Mining companies announce layoffs

Layoffs were announced this summer at several British Columbia mining operations, the most recent affecting 98 employees at the Myra Falls underground copper-zinc mine complex operated by Westmin Resources (TSE) near Campbell River.

Westmin said the operation’s financial performance has been continuously deteriorating over the past year as a result of falling ore grades and adverse metal prices and exchange rates. The layoff of 87 union employees and 11 technical and administrative staff took effect on Aug. 23. The company noted that the employee reduction should be achieved with minimal loss of production because of productivity improvements now in progress or put into place earlier this year. Other measures to cut costs and improve productivity are being considered, which may result in further layoffs at Myra Falls this fall.

Earlier this summer, Afton Mines, owned 73% by Teck (TSE), issued layoff notices to employees of its copper-gold mining operation near Kamloops, B.C. About 180 personnel were affected by the shutdown which took effect on Aug. 23.

Teck recently began managing the Quintette coal mining operation in northeastern British Columbia owned by Denison Mines and several international companies. Layoff notices were recently issued to most of Quintette’s 18-member head office in Vancouver, including Paul Kostiuk, president.

Teck does not own an interest in Quintette, although speculation is that it may buy Denison’s interest. Since taking over management of the debt-ridden coal mining operation, Teck is continuing efforts to restructure Quintette’s debt and negotiate a new coal price with its Japanese customers.