Mayor says news of layoffs is ‘disheartening’
The owner of the Caribou Mine in northern New Brunswick has suspended the extraction of all minerals at the site while it reviews its operations. Trevali Mining Corp. announced Tuesday it would explore all options for the future of the mine near Bathurst after reporting low productivity rates and a steep drop in revenue.
In an email Wednesday, Jason Mercier, Trevali’s director of investor relations, confirmed the decision to halt production. The news comes after the Vancouver-based company released its second-quarter financial results, which showed it recorded a 44 per cent decrease in revenue compared to the previous quarter.
Trevali said it wouldn’t be able to meet a deadline today to pay a $7.5 million debt to one of its lenders.
The company blamed the financial results partially on the Caribou Mine, citing “operational performance issues” and low productivity rates. It also says it suffered a loss of $15.2 million following flooding at its mine in Burkina Faso.
The Caribou Mine is located about 50 kilometres west of Bathurst and produces zinc, lead and silver. It employs over 200 people.
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