Ashanti lays off at Obuasi

Falling gold prices have forced Ashanti Goldfields (ASL-N) to lay off more than 2,000 workers at the Obuasi mine in southwestern Ghana.

The move is designed to save the company US$7 million annually, lowering cash operating costs by US$9 per oz.

In the first quarter, cash operating costs at Obuasi were US$211 per oz. Including royalties and depreciation, total costs amounted to US$283 per oz.

The layoffs, which represent more than a fifth of the mine’s total workforce of more than 9,100, are not expected to hamper production. However, output will likely be 70,000 oz. lower as a result of a 13-day strike in June. The company ended the strike by signing a new wage agreement with the union.

The company also issued pink slips to 215 workers at the Iduapriem mine, southwest of Obuasi. Plans call for that open-pit operation to close by year-end.