About 1,600 workers of AngloGold Ashanti will be converted to contract staff in 2014.

The mining company has already laid off 430 workers comprising staff from managerial and administrative departments as well as underground workers. 

Joy Business has gathered that the action is premised on internal challenges with the company's operations, rather than the declining prices of Gold on the world market.

The challenges has forced the company to embark on a new approach to mining which is less cost intensive.

General Secretary of the Ghana Mine Workers Union, Prince William Ankrah, told Joy Business although the decision by the mining company is unfavourable, they accept it.

He said the key difference under the new system is that the 1,600 workers will be moving from a more regularised job environment to a contractual arrangement.

He indicated that the new arrangement will not rob the contract staff of their benefits.