Vale Canada will suspend operations at Frood Mine in Sudbury by year's end.
Company spokeswoman Angie Robson told Northern Life newspaper there will be no direct layoffs. The mine's 85 employees will be deployed to other area operations and “all commitments under our collective agreements will be honoured.”
Vale blames market volatility and plunging metal prices for the move.
The company said Frood Mine ore is of lower value and declining grades after a century of mining, which makes it expensive to operate given lower metal prices.
“We are actually mining at a loss,” said Robson in a statement.
The company maintains that is “strongly committed” to Sudbury and will continue to make what it calls “disciplined operational decisions” to keep the company profitable.