Agreed Wage Settlement at the Obuasi Mines

02:15 p.m Jun 10, 1999 Eastern

--(BUSINESS WIRE)--June 10, 1999--Ashanti Goldfields Company Limited announces today that an agreed wage settlement has been reached between the management of the Obuasi mines in Ghana and the Obuasi mine workers. The terms of the settlement were agreed on June 2 with officials of the Ghana Mine Workers Union and were accepted by the Obuasi workers at a rally on June 4th.

The terms of the settlement are as follows: - The monthly wages of employees are to be increased by US$20 flat

with effect from Jan. 1, 1999. - The indexation of wages to the US dollar will be maintained to

take account of the devaluation of the local currency. - Ashanti will institute an insurance savings scheme funded by the

company for the benefit of its employees at Obuasi with effect

from June 1, 1999.

The material difference between this package and the original one which was rejected by the workers is the conversion of the previously proposed lump sum payment of EU317,000 (US$131 equivalent) into a salary increase of US$20 a month per worker.