Sylvania Platinum has announced senior executives will take pay-cuts to counter-act strike-related financial difficulties, as the company’s operations begin to pick up.
The South-Africa focused miner today disclosed that operations dented by the wide-spread mining strikes over recent months have begun to see improvements, but that in order to further offset the effects of the lost production, the chief executive officer (CEO) and deputy CEO of the company will be forfeiting one third of their wages over the first six months of 2013.
In addition to the top executives making pay sacrifices, bonus payments to corporate staff have been effectively removed for the first six months of 2012, with targets in place for both corporate staff and plant employees with respect to full year bonus opportunities.
“I am pleased that my fellow Sylvania employees are supporting the austerity initiatives as well as getting the production machine back up to speed,” commented Terry McConnachie CEO of Sylvania Platinum.
“This, in my view, sets Sylvania apart from most other companies in the sector and will ensure we remain strongly profitable in this depressed pricing environment and are well placed to benefit from a strengthening pricing environment,” McConnachie added.
Following significant disruption to its South African operations amidst the miners’ strikes in the second half of this year, Sylvania was forced at the end of October to revise its output forecast for the year, dropping its target to 50,000 ounces.
However, with production resuming and showing positive signs of recovery the company has decided to target 15,000 ounces per quarter going forward.
The platinum producer experienced difficulties in September and October in particular, as operations at its Western Limb, Mooinooi and Millsell were disrupted by both internal actions but also by more vehement actions in neighbouring operations in the Rustenburg areas.
Following protracted wage negotiations with its employees, Sylvania agreed to wage increases at a company-wide average of 11.4 percent.