Thompson Creek Metals Company and its joint venture partner, Sojitz Moly Resources Inc, have agreed to place the Endako molybdenum mine on care and maintenance from 1 July 2015, due to continued weakness in the molybdenum market. Thompson Creek holds a 75% interest in the Endako Mine, and Sojitz holds the remaining 25% interest. Around 270 employees will also be let go.
The company estimates that its share of total costs at the Endako mine for 2015, which includes temporary suspension costs through 1 July, expected care and maintenance costs for the remainder of 2015, and one-time severance costs for the reduction in work force, will be approximately US$20 million. The company estimates that its share of care and maintenance costs in 2016 will be approximately US$4–US$5 million. 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 US$10– US$15 million.
‘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,’ said Jacques Perron, president and CEO of Thompson Creek, commented. ‘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.’
This story is reprinted from material from Thompson Creek Co, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
