Thompson Creek Metals announced in early June that it would place the Endako molybdenum mine in British Columbia on care and maintenance effective July 1 due to continued weakness in the molybdenum market. Approximately 270 employees will be terminated.

Thompson Creek holds a 75% interest in Endako; Sojitz Moly Resources holds the remaining 25%. The mine had been under a “temporary suspension” of production since year-end 2014.

Thompson Creek President and CEO Jacques Perron said, “When we announced our decision to place Endako mine on temporary suspension, we had hoped for some recovery in the molybdenum market. Nonetheless, market conditions have remained weak through May and are likely to remain so for the foreseeable future.

“The current and expected molybdenum price cannot support profitable operations at Endako, and, as a result, we believe the best course of action is to place the mine on care and maintenance. We will continue to closely monitor market conditions and re-evaluate the status of the mine as market conditions warrant. We would like to express our gratitude to our employees, joint venture partner, and all stakeholders during this challenging time.”

Thompson Creek estimates that its share of total costs at Endako for 2015, including temporary suspension costs through July 1, expected care and maintenance costs for the remainder of 2015, and one-time severance costs for the reduction in workforce, will be approximately $20 million, using an exchange rate of US$1 = C$1.22. The company estimated that its share of care and maintenance costs in 2016 will be in the range of $4 million to $5 million.

The Endako mine is located 100 km northwest of Prince George, British Columbia. The fully integrated facility includes a concentrator and a multiple-hearth roasting facility that converts molybdenum disulphide concentrate into technical grade molybdenum oxide.