Boliden has decided to resume production at the Canadian mine in Myra Falls, which has been closed since December 2001. The decision was made after an agreement had been reached with employees, unions, suppliers and customers regarding an extensive action plan. The plan contains measures aiming at improved operating efficiency of operating the business. The mine now has the prerequisites to be run in a financially sound manner, even during periods when world market metal prices are low.
-Despite the fact that Myra Falls is a mine with high grade mineral reserves, the support for the action plan was a prerequisite for the continued production at the mine. My opinion is that with the action plan in place, we will reach an operating profit at Myra Falls by the third quarter 2002, said Jan Johansson, Boliden's president and CEO.
According to the plan, the workforce will be reduced by approximately 17 per cent. Wages, salaries, contracts with suppliers and contractors are adjusted.
Production at the mine was suspended at the beginning of December 2001 in order to enable an evaluation of possible solutions, such as sale, closure or potential steps of running the mine in a more efficient way.
Myra Falls has been in production for 36 years and owned by Boliden since 1998. It is a mine with high-grade mineral reserves and very good exploration potential.
For more information, please contact:
Jan Johansson, CEO and President Boliden AB, phone: +46 8 610 15 00 or +46 705 55 02 02