Newmont Ghana Adopts Prudent Cost Reduction Measures

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Accra, 25th February 2014 – Newmont Ghana’s ongoing effort to improve costs and operational efficiency to ensure the business remains sustainable will impact between 500 to 600 jobs.

The workforce reduction follows ongoing work to streamline the company’s cost structure, improve business efficiency and address the near-term production decline at its Ahafo Mine due to increased waste rock stripping and lower grades.

The company has notified the Chief Labour Officer and the Ghana Mine Workers Union (GMWU) and will be negotiating a Memorandum of Understanding with the GMWU over the pay-out package for the affected employees. This reduction in workforce is expected to be completed by the end of the second quarter of this year.

“Continued operating cost pressures in the current low gold price environment require that we make very difficult but critical business decisions which enable us to continue creating value for our stakeholders and shareholders,” said Dave Schummer, senior vice president, Newmont Africa. “We will treat affected employees with dignity and respect for their valued contributions to the company and in accordance with our values.“