Imperial Metals Corporation announced Jan. 6, 2015, that pit operations at the Huckleberry Mine were suspended, affecting approximately 100 of its 260 employees.
The open pit copper mine, located 88 km from Houston, will retain the balance of its work force to continue milling stockpiled ore.
According to Randall Thompson, Chief Operating Officer at Huckleberry Mine, the company has been facing higher operating costs and a drop in copper prices.
Copper prices have been falling for the last few years. In fact, on Nov. 23, 2015, copper traded below the $2 U.S. level on Canadian markets, a low not seen since 2009.
Giovanni Gallipoli, Associate Professor at the University of British Columbia, explained that copper prices have been falling due to a general slowdown in aggregate demand around the world, and notably in China.
“This is the status quo for the company as we move forward,” said Thompson in Decemeber. “What we’re doing is trying to find a way to survive in this environment through cost management measures and ensuring safe operations.”
“Huckleberry will continue to work with employees and other stakeholders to manage through this difficult period,” says a company’s press release.
