Zinc miner Breakwater Resources (BWR-T, BWLRF-o) is suspending operations at its Langlois mine, 200 km north of Val d’Or, Que., and the Myra Falls mine on Vancouver Island, B. C.
The company says falling commodity prices and the general deterioration of the short-term global economic outlook prompted the shutdown. Zinc fell to about US49 a lb. on Oct. 28, a low not seen since 2004.
Breakwater says operational improvements it has made to cut costs are not having as great an impact as expected because of the economic slowdown and lower metal prices.
In 2007, the Langlois mine produced more than 28,000 tonnes of zinc in concentrate, 1,300 tonnes of copper in concentrate and 160 million oz. of silver. The mine has operated at a rate of 2,000 tonnes per day, five days a week.
Last year at Myra Falls, nearly 30,000 tonnes zinc in concentrate, 6,000 tonnes copper in concentrate, 811,000 oz. silver and 19,000 oz. gold were produced.
Breakwater also operates the El Mochito zinc mine in Honduras and the El Toqui mine in Chile, which will now account for all of the company’s revenue. El Mochito produced 29,000 tonnes zinc in concentrate, 10,000 tonnes of lead in concentrate and 1.7 million oz. silver in 2007. El Toqui produced about 32,000 tonnes of zinc in concentrate, 37,000 oz. gold and 156,000 oz. silver last year.
In addition, Breakwater has a 20% interest in Blue Note Mining’s (BN-T, BNMFF-o) Caribou and Restigouche zinc-lead mines in Bathurst, N. B. Blue Note put those mines on care and maintenance in mid-October, because commodity prices have made the mines unprofitable.
Be the first to comment on "Breakwater closes mines"