VANCOUVER — Rough commodity markets are forcing miners to make tough decisions, and Colorado-based Thompson Creek Metals (TSX: TCM; NYSE: TC) is the most recent operator driven to place a struggling asset on temporary care and maintenance due to low metal prices. On Dec. 10 the company announced it was suspending operations at its Endako molybdenum mine roughly 190 km due west of Prince George, BC.
The move isn’t entirely surprising given the current state of moly oxide markets. After bouncing back to a high of US$15 per lb in early June the industrial metal has retreated back to near 52-week lows of US$9 per lb. CEO Jacques Perron acknowledged during Thompson Creek’s third-quarter conference call that Endako “remained challenged” due to declining ore grades, and that the company was “closely monitoring the situation and reviewing options for the mine.”
… Endako was expected to produce between 15 million and 17 million lb of moly this year at cash costs ranging between US$10.50 and US$12 per lb.
Read the complete article at NorthernMiner.com/news/thompson-creek