AngloGold, South Africa's biggest gold producer, has agreed a two-year wage deal for 4,500 of its workers.

The agreement covers junior management, technical and administrative staff.

The workers will receive a 9% across-the-board salary increase from this month, with a further 0.5-2% to be awarded on merit.

In January 2004, there will be a further across-the-board increase, of 8%, with negotiations on merit pay to begin by October 2003.

"Those negotiations will take into account the cost of living in relation to both the actual basic salary increase and the merit component," AngloGold said.

First union deal

The deal was signed with the National Union of Mineworkers and the United Association of South Africa on Wednesday.

"This is the first time that the NUM has participated in pay negotiations on behalf of officials at AngloGold following an agreement on their representivity in 2001," the company said.

AngloGold shares rose 1.6% to 320 rand, as investors reacted to news of the wage deal and a modest rise in gold prices to a fresh six-year high.

Last year, AngloGold became one of the first businesses in South Africa to provide anti-retroviral drugs to HIV-positive employees.

AngloGold estimates that up to 30% of its 40,000 workforce is infected with the virus.