LAST UPDATE | 14 Jun 2023
THE GENERAL MANAGER of Tara Mines, which has temporarily laid off 650 workers, has said he cannot say for certain how long the loss of work will last.
General Manager Gunnar Nyström told RTÉ Radio One’s Morning Ireland that the decision to lay off workers was due to the business facing “unsustainable losses”.
He attributed the losses to changes in the price of zinc and electricity coupled with inflation and operational issues.
The mine is to be placed “under care and maintenance” within the next four weeks.
A small number of employees will continue to work at the mine during this period in order to care for and maintain it.
The mine’s parent company, Sweden-based Boliden, confirmed yesterday that production and exploration at the mine, which is the largest zinc mine in Europe, would cease temporarily.
“The zinc market seems to be very volatile at the moment. We’re seeing price dropping. I can’t really say why that is and I can’t really foresee what’s going to be in in the future,” Nyström said on Morning Ireland.
On whether any other mines under the Boliden company would be affected, he said that “the decision that was made last night is purely Tara Mines alone”.
“That’s where we’re facing tremendous, unsustainable losses. To safeguard the future of Tara Mines, this is a necessity to stem the cash going out.”
He insisted that the decision is “temporary” but added that “the timeline on how temporary it is, I can’t say at the moment”.
“We’re going to keep monitoring the situation and continue to engage with everyone, the stakeholders, employees, suppliers, and keep everyone informed on what’s going on here on site going forward.”
Also speaking on Morning Ireland, Minister for Enterprise Simon Coveney described the situation as a “short-term crisis”.
“The company is adamant that the board of directors are 100% convinced that this is a forced temporary closure and won’t be a permanent closure, but of course, we have to work to make sure that that’s the case,” Coveney said.
“This is very, very unwelcome news, and it really came unexpectedly. I think it was very unexpected, even within the company for many people working in Tara Mines and so many others who are reliant on Tara Mines for their income and their employment,” he said.
“It’s not just the 650 people, there’s about 2,000 people in and around the Navan area that are linked to Tara Mines in one way or another. This is a big deal and I’m doing everything I can to make sure we’re as supportive as we can be.”
The minister said that he has sought more details from the company about how long the lay-offs may last.
“To be honest, I think the company simply doesn’t know for now. What they do know is that it’s going to take about a month or so to go through all of the procedures to shut down operations in the mine and to put it under care and maintenance.”
Minister for Social Protection Heather Humphreys told The Journal yesterday that her department will be on standby to assist those affected by the temporary lay-offs.
“A dedicated team is being put in place and will be out on the ground with the company to provides information on income, redundancy entitlements and employment supports for their impacted employees,” said Humphreys.
Taoiseach Leo Varadkar said in the Dáil today that the government’s schemes for re-training, education, job searches and income supports will “click in” for those impacted by the temporarily lay-offs.
Varadkar added that the government is “keen to make sure this is a temporary closure and that the mine can be reopened and that staff can return to their jobs as soon is possible”.
Meath Fine Gael TD Damien English told Claire Byrne this morning that around 3,000 jobs to the local economy will be impacted, stating that it was “devastating” for the area.
English said he believes the closure will be temporary and he has “no doubt” there is a very strong future for Tara Mines.
He said the cost of doing business in a “vital issue” for the owners, but said he believed the price of zinc falling by over 30% was a major factor.
Last night’s news was a “complete shock” to himself and others, stating that any planned meetings scheduled for next week with Government officials and local representatives was about the long-term viability of the mine and not the immediate closure.
However, Sinn Féin leader Mary Lou McDonald said during Leaders’ Questions in the Dáil today that Minister Eamon Ryan was alerted about the dispute between the union and management “over a month ago”.
McDonald said: “Minister Simon Conveney said in a radio interview this morning that this news is ‘coming out of the blue’, but is that really the case Taoiseach?”
McDonald added that “everyone paying attention knew there was a very serious problem” and that Deputy Johnny Guirke had written to the Environment, Climate and Communications Minister in May, notifying him of the dispute.
According to the Sinn Féin leader, Guirke wrote: “If this risk becomes a reality, it would be a major blow to this region and certainly merits government intervention as soon as possible.”
The leader of the opposition said Deputy Guirke had his letter acknowledged and was told the matter would be brought to the Minister’s attention “and then nothing further”.
“[...]at that stage, six weeks ago, conversations were ongoing between union and management and concerns were very very high,” McDonald added.
An Taoiseach said the government has been engaging with Tara Mines for “several months” about the increase in energy costs.
“What has changed and what is significant in recent weeks, is a very significant fall in the price and value of zinc.”
Varadkar said: “I understand the company made a decision at an international level to close the mine on a temporary basis. Neither energy costs nor zinc prices are something that are under control of the company, or the government, but there has been ongoing engagement with the company and we want help.”
The Taoiseach said that the supports the government have introduced can’t always solve the issue, adding it’s not “simple”.
“The price of zinc has gone down in international markets, and when the product you produce falls in value, you have to do the maths. The company, it appears here, has done the maths and has decided to close the mine temporarily.”
McDonald replied that she was “at a loss” as to why government Ministers and an Taoiseach were “feigning surprise” due to the “range of engagements” the government apparently had with Tara Mines.
The Sinn Féin leader said it was “very clear” to the government that the mine was under “very significant pressure” and added that media reports highlighted that the mine had raised the alarm of the pressure earlier in the year.
The Taoiseach said it was “disappointing” that McDonald was attempting to “exploit” the “really bad news” of the job losses and affirmed that temporary job losses did come as a surprise to the government.
Additional reporting by Muiris O’Cearbhaill
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