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An antimony mine in central Newfoundland has suspended its operations and fired nearly all of its employees, saying it is not financially feasible to operate during the ongoing pandemic.
Beaver Brook’s management Antimony Mine made the “extremely difficult decision” to close on Tuesday, firing most of the people on its payroll, site manager Shane Osmond said in a press release.
“Most of our valuable workforce has sadly been laid off,” he said.
The statement said more layoffs would come in the next week.
“This is not a decision that we take lightly and fully understand the impacts it has on our workforce and local communities,” Osmond said in the statement.
The mine, 43 kilometers from Glenwood, reopened in 2019 after years of disruption thanks to Chinese investors. Upon its reopening, the mine had an expected lifespan of three and a half years and made its first shipment in June 2019.
He had over 100 people on his payroll when he was in full swing, but his success was short-lived.
The mine’s ability to operate in 2020 was hampered by COVID-19, Osmond said, with production temporarily suspended in March when public health restrictions hit the province, then resuming in July with limited capacity.
But the second wave of COVID-19 sweeping Canada and the world, combined with “significant negative impacts the crisis has had on our financial situation” coupled with rising costs to operate in the winter, means the company cannot more operate right now.
“So far we have taken all reasonable steps to prevent this suspension, but unfortunately we have not been able to do so,” said Osmond.
The closure may not be final, as Osmond said the company will continue to “evaluate the viability of the project restart” during the upcoming winter and spring.
Some people still have their jobs, he said, to keep the situation in check and fulfill obligations such as environmental responsibilities.
Antimony is a mineral used in the production of batteries, bullets, glass, ceramics and cosmetics.
Read more articles from CBC Newfoundland and Labrador
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