650 WORKERS LAID OFF Europe's largest zinc mine suspends production

(Patria) - Swedish mining company Boliden announced it will suspend production at its zinc mine in Ireland due to financial problems caused by falling metal prices and high costs.

Yesterday, the Swedish mining company announced the suspension of operations at the Tara mine, without specifying when zinc extraction might resume.

"We are actively working to extend the mine's lifespan while maintaining its competitiveness. Cash flow is currently negative due to a combination of factors, including business challenges, falling zinc prices, high energy costs, and general cost increases.

We will suspend production and temporarily lay off workers until operating conditions improve," Boliden stated.

The General Manager of Boliden Tara mine, Gunnar Nystrom, said the company is aware of the impact of this decision on employees in the Navan area.

"In the long-term interest of the Boliden Tara mine, we have made the decision to temporarily suspend operations. Unfortunately, this will mean that up to 650 employees will be temporarily laid off.

We are fully aware of the difficulties and changes this decision will bring to our employees, as well as to the wider community in Navan, where the mine has been operating since 1977.

We did not make this decision lightly, but we simply must stop the currently unsustainable trend of cash outflow to protect the long-term future of the mine.

We are not sure how long this period will last, but we believe the situation is temporary and we will constantly monitor it," Nystrom said.

The Tara mine has about 650 employees and is the largest zinc mine in Europe and the eighth largest in the world. It produces 200,000 tons of zinc concentrate and 40,000 tons of lead concentrate.

Zinc is commercially used for processing iron and steel to protect against corrosion, Hina reports.