news release
AngloGold Ashanti Limited \ (Incorporated in the Republic of South Africa)
(Reg. No.1944/017354/06) \ ISIN Number: ZAE000043485
Corporate Affairs Department: \ 16th Floor \ 11 Diagonal Street \ Johannesburg \ 2001 \ South Africa
Tel +27 (0)11 637 6261 \ Fax +27 (0)11 637 6399/6400 \ www.AngloGoldAshanti.com
AGA55.05
11 August 2005
ANGLOGOLD ASHANTI WELCOMES END OF STRIKE
AngloGold Ashanti welcomes the end of the gold mining industry’s wage dispute and strike, achieved
late today through agreement between the Chamber of Mines and the National Union of Mineworkers
and Solidarity.
Says CEO Bobby Godsell: “Strikes are by their nature unpleasant and costly. However it is pleasing
that the strike was resolved reasonably quickly and was conducted in an orderly manner. It is an
indication of how far we have come since the last wage strike in 1987, which lasted for three weeks and
involved significant violence.
“The settlement, involving the lowest percentage increases ever, was also an important step in
establishing a norm of lower single digit increases in an environment of low inflation,” he added.
Says AngloGold Ashanti South Africa region head Robbie Lazare: “With the three lost production shifts
and the start up to normalised production, we have effectively lost just over a tonne of gold. Our focus
now will be on improving productivity initiatives so as to offset increased costs, and working with the
unions to recover some of the lost shifts.”
The two-year agreement, effective 1 July 2005, can be summarised as follows:
- Wage increases of between 6% and 7%, with the highest increase for the lowest job category;
- A wage increase in the second year of CPIX plus 1%, subject to a guaranteed increase of between
5,5% and 6%, again depending on the job category;
- Increased employer contributions to the risk benefit within the retirement fund; and
- Improvements in accommodation subsidies.
ends
Queries
South
Africa
Tel:
Mobile:
E-mail:
Steve Lenahan
+27 (0) 11 637 6284
+27 (0) 83 308 2200
slenahan@AngloGoldAshanti.com
Alan Fine
+27 (0) 11 637 6383
+27 (0) 83 250 0757
afine@AngloGoldAshanti.com
Shelagh Blackman
+27 (0) 11 637 6379
+27 (0) 83 308 2471
skblackman@AngloGoldAshanti.com
Disclaimer
Except for historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such
statements are only predictions and actual events or results may differ materially. For discussion of important factors including, but not limited to
development of the Company’s business the economic outlook in the gold mining industry, expectations regarding gold prices and production,
and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company’s annual
report on the Form 20-F for the year ended 31 December 2004 which is filed with the Securities and Exchange Commission on 14 July 2005.