23rd Mar 2009 07:00
Industrial action at Hochschild's operations in Peru
No current impact on 2009 production target
Hochschild Mining plc ("Hochschild") reports that there has been industrial action at its four operations in Peru and that it is in discussions with local workers to reach a resolution regarding worker's claims for greater profit sharing. Under Peruvian law, employees are entitled to a profit sharing of 8% 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.
Despite the stoppage of operations, 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.
This stoppage is not currently impacting Hochschild's ability to achieve its full year target of 28 million silver equivalent ounces in 2009
Enquiries:
Hochschild Mining plc
Isabel Lütgendorf +44 (0)20 7907 2934
Head of Investor Relations
Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L for Reuters / HOC LN for Bloomberg) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits and currently operates five underground epithermal vein mines, four located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has over sixteen long-term prospects throughout the Americas.
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