Low copper prices force Gibraltar closure

Persistently low copper prices have prompted Gibraltar Mines (TSE) to shut down its mine and mill at McLeese Lake, B.C.

Staged layoffs took effect Nov. 26; mining and milling ceased four days later.

Despite the shutdown, copper production through dump leaching and solvent extraction will continue at the mine.

Gibraltar had already cut production by half in an attempt to stem losses, but the price of the red metal continued to erode.

A loss of $6.2 million was reported for the first nine months of the year, based on an average price of US90 cents per lb. Considering that the current price is about US74 cents per lb., larger losses seemed likely. Of the company’s 196 full-time workers, 125 will be let go. However, many employees will be kept on to study “re-start scenarios” and other opportunities under review.

Regardless of the mothballing, a feasibility study on a proposed mill expansion is expected by the new year. The plan calls for capacity to be raised to 57,000 from 38,000 tons per day.

President William Myckatyn said every effort will be made to resume operations but that a significant increase in the copper price is essential.