Wage freezes are on the cards for Oceana Gold staff as the miner continues its company wide review, which has already found more than $US100 million ($NZ126.4 million) in cost reductions.
The likelihood of a wage freeze was first mooted by Oceana chief executive Mick Wilkes in mid-June.
A company market update yesterday said wage freezes had been identified amid the cost reductions, which also include deferment of heavy earthmoving at Reefton and Macraes, the scaling back of New Zealand exploration and unspecified cuts to the use of contractors.
Oceana employs nearly 1000 staff in New Zealand, across its East Otago and West Coast operations, but the company has not released any staff-specific update during the review.
Oceana is understood to still be in negotiations with the Amalgamated Workers Union, which covers the majority of staff at Macraes in East Otago.
Yesterday's corporate presentation outlined that estimates of 2013 production and earlier cost guidance were on track.
Production at Oceana's Didipio gold and copper mine in the northern Philippines is estimated at 50,000-70,000 ounces of gold and 15,000-18,000 tonnes of copper.
Copper sales will offset the cost of producing gold, which is expected to be in the range of negative $US370 to negative $US50 per ounce for the year.
Overall, New Zealand operations for the year estimate production of 235,000-255,000 ounces of gold, at a production cash cost of $US650 to $US800 per ounce.
While the Macraes site has a mine life to 2020 at present, Oceana has announced its Reefton operations are being cut short by two years and the site will be mothballed by mid-2015.
