Cominco cuts output

The world’s largest zinc miner is once again curtailing production in order to take advantage of an energy crisis that has boosted the spot price of power in the western United States by almost 10 times in the past year.

In order to provide more power for sale, Cominco (CLT-T) intends to reduce production at its smelter complex in Trail, B.C. for April, May and June. The company says sufficient power has already been sold to ensure that the smelter complex generates roughly as much profit as would be generated if full production were maintained during the three months.

As with previous production curtailments, Cominco has arranged to meet commitments to its customers by purchasing metal and other products. The company says no layoffs will result from the production cutbacks.

Zinc production will be reduced by 20,000 tonnes in the second quarter, which brings the total reductions to 100,000 tonnes for the period December 2000 through to September 2001.