Mining firms, Gold Fields and AngloGold Ashanti have ruled out job cuts despite plans to embark on a joint venture on their Tarkwa and Iduapriem mines.

The two mining giants earlier this month announced that it is merging these two mines to create the largest gold mine in Africa, subject to regulatory approval.

Speaking to Joy Business, Managing Director of AngloGold Ashanti Ghana Limited, Eric Asubonteng said the joint venture will create longer-term value for combined stakeholders.

He stressed that the move is not meant to cut jobs of employees, but the company will redeploy some affected employees.

"This joint venture is not about job cuts. It will not have any major impact on some jobs. However, there could be some small impact with respect to some jobs and that could be a change of job, not necessarily losing the job”.

“We will ensure transparency in what we do. In certain cases, where some of the employees are affected, we will find a way to embark on redeployment. It’s only after that we can find a redeployed opportunity then we look at compensation", he said.

Mr. Asubonteng however indicated that both companies will be heavy on consolidating local content in their operations.

"Local content is one that we are all passionate about. Both companies have been doing this and it is not about we doing it now, but it has been in existence for years; hence we will continue to make it more effective", he stressed. 

The Executive Vice President and Head of Gold Fields West Africa region, Joshua Mortoti said the joint venture will aid in leveraging the operating efficiency advantage due to its scale to unlock higher gold grades at Iduapriem and maximize production across both processing plants.

"This proposed joint venture is subject to the conclusion of due diligence and definitive transactions agreements and the requisite regulatory approvals. We are expecting that within this year we will be engaging with government.”

“This is to harness the synergy we all know exists and it has been on the table for many years. Both companies know the fence should be removed for a long time”, he mentioned.

The proposed joint venture is expected to improve the life of the mine, ensure business efficiency and operational synergy by combining respective ore bodies and infrastructure for the benefit of shareholders and stakeholders.

It is proposed that once the requisite approvals are received, the government of Ghana will have a stake of about 10% in the Joint venture. Gold Fields will have 60% whilst AngloGold will have 30%.