UPDATE 1-AngloGold says S.Africa to reject Eskom hike plan

(adds detail on Ghana, Tanzania operations)

LONDON, Nov 11 (Reuters) - The South African government is expected to reject a proposal by utility Eskom to triple tariffs partly because of the impact they would have on the gold sector, the chief of AngloGold Ashanti (ANGJ.J) said on Wednesday.

Chief Executive Mark Cutifani also told the RBC gold conference in London that an efficiency and restructuring drive was due to cut the AngloGold workforce in South Africa by 5,000 to 10,000 people over the next five years from 30,000, but forced layoffs would be avoided.

Up to 1 million people, including workers in the sector and dependents, would likely suffer if if a proposal was implemented by Eskom to hike tariffs by 45 percent a year over the next three years, he said.

"As a consequence I do not believe the Eskom 45-45-45 proposal will fly," Cutifani said.

"Certainly the indications we've had from within government is that they understand the problem."

Power rates would likely double over three years instead of triple as under the Eskom proposals, he added, and the rand was strengthening, meaning it was all the more important to boost efficiency in South Africa by about 30 percent over three years.

He said a doubling of rates would lead to a 10 percent hike in cash costs for AngloGold (AU.N) -- the world's third biggest gold producer and Africa's largest.

Cutifani also said a drive to cut costs and boost output in Ghana and Tanzania was bearing fruit.