Nyrstar NV Placing Middle Tennessee Mines on Care and Maintenance

Nyrstar NV (EBR:RYR) reported that it is placing its Middle Tennessee Mines (MTN) on care and maintenance to minimise cash consumption in the mining segment while the Company continues to cope with the difficult metals price environment.

According to the press release:

This decision will result in approximately 50,000 tonnes of zinc in concentrate per annum being taken out of the market. Zinc metal production at the nearby Nyrstar Clarksville smelter will be reduced by about 7 percent, equivalent to ca. 9,000 metric tonnes per annum. The Nyrstar Clarksville smelter will continue to be supplied by East Tennessee Mines and additional external sources.

Middle Tennessee consists of three mines and one processing plant. A small team of essential staff will remain at the MTN sites to ensure a smooth transition into care and maintenance over the next few months, while ensuring that high safety and environmental standards are maintained.

Bill Scotting, CEO of Nyrstar, said: “The decision to put our Middle Tennessee Mining operations on care and maintenance was not taken lightly. However, given the continued depression of the metal price environment, it is the right decision for the company. We continue to take decisive action to reduce spending in our mines, and further mine operation suspensions may be necessary if the depressed metals price environment continues. We expect to complete the process to divest the majority or all of our mines over the course of 2016.

Click here to read the press release.