Operating losses have prompted Gibraltar Mines (TSE) temporarily to shut down the McLeese Lake open-pit copper mine and mill.
The recent drop in the price of copper made it necessary to conserve cash, especially after the mine reported a loss for the first quarter, said Mine Manager William Myckatyn.
Gibraltar reported a cash flow deficiency of $6 million during the quarter, including a $4.2-million charge from changes in working capital. The shutdown is scheduled from July 23 to Aug. 15. The company will, however, proceed with solvent extraction-electrowinning in the short term. The shutdown is temporary and Gibraltar fully intends to reopen the mine, said company spokesman Hugh Leggatt.
Despite such assurances, low copper prices are not working on the side of the mine union, which is negotiating a new contract. The union, represented by the Canadian Auto Workers, has been without a contract since the end of March. The union had one strike vote which failed and negotiations are continuing, Legatt said.
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