North American Palladium's Lac des Iles Mine in northwestern mine is the latest, and biggest, casualty of plunging nickel and metal prices. The mine will be placed under care and maintenance as of Oct. 29. The temporary closure will result in the layoff of 350 employees.
Lac des Iles is one of four mines in Northern Ontario to temporarily close all or parts of their operations, laying off hundreds of people.
"The temporary closure of the mine will allow us to conserve cash and focus on strategic initiatives that we believe will help enhance shareholder value over the long term, while we wait for metal prices to recover," said NAP president and CEO William Biggar in an Oct. 21 statement. The mine is 85 km north of Thunder Bay.
In the Sudbury area, First Nickel, FNX Mining and Ursa Major Minerals announced whole or partial production suspensions as operating costs were coming under pressure from falling commodity prices.
Sudbury miner First Nickel announced Oct. 19, it was suspending operations at its flagship Lockerby Mine. The 150,000 annual tonne producer is laying off 140 of its 160 workers at its only mine in the city's west end.
Within days, FNX Mining suspended commercial production in part of its Levack Mine complex, north of the city.
No layoffs are coming among its 800-person workforce, says FNX investor relations spokesman Dave Constable. Employees will be shifted to other high margin operations at McCreedy West, Podolsky and other deposits.
"It's no big consequence for us. We don't have a mill and a smelter to feed and other operations dependent on this."
The news comes on the heels of Ursa Major Minerals' decision Oct. 9 to temporarily shut down pre-production at its Shakespeare Nickel Project, 70 km west of Sudbury.
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