Draslovka Holding cut production of sodium cyanide (NaCN) to a minimum level at its facility in Kolín, Czech Republic. The move follows an “unprecedented spike in input costs resulting from the invasion of Ukraine by the Russian Federation,” the company said.
Before the invasion, costs were near historic highs. Since the invasion, NaCN production costs in Europe have almost tripled, Draslovka said.
“Spiking gas and raw materials prices, ever-increasing shipping costs and the economic isolation of the Russian Federation exaggerate the long-term market dynamics at play,” the company said, “making the manufacture of NaCN in Europe temporarily uneconomical with the current spot prices not currently covering the variable costs of NaCN production in EU.”
Draslovka Mining Solutions plant in Memphis, America’s largest sodium cyanide production facility, is unaffected by this decision, Draslovka reported. It will be fully utilized to ensure the ongoing seamless supply to customers.