Ireland’s Tara mine has ceased operations and its workforce has been laid off amid tough economic conditions, owner Boliden AB announced on Tuesday.
Some 650 workers have lost their jobs, Boliden confirmed, after the zinc mine was placed under “care and maintenance until further notice”.
“Boliden is working actively to extend the life of the mine in parallel with ensuring its competitiveness,” the company said. However, “the business is currently cash flow negative.”
This is due to “operational challenges, a decline in the price of zinc, high energy prices and general cost inflation,” Boliden added.
Zinc prices peaked at over US$4,400 per tonne in April last year, as the war in Ukraine forced up prices of commodities, though one tonne of the metal has since fallen to US$2,419, according to Trading Economics.
Tara, to the northwest of Dublin in Navan, County Meath, is the world’s eighth-largest zinc mine and is the biggest in Europe.
Production began at the site in 1977, with Swedish miner Boliden then acquiring the facility in 2004.
Boliden shares slumped 7% to 320.60 Swedish krona following the news.