The world's third largest gold miner, AngloGold Ashanti, has reached a two-year wage settlement with its unionised employees in South Africa that will bring an end to strikes at its Vaal River Operations.
In a statement, the company said it "can confirm that it has made an offer to its unionised employees in South Africa, under the auspices of the gold industry's collective bargaining framework, with the aim of reaching a two-year wage settlement" adding that "The National Union of Mineworkers (NUM), Solidarity and UASA (United Association of South Africa) have indicated their members will accept the improved offer and employees...have reported for work. The focus will be on a safe resumption of mining and ramp-up of production."
The NUM called a strike on 3 September after employers failed to meet pay demands for as much as 60 percent more than the current R5,000 a month of entry-level pay.
Under AngloGold's offer, pay levels will rise by between 7.5 percent and eight percent in the first year effective as at 1 July 2013 and employees will receive Consumer Price Index-linked increases in the second year, effective 1 July 2014.
The company is "awaiting receipt of a formal acceptance of the offer by the unions".
AngloGold Ashanti's Vaal River Operations accounted for about 16 percent of AngloGold Ashanti's production in 2012.
Image: © AngloGold Ashanti
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