TORONTO (miningweekly.com) – Denver, Colorado-based Thompson Creek Metals would suspend operations at its Endako molybdenum mine, in British Columbia, at the end of the month, as a result of the continued weakness in the molybdenum market.
The NYSE- and TSX-listed miner said that about half of its salaried employees at the Endako operation would be terminated resulting in estimated severance costs of about C$1.7-million.
Hourly employees at the mine were notified on Wednesday that their employment would be temporarily suspended in 60 days.
Thompson Creek said that operational improvements during 2014 were not enough for the mine to weather the current and expected molybdenum price weakness in the near term.
Thompson Creek held a 75% interest in the Endako mine, and joint venture partner Sojitz Moly Resources the remaining 25% interest.
Thompson Creek last month said that mining of Phase 7 ore at its namesake Thompson Creek mine, in Idaho, was completed in August and the company expected to process stockpiled ore through the remainder of this year. Thereafter, the mine would be placed on care and maintenance.
However, while in care and maintenance, the company intends to conduct limited stripping operations for the next phase of mining, which would enable it to maintain the optionality of the mine with a reduced workforce, while continuing to evaluate alternatives for the next stage of mining.
The miner, which had diversified its portfolio to include copper and gold, is ramping up output from its new flagship $1.5-billion Mt Milligan copper/gold mine, in British Columbia. The operation reached commercial production in February.
Meanwhile, Thompson Creek on Monday announced that president and COO Scott Shellhaas was leaving on Friday, and the board appointed CEO Jacques Perron as president effective immediately.
The company noted that as it prepared to place the Thompson Creek molybdenum mine into care and maintenance at year-end, it had streamlined the management of its operations and eliminated the position of COO.