Vancouver — Having failed to sell its Gordonsville and Clinch Valley lead-zinc mines, Australian-based
Situated in Tennessee, the mines are low-grade operations that have not provided satisfactory returns on investment.
Gordonsville is set to close in six months. However, if mine management can demonstrate the economic viability of the higher-grade Cumberland deposit, operations may continue on a reduced scale.
No firm date has been given for the Clinch Valley closure.
The two mines will continue to supply the Clarksville refinery, and contracts have been put in place to cover the refinery’s requirements beyond the mine closures.
“The Clarksville zinc plant . . . will continue to operate and make a major contribution to the restructured Pasminco,” states Greig Gailey, chief executive officer of Pasminco.
Pasminco remains in dire financial straits after collapsing under the weight of hedging losses, debt, and low metal prices. The company intends to re-list next year.
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