Mining company Thompson Creek Metals and its joint venture partner Sojitz Moly Resources have agreed to suspend operations at the Endako molybdenum mine near Fraser Lake, British Columbia.
Operations will be temporarily suspended from 31 December due to continued weakness in the molybdenum market.
During this period, the company will terminate around 50% of salaried employees at the Endako mine, which is expected to result in estimated severance costs of C$1.7m ($1.48m).
Thompson Creek notified the hourly employees at the mine that their employment will be suspended in sixty days.
Thompson Creek Metals president and CEO Jacques Perron said: “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 and all stakeholders during this challenging time.”
Endako mine is 75%-owned by Thompson Creek and 25% by Sojitz Moly Resources.
Thompson Creek’s principal operating properties are its 100%-owned Mt Milligan mine, its 100%-owned TC mine, its 75% joint venture interest in the Endako mine and the Langeloth metallurgical facility in Pennsylvania.