PanAust business efficiency review
PanAust business efficiency review
As a result of a recently implemented business efficiency review, PanAust yesterday committed to organisational changes that have resulted in a near 5 percent (182 people) reduction in the work force across the whole business.
The changes are expected to result in an annual operating cost reduction of about US$15.5 million.
Further reductions in employee numbers are expected to occur during the course of the year through natural attrition and as a number of employment contracts expir e.
The aim of the review, which remains on going, is to streamline the business process and systems, and ensure the Company is appropriately resourced for sustainable operations over the envisaged mine lives.
The Lao business has now entered its tenth year of operation and the success of the Company's various personnel training programmes over this period has afforded the opportunity to replace a number of expatriate positions with Lao nationals.
PanAust Managing Director, Dr Fred Hess, said “PanAust's operations are well established and globally competitive.”
“The Company is now in an even stronger position to meet the challenges associated with a weaker commodity price environment with all in sustaining costs at our operations allowing for healthy margins at prevailing prices. It is always a difficult decision to reduce staff numbers.”
These organisational changes are necessary to ensure that operations continue to remain competitive, and reflect the Company's priorities in 2015 of efficiency optimisation at existing operations and advancing the Frieda River Project towards a development decision.
“By focusing on improving efficiencies we will maximise the value of our existing operations through enhanced margins and cash flow generation,” Dr Hess said.
Annual copper in concentrate production at Phu Kham is scheduled to increase by about 30 percent over the next several years with no further project capital required, while the Frieda River Project is expected to sustain PanAust's copper business well beyond the next decade.
Business improvement initiatives continue and further details will be provided on these in the Company's December quarter 2014 report which is scheduled for release to the market on January 29, 2015.
