{"id":1174145,"date":"2020-03-26T11:03:34","date_gmt":"2020-03-26T17:03:34","guid":{"rendered":"https:\/\/www.mining.com\/?p=1018282"},"modified":"2020-03-26T11:03:34","modified_gmt":"2020-03-26T17:03:34","slug":"trevali-halts-canadian-zinc-mine-amid-covid-19-outbreak","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1174145","title":{"rendered":"Trevali halts Canadian zinc mine amid covid-19 outbreak"},"content":{"rendered":"<p>Trevali Mining (TSX:TV) has <a href=\"https:\/\/www.trevali.com\/news\/news\/news-release-details\/2020\/Trevali-Announces-Temporary-Suspension-of-Caribou-Mine-Operations-\/default.aspx\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">stopped production at its Caribou zinc-lead-silver mine<\/a> in Canada\u2019s New Brunswick province as challenges presented by the spread of covid-19 have added to woes posed by weak conditions in the zinc market.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>\u201cThis decision is no reflection on the quality of our team or the operating conditions in New Brunswick, and while the operation is paused, we will study a multitude of options in the Bathurst region to maximize value and reduce the overall cost structure of Caribou,\u201d\u00a0president and chief executive, Ricus Grimbeek, said.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Challenges presented by the spread of covid-19 have added to woes posed by weak conditions in the zinc market, said Trivali.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Trevali expects to incur one-time costs of&nbsp;$5 million over<br \/>\nthe next two months related to moving the mine into care and maintenance mode,<br \/>\nwith costs after that of about $500,000&nbsp;a month.<\/p>\n<p>Zinc\u2019s primary market is for strengthening steel. In 2016,<br \/>\ncommodities analysts began warning of a looming zinc shortage and soaring<br \/>\nprices. In 2018, it hit $1.60 per pound, but it has since dropped to about $1<br \/>\nper pound.<\/p>\n<p>The slump in prices, combined with high concentrate<br \/>\ntreatment charges, has made mine operations&nbsp;at Caribou uneconomic at this<br \/>\ntime, said Trivali.<\/p>\n<p>The Vancouver-based miner will provide \u201ctransition<br \/>\nassistance\u201d to its workforce of about 370 in addition to severance, though no<br \/>\nspecifics were provided.&nbsp;<\/p>\n<p>Long-term zinc demand is expected to recover soon as renewable<br \/>\nenergy, electric vehicles and a global decarbonization and electrification move<br \/>\nshould drive demand for industrial metals up.<\/p>\n<p>Trivali has doubled in size since acquiring two zinc mines<br \/>\nfrom Glencore (LON: GLEN) in 2017, bumping it to mid-tier miner status, with a<br \/>\nglobal head count of about 2,000.<\/p>\n<p>Besides Caribou, the company has three other zinc mines \u2014<br \/>\nSantander in Peru, Rosh Pinah in Namibia and Perkoa in Burkina Faso.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Caribou mine, in New Brunswick, has been in continuous production since 2015.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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