JOHANNESBURG (miningweekly.com) – The world’s second-largest zinc producer, Oz Minerals, on Tuesday announced that it would put the Scuddles mine, at its Golden Grove operations in Western Australia, on care-and-maintenance.

The company stated that operating costs would be reduced by about $15-million, and zinc production for 2009 would be reduced by about 25 000 t, to between 55 000 t and 60 000 t.

“What this decision means is that we will markedly improve the site’s cost performance. This will allow us to ensure the long term sustainability of the operation,” said Oz Minerals CEO Andrew Michelmore.

Some of the Scuddles resources would be redeployed to Golden Grove’s Gossan Hill mine, and the focus would be on increasing operations at this site. By doing this, copper production would increase by about 5 000 t, to between 40 000 t and 45 000 t. This was in line with a decision taken in September last year to increase copper production at the mining operation.

Michelmore further stated that the decision to put Scuddles on care-and-maintenance would cut 50 permanent jobs and 20 contractors jobs. The remaining employees would be redeployed on the site.

“We are very conscious of the effects that this decision will have on employee and contractor numbers at the site, however, given the current continued slump in the commodity prices and the current financial challenges facing our business, we have to make tough decisions across the board,” he added.

The Golden Grove operations is located about 450 km north-east of Perth, and zinc, copper, and precious metals are exported through the nearby Port of Geraldton to smelters in China, Korea, Thailand, and India.

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