Hochschild Mining PLC said it is optimistic it can reach a settlement with workers at its four Peruvian operations who are on strike claiming greater profit sharing. This stoppage is not currently impacting its full year production target of 28 million silver equivalent ounces in 2009.
Under Peruvian law, employees are entitled to a profit sharing of 8 percent of taxable profits. Mining industry workers are expecting profit sharing to remain at levels similar to previous years despite the dramatic downturn in the global economy, particularly during the second half of 2008, the group said in a statement.
Negotiations continue with the representatives of the workers and the Labour Authorities, who serve as mediators. Management is optimistic that a negotiated solution can be reached and the company will keep the market informed of developments as they occur.