Anvil Mining staff take 20% pay cut

Anvil Mining has revealed that its remaining employees and board members have taken a 20 per cent pay cut as the company books a full-year net loss of $US138.5 million ($A209 million).

The net loss for the 2008 calendar year compares with the previous year's net profit of $US117.2 million.

Throughout the year the company endured a number of challenges including a review of its mining licences by the Democratic Republic of Congo government and sharply lower copper prices which forced the closure of its Dikulushi mine in December.

In its full-year report, Anvil said the 2008 net loss was on the back of higher operating costs mainly at Dikulushi and Mutoshi, lower production and copper prices, and a $US151 million one-off charge.

Net sales for the year declined 27 per cent to $US191.2 million while its operating profit before severance and demobilisation costs slumped 96 per cent to $US5.8 million.

The company still operates the Kinsevere copper mine in the DRC.

During the reporting period, Anvil put on hold expansion work at Kinsevere due to a lack of funds. The company said its needs an additional $US200 million to complete the work.

Anvil said it is continuing to make progress in obtaining the required funding however stated that if it could get the required financing, it may need to raise additional equity or sell some assets.

Additionally, the company also cut operating and administrative costs to the minimum which resulted in the company's workforce being slashed from 2,200 employees in November to 360.

Additionally, the employees, the board, senior management and staff have taken a 20 per cent cut to their salaries and fees.

Shares in Anvil were untraded at $1.21 at 15:19 AEDT.