Thompson Creek to lay off 100 workers

Thompson Creek Metals Company, Inc. Has announced it will reduce its Challis mining operation workforce by approximately 100 workers between now and 2014. In a news release, the company said that effective this week it would suspend stripping activity associated with the next phase of production at the Thompson Creek mine.

Thompson Creek Chairman and Chief Executive Officer Kevin Loughrey said, “As a result of continuing weakness and uncertainty in the world economy, we have decided to reduce our costs, strengthen our balance sheet, and conserve cash. This will allow for greater certainty in accessing our existing financings in order to complete the development of Mt. Milligan, while we preserve the assets at Thompson Creek until market conditions strengthen.”

The company said it expects to restart the mine plan when market conditions warrant. As a result of the change, the company expects to save approximately $100 million in operating costs and $8 million to $9 million in capital expenditures.

The Thompson Creek Mine is expected to produce 20-22 million pounds of molybdenum in 2013 and 17-19 million pounds in 2014.