Mwana Africa executives take 50% pay cut

Published: 30 August 2013

MWANA Africa Plc executives have agreed to a 50 percent pay cut as the pan-African multi-commodity mining company bids for $5 million in annual savings.

The Alternative Investment Market listed mining and development company announced in June its plans to save $5 million from budgeted corporate costs.

Mwana has suffered from lower commodity prices in 2013 and said in June it was hoping to save $5 million a year and considering its options in relation to its assets and projects including Bindura Nickel Corporation and Zani Kodo.

To that end, Mwana Africa said on Friday that the firm's non-executive directors had all agreed to the 50 percent reduction in their fees with immediate effect. Mwana chief executive Mr Kalaa Mpinga has since agreed to reduce his salary by 25 percent and waived his $510 000 bonus awarded to him in March.

"Senior management have agreed to salary cuts ranging from 15 percent to 20 percent, effective from 1 September 2013. The company has also decided to significantly scale down its London presence," Mwana said in a statement. The expected annualised savings from these cost cutting measures is $2,6 million.

Mwana said the remainder of the cost savings will primarily be achieved through a review of suppliers" contracts, reducing advisory costs and benefiting from ancillary savings associated with the scaling down of the London office.

The multi-commodity mining giant has been facing challenges raising funding to support operations.

Mwana needed US$15 million for its subsidiary Bindura Nickel Corporation to restart phase 2 of the Trojan mine.
- herald

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