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MEI Online: Plant Operation News: North America: Feb.24, 2009

 
 

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:: HudBay to Suspend Operations at Its Chisel North Mine and Snow Lake Concentrator

HudBay Minerals Inc. has determined that it will suspend operations at its Chisel North mine and concentrator in Snow Lake, Manitoba due to depressed prices of base metals, and the economic downturn. The company will place both the mine and concentrator under care and maintenance until economic conditions warrant re-evaluation.

"We recognize this will be difficult for Snow Lake, and we're committed to working with the community throughout this challenging period. We regret the impact this will have on the community and our employees. I'd like to thank the Chisel North operations team for its contribution to the growth of HudBay," said Allen J. Palmiere, the company's chief executive officer. "The discovery of the Lalor deposit illustrates the excellent exploration opportunities available in the area, and I believe the Chisel North mine and the Snow Lake concentrator remain important assets in the ongoing feasibility and future productivity of the Lalor deposit."

HudBay will work closely with its employees and the unions as well as the Province of Manitoba to assist in mitigating the impact the suspension will have on the approximately 100 workers at the mine and concentrator. The company expects the mine to suspend operations in late February, with closure of the concentrator to occur by the end of May. A small group of employees will be retained to keep the facilities on care and maintenance.

HudBay will work to ensure a safe suspension of operations, and is committed to continuing to maintain high environmental standards during the care and maintenance period. The company will continue to monitor and manage the water treatment plant, as well as monitor the tailings management facility on an ongoing basis.

The Chisel North mine is located approximately 705 kilometres from Winnipeg, Manitoba. In the nine months ended September 30, 2008, it produced 243,078 tonnes of ore, and has produced approximately 2.5 million tonnes of ore between June 2000, when commercial production began, and September 30, 2008.

 

 

   

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