More than 500 workers went on strike over the weekend at Taseko Mines’ (TSX: TKO; LSE: TKO; NYSE: TGB) Gibraltar copper operation in central British Columbia, following unsuccessful contract negotiations.
A statement from the union, Unifor, says contract talks began in February, but they didn’t result in an accord with Taseko as the miner allegedly “refused to negotiate basic terms of a new collective agreement.”
Taseko Mines said in an emailed statement that it has suspended mining and milling operations at the site, adding that essential staff remain on site to maintain critical systems.
“The company remains committed to the bargaining process and reaching a fair and equitable agreement,” Taseko said.
Shares in Taseko Mines fell 2.4% on Monday in Toronto to $3.64 apiece, valuing the company at $1.1 billion. They’ve traded in a 52-week range of $1.45 to $4.20.
Only producer
The Vancouver-based miner has five mining projects in various stages of development but Gibraltar is currently the only mine actively producing.
The company became the sole owner of the mine, Canada’s second-largest open-pit copper mine and the main employer in the Cariboo region of B.C., in March this year.
Around the same time, Taseko posted its highest ever revenue of US$525 million for 2023 thanks mainly to the contribution of Gibraltar mine. The revenue represented a 34% increase compared to 2022.
The copper mine produced last year a total of 122.6 million lb. of copper, with an average copper recovery rate of 82.6% and head grade of 0.25%. This production was higher than the company’s original guidance and also 26% higher than in 2022.
Taseko plans to start production at the Florence in-situ copper recovery mine in Arizona late next year.
It is always interesting to hear – when companies & employee;s (sp) do not get along..
Bottom line is – it;s Business – for sure..
Hopefully terms of the proposed contract — get to be sorted out, relatively soon..
kjp