(Ecofin Agency) - South African company AngloGold Ashanti plans to cut 2,000 jobs at local mining operations as part of its restructuring plan to reduce costs. The restructuring will affect employees across the different categories and levels, including the region’s executive committee and senior management.

In a statement published yesterday May 23, the company which employs about 8,200 people in South Africa indicated that it has disbursed at least $1,361 for operations in the first quarter of the year, compared with the average gold price of $1,330 per ounce during the period.

“This performance emphasizes the need to address our cost base to ensure it is appropriate for our much-reduced production,” the statement indicated.

For the record, 1700 jobs have already been cut after Pan African Resources closed its Evander 8 mine. Moreover, gold producers have to deal with low gold prices on local market, but also other regulatory and technical problems, including unstable labor relations.

Let’s note that AngloGold halved its local production by selling its Kopanang and Moab Khotsong mines and closing its TauTona mine. Its remaining assets in the country include Mponeng mine and a surface operation. The company also operates in other African countries such as Ghana and Tanzania.

Louis-Nino Kansoun