Obuasi strike could dent Ashanti

With annual production capacity of 850,000 oz., Obuasi is Ashanti Goldfields‘ (AHD-T) largest gold mine, yet an extended strike at the Ghanaian operation could squeeze second-quarter earnings.

“Obuasi is already having a particularly tight quarter due to the lack of flexibility in the surface mining operations,” says Trevor Schultz, Ashanti’s chief operating officer. “We do not have the flexibility to make up for unexpected interuptions to production, especially one as serious as this stoppage.”

Unhappy with a deal their union reached with the company, workers at the mine walked off the job in mid-May. They are demanding increased wages and benefits.

Both the union and company have called for an end to the strike, which has been declared illegal under Ghanaian labour law.

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