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Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) announced plans to put the Endako molybdenum mine on care and maintenance effective July 1, 2015. According to the company, the move was driven by “continued weakness in the molybdenum market.”

Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) announced plans to put the Endako molybdenum mine on care and maintenance effective July 1, 2015. According to the company, the move was driven by “continued weakness in the molybdenum market.”

Sojitz Moly Resources Inc. is Thompson Creek’s joint venture partner at the mine, with the former owning 25 percent and the latter owning 75 percent.

As quoted in the press release:

The Company estimates that its share of total costs at the Endako Mine for 2015, which includes temporary suspension costs through July 1, expected care and maintenance costs for the remainder of 2015, and one-time severance costs for the reduction in work force, will be approximately $20 million, using an exchange rate of US$1.00 = Cdn$1.22. The Company estimates that its share of care and maintenance costs in 2016 will be approximately $4 – $5 million, using the same exchange rate. With the placement of the Endako Mine on care and maintenance, the Company expects total cash flow from its molybdenum business in 2015 to be approximately $10 – $15 million.

Jacques Perron, president and CEO of Thompson Creek, commented:

When we announced our decision to place Endako Mine on temporary suspension as of year-end 2014 we had hoped for some recovery in the molybdenum market. Nonetheless, market conditions have remained weak through May and are likely to remain so for the foreseeable future. The current and expected molybdenum price cannot support profitable operations at Endako Mine and, as a result, we believe the best course of action is to place the Mine on care and maintenance. We will continue to closely monitor market conditions and re-evaluate the status of the Mine as market conditions warrant. We would like to express our gratitude to our employees, joint venture partner and all stakeholders during this challenging time.

Click here to read the full Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) press release.

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