JOHANNESBURG, SOUTH AFRICA--(Marketwire - Oct 1, 2012) - AngloGold Ashanti (
"Clearly for South Africa's gold sector, as for many others, there is avery clear trade-off between investing in the sustainability of ourbusiness and not putting employment at risk," Chief Executive Officer MarkCutifani said. "If the current unprotected strike continues, it compoundsthe potential likelihood of a premature downsizing of AngloGold Ashanti'sSouth African operations."
Our stance on the strike remains clear:
- We are deeply disappointed that our employees have chosen to breaktheir commitment to the current wage agreement and collective bargainingstructures
- We do not intend to reward broken commitments, violence and threats ofintimidation
- We remain committed to our employees and the collective bargainingprocesses as a way to resolve our differences with recognized unions andassociations
- We are open to consider ideas to bring forward negotiations and worktogether with our social partners to renew our commitment to, and deliveryon, our social compact for the mining industry, as agreed in the MiningCharter
- If striking employees return to work and engage in constructivediscussion we will find a pathway to a sustainable and shared future
- If the current unprotected strike continues, it compounds risks of apremature downsizing of AngloGold Ashanti's South African operations
- In a country where roughly one in four people do not have work, it isincomprehensible that strikers are engaged in activities that threaten jobsin a cornerstone industry that is central to South Africa's growthaspirations, and where wage rates are highly competitive as compared toother 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. Approximately35,000 people are employed across AngloGold Ashanti's South Africanoperations. This figure is inclusive of contractors and those working ontwo major capital projects under way at the Moab Khotsong and Mponengmines.
AngloGold Ashanti is a member of the gold industry's collective wagebargaining unit at the Chamber of Mines and as such is committed toaddressing demands regarding pay and other substantive issues through thisframework. At present, the gold industry is in the second year of atwo-year wage agreement with the latest increases, ranging from 8% to 10%,awarded to the workforce in July, under the agreement reached in 2011. Asimilar increase was awarded last year. South Africa's annual ConsumerPrice Inflation is currently 5% in August.
SPONSOR: UBS South Africa (Pty) Limited
Certain statements made in this communication, other than statements ofhistorical fact, including, without limitation, those concerning theeconomic outlook for the gold mining industry, expectations regarding goldprices, production, cash costs and other operating results, growthprospects and outlook of AngloGold Ashanti's operations, individually or inthe aggregate, including the achievement of project milestones, thecompletion and commencement of commercial operations of certain ofAngloGold Ashanti's exploration and production projects and the completionof acquisitions and dispositions, AngloGold Ashanti's liquidity and capitalresources and capital expenditure and the outcome and consequence of anypotential or pending litigation or regulatory proceedings or environmentalissues, areforward-looking statements regarding AngloGold Ashanti's operations,economic performance and financial condition. Theseforward-looking statements involve known and unknown risks, uncertaintiesand other factors that may cause AngloGold Ashanti's actual results,performance or achievements to differ materially from the anticipatedresults, performance or achievements expressed or implied in theseforward-looking statements. Although AngloGold Ashanti believes that theexpectations reflected in suchforward-looking statements are reasonable, no assurance can be given thatsuch expectations will prove to have been correct. Accordingly, resultscould differ materially from those set out in theforward-looking statements as a result of, among other factors, changes ineconomic and market conditions, success of business and operatinginitiatives, changes in the regulatory environment and other governmentactions including environmental approvals and actions, fluctuations in goldprices and exchange rates, and business and operational risk management.For a discussion of certain of these and other factors, refer to AngloGoldAshanti's annual report for the year ended 31 December 2011, which wasdistributed to shareholders on 4 April 2012, the company's 2011 annualreport on Form 20-F, which was filed with the Securities and ExchangeCommission in the United States on 23 April 2012 and the prospectussupplement to the company's prospectus dated July 17, 2012 that was filedwith the Securities and Exchange Commission on July 25, 2012. These factorsare not necessarily all of the important factors that could cause AngloGoldAshanti's actual results to differ materially from those expressed in anyforward-looking statements. Other unknown or unpredictable factors couldalso have material adverse effects on future results. Consequently,stakeholders are cautioned not to place undue reliance onforward-looking statements. AngloGold Ashanti undertakes no obligation toupdate publicly or release any revisions to theseforward-looking statements to reflect events or circumstances after today'sdate or to reflect the occurrence of unanticipated events, except to theextent required by applicable law. All subsequent written or oralforward-looking statements attributable to AngloGold Ashanti or any personacting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures.AngloGold Ashanti utilises certain Non-GAAP performance measures and ratiosin managing its business. Non-GAAP financial measures should be viewed inaddition to, and not as an alternative for, the reported operating resultsor cash flow from operations or any other measures of performance preparedin accordance with IFRS. In addition, the presentation of these measuresmay not be comparable to similarly titled measures other companies may use.
AngloGold Ashanti posts information that is important to investors on themain 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 aboutAngloGold Ashanti.
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