Tara closure from mid-July unavoidable

Hopes that last week's intensive talks between trade unions and management at Tara Mines could avert the proposed temporary closure of the mine have been dashed.

Tara Mines will go into care and maintenance mode from mid July as management announced today that cost cutting proposals by the trade unions were not enough to prevent the closure.

Following intensive talks last week at which the trade unions put forward cost savings measures in a bid to avert the closure, management announced this morning that the temporary suspension of mining would go ahead.

"Unfortunately, the proposals will not sufficiently address, in the short term, the significant and unsustainable losses that the business is currently experiencing. These losses have been driven by several factors including a decline in the price of zinc, high energy prices, general cost inflation and operational challenges," according to a statement from the company.

The company points out that following the announcement on 13th June that the mine would enter a ‘care and maintenance’ period, Boliden Tara Mines had engaged extensively with representatives from the company’s group of unions.

"The Boliden Tara Mines management team attended two days of constructive meetings with the union representatives on Monday 19th and Tuesday 20th June 2023, at which the unions presented suggestions for costs saving and operational improvements.

"The management has reviewed in detail all the proposals that have been presented, and believe that a number of the measures presented have the potential to deliver benefits to our operation over the medium to long term.

"It is with great regret that the decision to temporarily suspend operations and place the mine into care and maintenance from mid-July is unavoidable."

Boliden Tara Mines General Manager Gunnar Nystrom said: “We have not taken this decision lightly, but we believe this is the best course of action to safeguard the long-term future of the mine. We will continue to work constructively with all stakeholders to ensure the operation can re-open as soon as possible.”