Northern cuts jobs, wages

Northern Minerals is cutting salaries and reducing its head count to reduce costs as it seeks to complete the next stage of funding for its Browns Range rare earth project near Halls Creek.

Northern has slashed chief executive George Bauk’s salary in half, to $202,575, as well as its directors’ fees and all executive employment contracts.

However, if the company obtains $10 million in capital within six months, the executive and director remuneration will be increased to 80 per cent of current salary packages.

Northern has also made a number of redundancies at its head office and at Browns Range, while remaining staff contracts have been reset with a 20 per cent cut.

It will also introduce a 'stand down period' for a majority of employees, until a funding transaction with China-based Jien Mining is completed.

Chairman Conglin Yue said the measures had been introduced after a board review of resourcing and project requirements in the short term.

“We are in a position where we have a good funding pipeline in place, but the board believes it is prudent in the current environment to review our operating structure, and where possible, introduce mechanisms to optimise it,” Mr Yue said.

“We are now running into the northern wet season which will impact our planned exploration and work programs on site.

“We believe it is appropriate to introduce these measures now, to ensure the business is in the best possible position to deliver our objectives at Browns Range over the next 12 months and beyond.”

Mr Bauk said the measures included some difficult decisions, but they reflected the current environment and struck the best balance for Northern’s future.

“Our focus remains on the end game, and about ensuring we are in the best position possible to capitalise on Browns Range, to the benefit of all our stakeholders,” he said.

Last week, Northern announced it had signed a $US4 million financing agreement with an entity managed by US asset management firm The Lind Partners, while Jien Mining will complete a $17 million investment in Northern by the end of the month.

Northern shares were unchanged at 17 cents each at 10:45am.