Thompson Creek Metals to suspend work at Endako molybdenum mine

Wed Dec 10, 2014 3:42pm EST
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TORONTO Dec 10 (Reuters) - Thompson Creek Metals Co said on Wednesday it will put its Endako molybdenum mine, near Fraser Lake, British Columbia, on temporary suspension at year-end due to weak prices.

About half the salaried employees at the mine will be terminated, resulting in an approximate C$1.7 million ($1.48 million) severance charge, said Colorado-based Thompson Creek.

Thompson Creek, which owns 75 percent of the mine, said it will re-evaluate the mine's status as market conditions warrant. Japan's Sojitz Moly Resources Inc holds 25 percent of Endako.

Operational improvements made in 2014 were not enough to keep the mine operating profitably during a prolonged weakness in molybdenum prices, Thompson Creek said.

($1 = 1.1488 Canadian dollars) (Reporting by Susan Taylor; Editing by Alan Crosby)