to and working the new shift arrangements as envisaged
in the New Shift Arrangements Agreement. In total, this will result in an increase of the
standard rate of pay of R1000.
o 2nd year: R800 increase per month on standard rate plus an additional R200 per month
in consideration for agreeing to and working the new shift arrangements as envisaged
in the New Shift Arrangements Agreement. In total, this will result in an increase of the
standard rate of pay of R1000.
o 3rd year: R900 per month on standard rate plus an additional R100 per month in
consideration for agreeing to and working the new shift arrangements as envisaged in
the New Shift Arrangements Agreement. Altogether, this will result in an increase of
the standard rate of pay of R1000.
The wage agreement for the Miners & Artisans and Officials comprises 5.5% on the standard
rate with an additional 1% in consideration for agreeing to and working the new shift
arrangements as envisaged in the New Shift Arrangements Agreement. This final offer, which
will result in an increase on the standard monthly rate of 6.5% for the first year, will be carried
through to the second and third years as 6.5% or CPI, whichever is the greater for the balance
of the agreement.
About AngloGold Ashanti South Africa:
AngloGold Ashanti’s mining operations in South Africa include the long-life Mponeng mine in
the West Wits region and long-life Mine Waste Solutions tailings retreatment operation, as
well as the surface rock-dump reclamation operations in the Vaal River region. These assets
constitute roughly 13% of AngloGold Ashanti’s annual production.
Ends
Johannesburg
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
CONTACTS
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Sabrina Brockman +1 646 880 4526/ +1 646 379 2555 sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763 / +27 82 821 5322 fmgidi@anglogoldashanti.com
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining
industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity improvements,
growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion
of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions,
AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or
environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. These forward-
looking statements or forecasts 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 and forecasts 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 and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including
environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management.
For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2017, which was filed with the United States
Securities and Exchange Commission (“SEC”). 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, readers 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 the date hereof 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.
The financial information contained in this news release has not been reviewed or reported on by the Company’s external auditors.
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.
Website: www.anglogoldashanti.com
ENDS
Date: 17/09/2018 01:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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