Low prices prompt HudBay to shut Balmat zinc mine
reuters.com
Thu Aug 21, 2008 6:26pm EDT
CALGARY, Alberta, Aug 21 (Reuters) - HudBay Minerals Inc. (HBM.TO: Quote, Profile, Research, Stock Buzz) said on Thursday it is closing the Balmat, New York, zinc mine and concentrator because of low prices for the metal, cutting about 200 jobs.
The company said the mine will close on Friday, with just a small group of employees kept on to maintain the facility.
"As a result of lower prices for zinc metal, continued high operating costs associated with the geology of the Balmat mine and general inflationary pressures, HudBay has determined that its Balmat operation is not economically viable given current market conditions," the company said in a statement.
The mid-tier copper and zinc producer said it would not incur any significant costs for closing the mine. However it does expect its zinc production for 2008 to be at the lower end of its 120,000 to 150,000 tonne target range.
Zinc prices have dropped more than 25 percent since the start of the year.
HudBay shares rose 39 Canadian cents to C$11.40 on the Toronto Stock Exchange on Thursday. The shares have fallen 48 percent over the past 12 months. ($1=$1.04 Canadian) (Reporting by Scott Haggett; editing by Rob Wilson)
© Thomson Reuters 2008 All rights reserved |
