Mining operations in the Sudbury Basin took another hit as FNX Mining Company Inc. announced it will extend the suspension of nickel ore production at its Levack Mine and its McCreedy West Mine immediately.
The decision affects 307 employees, 59 of which will be terminated while the remaining 248 will be laid off. Voluntary severance packages are being offered to all hourly employees to potentially reduce the number of layoffs.
However, development of the company's advanced stage Levack Footwall Deposit will continue in anticipation of providing development ore by late 2009. Production on this high-grade copper-nickel-precious metal project is also expected to begin in 2010.
The Levack and McCreedy West mines will remain open and active with production from the higher-margin copper-nickel-precious metal deposits at the McCreedy West PM Deposit, Levack Rob's Deposit and the Podolsky Mine's 2000 Deposit.
Officials remained confident of the company's ability to survive the economic downturn, citing $151 million in cash with zero debt as of Sept. 30, 2008, along with $140 million in securities.
Work on the company's 2009 plan and budget is currently underway, with production guidance expected in the first quarter of 2009.
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