Reuters reported that Newmont Mining Corp. (NYSE:NEM) intends to cut as many as 600 jobs at its Ghana-based gold mine by this June. Its reasons for doing so include an “ageing facility and slumping gold prices.”
As quoted in the market news:
U.S.-based Newmont operates two mines in the West African country. Ahafo produced its first gold in mid 2006, and Akyem commercial production began last year. Both projects constitute around 20 percent of the company’s core assets worldwide.
Adiki Ayitevie, Newmont’s external affairs director, said the planned job cuts, mostly at Ahafo, was part of measures to readjust expenditures to the ageing milling rate.
‘We are looking at 500-600 jobs. (Gold) prices are still volatile so the key objective is reducing labour force to align with reducing mining rate,’ She told Reuters.