A Vancouver Island mining and milling operation that employs 450 people is “no longer financially viable,” and is being placed on what the company describes as long-term care and maintenance.
The Myra Falls Mine has operated about 90 kilometres southwest of Campbell River since 1965 and has undergone substantial modernizations and new majority ownership since 2019.
The mine produces more than 800,000 metric tonnes of zinc, lead, and copper ore per year.
Higher operating costs and lower metal prices, however, have pushed it to seek creditor protection so the company can be restructured, it said in a Monday statement.
“We recognize that this decision will be difficult news for our employees and other stakeholders, and is in no way a reflection of the hard work and commitment of our people in recent years,” said general manager Hein Frey in the statement.
“Myra Falls Mine will now undergo a period of restructuring with the aim of returning to active operations in the future when market conditions allow.”
The union representing the mine and milling workers has said most of its members will be “immediately laid off” as a result of the announcement, and paid only for the next two weeks.
“The company insists that this is not a closure but it’s hard to be optimistic when your employer is applying for creditor protection,” said Gavin McGarrigle, Unifor western regional director in a news statement.
Local 3019 represents 300 people at the Myra Falls Mine.
In its notice to the union, the company blamed low metal prices and operating costs for the suspension of operations.
Unifor represents 300 members at the mine.
Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.
Global News has reached out to Campbell River’s mayor for comment on this story.
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