AngloGold Ashanti Mali mine strike put on hold

AngloGold Ashanti mine workers (for the Sadiola and Yatela gold mines in Mali) held a five-day strike in February 2014 over demands concerning better layoff terms as AngloGold Ashanti plans on cutting costs because of the recent slump in gold prices, and they were also looking to hold another stoppage.

As of 09 March 2014, AngloGold Ashanti mine workers have postponed the strike as to allow negotiations over redundancy payouts. The miners are being represented by Mahamadou Konte, who is the president of the commission and he is facilitating the ongoing negotiations.

If the mine workers’ demands are not met, they plan to continue with the now postponed strike. The demand, as always, has been an increase in the mine workers salary but now they are also asking for additional medical care.

AngloGold Ashanti have sinced refused to budge on the offer put forward of paying the employee’s a weeks’ worth of wages for every year they worked for AngloGold Ashanti.

Gold accounts for estimate three-quarters of Mali’s exports and one a third of the state’s revenues.  AngloGold Ashanti shares ownership of the Sadiola and Yatela gold mine with Canada’s IamGold. Both AngloGold Ashanti and IamGold chose to, in 2013, to hold off on expansion of the Sadiola mine and they also chose to suspend excavation at Yatela, after citing higher operational costs and lower gold prices.

Gold prices have fallen to an estimated $1 337.30/oz, from a somewhat high in 2011 of $1 920.30/oz; this drop has caused many mining firms to consider suspending their mining projects.