The 1st cited article: 9/6/2013 6:00:00 AM 4
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Posted On: 05/05/2014 3:22:43 PM
The 1st cited article:
9/6/2013 6:00:00 AM
40 workers laid off at Mineral Park Mine
Price of molybdenum blamed
Kim Steele
Miner Staff Reporter
GOLDEN VALLEY - Mineral Park Mine cut its workforce by 10 percent, or 40 employees, Wednesday in an effort to lower costs and remain open long-term, according to the company's general manager.
Joe Campbell, who has been in charge of the mine for about a year, said Thursday the permanent reduction was necessary because of slow economic conditions.
The company, which bills itself as northern Arizona's largest copper and molybdenum mine, also is looking at other options for saving money, including additional financing or merging with another mine.
"We're both a copper and molybdenum mine, which is important to remember because we depend on the prices of both metals, not just one," said Campbell. "The price of copper has been good, but there has been a 22 percent drop in molybdenum since January.
"The price will go back up at some point, but no one knows when. Until then, we're looking at multiple ways to ride this out."
Currently, molybdenum is selling for about $9.50 a pound, said Campbell. Last year, it sold for about $13 a pound, and when Mercator Minerals bought the mine in 2007, molybdenum was about $30 a pound. Mineral Park Mine, located at 8275 N. Mineral Park Road, is an open pit copper mine with an estimated 20-year life expectancy remaining as of June.
Its stated goals for 2013 are to produce 93 million pounds of copper equivalent, 11 million pounds of molybdenum and 620,000 ounces of silver.
The job cuts took place in all departments, said Campbell, and management talked with the employees before they were let go to make sure they understood the reduction had nothing to do with their performance. Campbell said the other cost-saving options - additional financing and mergers - are possibilitie, but nothing has been decided yet.
"This is unfortunate, but it's the nature of mining," said Campbell. "We took the reduction very seriously because it affected a lot of families. We don't want to do it, but we need to keep our doors open and as many employees working as possible until the price of molybdenum goes up again."
9/6/2013 6:00:00 AM
40 workers laid off at Mineral Park Mine
Price of molybdenum blamed
Kim Steele
Miner Staff Reporter
GOLDEN VALLEY - Mineral Park Mine cut its workforce by 10 percent, or 40 employees, Wednesday in an effort to lower costs and remain open long-term, according to the company's general manager.
Joe Campbell, who has been in charge of the mine for about a year, said Thursday the permanent reduction was necessary because of slow economic conditions.
The company, which bills itself as northern Arizona's largest copper and molybdenum mine, also is looking at other options for saving money, including additional financing or merging with another mine.
"We're both a copper and molybdenum mine, which is important to remember because we depend on the prices of both metals, not just one," said Campbell. "The price of copper has been good, but there has been a 22 percent drop in molybdenum since January.
"The price will go back up at some point, but no one knows when. Until then, we're looking at multiple ways to ride this out."
Currently, molybdenum is selling for about $9.50 a pound, said Campbell. Last year, it sold for about $13 a pound, and when Mercator Minerals bought the mine in 2007, molybdenum was about $30 a pound. Mineral Park Mine, located at 8275 N. Mineral Park Road, is an open pit copper mine with an estimated 20-year life expectancy remaining as of June.
Its stated goals for 2013 are to produce 93 million pounds of copper equivalent, 11 million pounds of molybdenum and 620,000 ounces of silver.
The job cuts took place in all departments, said Campbell, and management talked with the employees before they were let go to make sure they understood the reduction had nothing to do with their performance. Campbell said the other cost-saving options - additional financing and mergers - are possibilitie, but nothing has been decided yet.
"This is unfortunate, but it's the nature of mining," said Campbell. "We took the reduction very seriously because it affected a lot of families. We don't want to do it, but we need to keep our doors open and as many employees working as possible until the price of molybdenum goes up again."
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