The cuts will fall in its South African operations, while the increased production reported stems from the Minas-Rio mine in Brazil.
The market enthusiasm became tempered as trading continued but shares were still around 9% up heading towards the close on Thursday.
The beleaguered miner has endured a very difficult period as global demand for commodities has slumped, so the news was welcome relief for shareholders who have had to watch shares lose 75% of their value over the past year.
Another major market development on Thursday was the Chancellor George Osborne announcing the postponement of the £2bn sale of Lloyds Banking Group shares to the public, due to take place in March.
Osborne cited recent volatility in global markets and said the plan would be revisited when this had ‘calmed down’. The shares have lost 12.3% year-to-date however, which suggests Osborne’s hand has been forced.
Elsewhere in the FTSE 100 Royal Dutch Shell received the green light from BG Group shareholders to complete its takeover of the company. Some 83% approved the $49bn deal, well above the 75% needed. The scheme of arrangement is expected to become effective on 15 February 2016.
Shell has said the BG Group deal is a key part of its strategy at a time where it is struggling badly due to the dramatic slump in oil prices.
