Continued challenging global market conditions for commodities, especially minerals and metals, have forced Nyrstar to postpone funding of its Myra Falls mine site upgrades, the company announced yesterday.
This decision extends the suspension of regular mining and milling operations announced in April as well as a postponement of capital investment. Parallel with the announced postponement of capital investment, a reduction of 88 employees has been necessary, a company statement says.
Nyrstar is and will continue to be committed to the highest standards of safety of its employees, facilities and environmental stewardship at Myra Falls. The company also continues to operate within existing labour agreements.
“We’re in a different situation now than we were in April,” said Kelly Strong, Vice President, North American Operations, Nyrstar Mining. “Postponing funding has become necessary due to the challenging marketplace. Commodity prices dictate that the company cannot progress steps towards implementation of our roadmap for renewal at this time, so the pace of investment at the site will take longer than anticipated.
“We remain focused on improving efficiency and sustainability over the long term,” added Strong. “Nyrstar remains positive in the medium to long-term outlook for zinc as an essential commodity. We intend to do whatever is necessary to fully optimize the potential of the mine. In the meantime, I want to acknowledge the great work that’s been done by a dedicated core team of employees, who have been working hard to keep the renewal plan moving forward.”
In order to ensure all local and regional stakeholders are informed of our activities, the company continues to meet with employee unions, municipal and provincial governments, and area First Nations.