Anglogold Ashanti Doles out Financial Advice for Laid-off Workers
Financial advice has been handed out to more than 800 mine workers for Anglogold Ashanti from the Obuasi community in Ghana who attended a special investment fair.
They are among what is being estimated as an overall figure of 6,500 workers who are being retrenched as Anglogold Ashanti shuts down its old mine site to relocate to the Sanso site also in Obuasi.
The fair was endorsed by the Ghana Mine Workers Union (GMWU) which has started its own programme to help its members better manage their severance packages.
Following negotiations, union members will be paid 25 percent of their annual salary multiplied by the number of years they have worked at the mine.
Education and advice about handling personal finance form part of the GMWU’s sensitisation programme.
The investment fair included more than a dozen investment institutions and recruitment agencies who were able to recommend plans for more efficient management of the monetary packages.
Prince William Ankrah, General secretary of the GMWU, has been reported saying: “The campaign is working well and management is supportive.”
The retrenchment programme was announced earlier this year and Anglogold Ashanti is expected to spend $220 million in settlement packages.
However, it is expected within two years the company will re-hire some of the more highly skilled workers once the redesign of the mine has been completed.
The decision to close the old mine has been blamed on rising production costs, high under-performance of works and unstable world markets affecting prices.
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”