Polish miner modifies project due to commodity prices
Updated at 1:56 p.m.: KGHM International confirmed Tuesday it has eliminated 20 positions at its Victoria project in Sudbury, and suspended some contracts.
“As a result of the decision to revise the Victoria project’s schedule due to the unfavourable macroeconomic situation on the metals market, the decision was made in March to optimize the employment structure of the Victoria project to adapt it to the project’s tasks which are planned in 2016,” said KGHM spokesperson Galina Meleger, in an email to NorthernLife.ca.
“This process will enable the project to optimize its activities in 2016 and at the same time will ensure maximum organizational cost efficiency.”
KGHM International is expected to provide an update on its Victoria Mine project in Sudbury later today, said a company representative.
NorthernLife.ca received emails last week from sources close to the mine that as many as 50 workers involved with the project have been laid off, and the company is shutting down “a good chunk” of the operation.
After numerous calls the Polish miner would neither confirm nor deny reports of layoffs at the mine site.
In its consolidated annual report, issued Friday, March 18, 2016, the company said about the Victoria Mine project: “Due to the current macroeconomic situation, the Management Board of KGHM Polska Miedz S.A. decided to modify the adopted schedule for the project.”
The mining company (formerly FNX) signaled in its consolidated annual report it intends to reduce its copper production in the next year.
KGHM posted a loss of US $1.3 billion at the group level in 2015.
“The past year was a period of increasing challenges on the international commodities market,” KGHM board president Krzysztof Skóra said in a note to investors. “These challenges were largely due to falling commodities prices caused by unfavourable macroeconomic conditions. Also of significance was, among others, the economic slowdown in China and the record low oil prices.”
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