Newmont Ghana said between 500 and 600 of its workers would lose their jobs in its on-going effort to improve costs and operational efficiency to ensure that the business remains sustainable.

In a statement, Newmont Ghana said the workforce reduction is 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.

It said the company had notified the Chief Labour Officer and the Ghana Mine Workers Union (GMWU), and would negotiate a memorandum of understanding with the GMWU over the pay-out package for the affected employees.

The statement said the reduction in workforce was expected to be completed by the end of June this year.

The statement quoted Mr Dave Schummer, Senior Vice President of Newmont Africa as saying, “continued operation 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.”

“We will treat affected employees with dignity and respect for their valued contributions to the company, and in accordance with our values” he added.