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Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) and its joint venture partner, Sojitz Moly Resources Inc., have placed the Endako molybdenum mine on temporary suspension, effective December 31, 2014, due to continued weakness in the molybdenum market.
Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) and its joint venture partner, Sojitz Moly Resources Inc., have placed the Endako molybdenum mine on temporary suspension, effective December 31, 2014, due to continued weakness in the molybdenum market.
As quoted in the press release:
Approximately 50% of salaried employees at the Endako Mine will be terminated, resulting in estimated severance costs of approximately C$1.7 million. Hourly employees at the Mine were notified today that their employment will be temporarily suspended in sixty days, and will remain so suspended while the Mine is on temporary suspension.
Jacques Perron, president and CEO of Thompson Creek, commented:
We expected that the operational improvements that we implemented in 2014 would have been sufficient to keep the Endako Mine operating profitably during this prolonged volatility in the molybdenum market, but as a result of the current and expected molybdenum price weakness in the near term, we have no other option but to place the Mine on temporary suspension. 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 a nd all stakeholders during this challenging time.
Click here for Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC)Â press release.