Thompson Creek Metals is looking to save money at their Idaho mine and hope to maintain momentum on construction of Mount Milligan.
The company will be stopping stripping for their next production phase at their Idaho mine.
The company announced the plan last week and said it will save in operational costs at their Thomspon Creek mine as molybdenum prices remain low.
Production will still be taking place at the mine, however, and the halting of stripping activity is expected to save $100 million in operating costs and $8-9 million in capital expenditures for the company.
The workforce at the mine will be reduced by 100 employees.
Production at the mine will continue through 2014, and stripping could be restarted if market conditions are favourable, and if stripping is not restarted, the mine will be mothballed in 2015.
“As a result of continuing weakness and uncertainty in the world economy, we have decided to reduce our costs, strengthen our balance sheet, and conserve cash, said Kevin Loughrey, chairman and chief executive officer of Thompson Creek in the release. “This will allow for greater certainty in accessing our existing financings in order to complete the development of Mt. Milligan, while we preserve the assets at Thompson Creek until market conditions strengthen.”
Mount Milligan is reportedly on schedule and within their $1.5 billion budget.
The mine is expected to begin commissioning in the second quarter of 2013 and be in full production by the fourth quarter of 2013.