Troy Mine shows sign of recovery

Starting Monday, Troy mine worker wages will be completely restored to pre-December 2008 levels, a sign of recovery for a company that was on the brink of closing one year ago.

“We’re in a better position now, and these guys really do deserve it,” said John Shanahan, chief executive officer of Revett Minerals, Troy Mine’s parent company.

When metal prices took a nose-dive during the fourth quarter of 2008, Troy Mine employees received a 10-percent pay cut and a 60-day notice that the mine could soon close. Troy Mine managers and Revett executives took an even larger cut that has not yet been restored.

While Revett board members scrambled to attract more investors, restructure debt and reduce production costs, Troy Mine’s approximately 180 employees worked hard to up production despite paycuts, Shanahan said.

“These guys did something that I really thought wasn’t possible,” Shanahan said. “This is a story of perseverance – people coming together in really tough times and people being proud of what they can achieve.”

Revett restored 5 percent of employee wages in July with a promise to look at reinstating their full wage at the end of the year.

“We’ve still got a lot of work to do, but you know, promises are promises,” Shanahan said. “These guys kept their end of the bargain and as a company, we have to keep ours.”

Copper and silver prices continue to hover a little above their prior three-year averages, and projections for 2010 look promising as long as metal prices and costs of consumables, such as steel and fuel, remain stable.  

“Giving back the 5 percent is money in their pocket,” said Tim Lindsey, chair of Revett’s board of directors, “but it’s also a sign to them that we didn’t only survive – we’re moving forward.”

Lindsey said the company is transitioning from survival mode to sustainability, with an eye toward future growth. But Troy Mine management and Revett executives will continue with their reduced salaries, Lindsey said, until the company has completely recovered.

“Management have not had their salaries restored,” Lindsey said, “but we need a little more time to look back and say, ‘All right, now we’ve really crossed that threshold.’”