Blaming a long slump in metals prices, mining company KGHM on Wednesday announced it was shuttering its Levack Mine’s Morrison Deposit, throwing more than 100 people out of work.
“This is not an easy situation for the employees and families impacted,” general manager Steve Dunlop said in a release. “We are a small company and we all know each other quite well. This announcement hasn’t been a surprise for many of our people as this is a cyclical industry and we have been openly working with them on solutions to our financial challenges at Morrison — but that certainly doesn’t make this any easier.
“We were really hoping the mining sector would have recovered by now.” KGHM, a Polish-owned company, said the commodities market has been struggling and slow to recover, which is putting immense financial pressures on resource-based companies around the world and locally — as witnessed by cutbacks with other local operators in the past year.
“This is considered to be one of the longest mining down cycles in recent history, pushing almost 10 years in Sudbury,” the company said. To deal with this, KGHM Sudbury said it has begun the process of moving its Levack Mine’s Morrison Deposit into care and maintenance mode, with completion in the spring.
Care and maintenance means the company won’t be mining ore at the mine, but will keep it open with reduced employees until markets improve making mining ore at Morrison profitable again.
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