[News] Antimony mine closes in central Newfoundland, citing COVID-19 struggles

[_Happy boy]

 

An antimony mine in central Newfoundland has suspended its operations and laid off almost all its employees, saying it's not financially feasible to operate during the continuing COVID-19 pandemic.

Management at Beaver Brook Antimony Mine made the "extremely difficult decision" to close up on Tuesday, laying off most people on its payroll, Site Manager Shane Osmond said in a news release.

"The majority of our valued workforce were unfortunately laid off," he said.

The statement said more layoffs would be coming in the next week.

"This is not a decision we take lightly and fully understand the resulting impacts on our workforce and local communities," Osmond said in the statement.

The mine, 43 kilometres outside of Glenwood, reopened in 2019 after years on hiatus 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.

It had more than 100 people on its payroll when in full swing, but its success was short-lived.

The mine's ability to operate in 2020 was hampered by COVID-19, Osmond said, with production temporarily paused in March as public health restrictions hit the province, and then restarted in July at a limited capacity.

But the second wave of COVID-19 sweeping across Canada and the globe, combined with "significant negative impacts the crisis has had on our financial situation" along with increased costs to operate in winter mean the company can no longer operate at this time.

"We have so far taken every reasonable measure to prevent this suspension but were sadly unable to do so," Osmond said.

Hope for reopening
The closure may not be permanent, as Osmond said the company will continue to "assess the viability of restarting the project" throughout the upcoming winter and spring.

The head of a non-profit mining association in Newfoundland and Labrador called the shutdown "unfortunate," but Ed Moriarity said that hope remains for a reopening.

"I am heartened, at least, by the notion that the company has noted that they haven't given up on the operation," Moriarity, the executive director of Mining Industry NL, told CBC News.

A few people at the mine still have their jobs to keep tabs on the situation and fulfil obligations like environmental responsibilities, according to the Beaver Brook release.

Moriarity said pandemic-caused disruptions to global supply chains, rather than public health restrictions, are likely at play and have caused sluggish demand for antimony, a mineral used in a number of industries, including the production of batteries, bullets, glass, pottery and cosmetics.

"Our association is certainly monitoring the situation carefully, and any help we can do to support further market access or to better understand the opportunities in terms of the antimony deposit, here and around the world, we'd be happy to participate and support," he said.