Thompson Creek mine near Challis to eliminate 100 jobs

The Thompson Creek Mine, which produces molybdenum in north-central Idaho, cut its workforce Oct. 3 by about 100 people. The layoffs are effective Oct. 5.

The mining company, based in Denver and in Vancouver, B.C., expects to save about $100 million in operating costs and $8 million to $9 million in capital expenditures through the cutbacks announced Oct. 3.

Thompson Creek will suspend stripping activity associated with the next phase of production at its open pit mine in Idaho. Mining will continue as planned through 2014 in the phase that’s under way now, Thompson Creek officials said.

“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, the chairman and CEO of the company, in prepared remarks Oct. 3. “This will allow for greater certainty in accessing our existing financings in order to complete the development of Mount Milligan, while we preserve the assets at Thompson Creek until market conditions strengthen.”

Mount Milligan is a copper-gold mine in British Columbia that Thompson Creek is constructing. The mine should be operational in 2013, according to the company.

Many of the people who work at the molybdenum mine live in Challis, or along the Salmon River corridor between Challis and Stanley. The mine is located in Custer County, and with about 375 employees before the layoffs is one of the county’s largest employers. It’s also the highest-paying employer in the county, according to the Idaho Department of Labor. Custer County had a 2011 population of 4,333 and an unemployment rate of about 7.5 percent, according to the Idaho Department of Labor.

The company won’t know the exact number of jobs being lost until Oct. 5, said Pamela Solly director of investor relations for Thompson Creek Metals Co.

“We have notified 105 employees that their current positions are being eliminated, but we have also asked if there are any volunteers for early retirement,” she said.

Terminated employees will receive severance packages, but the company isn’t offering any other employment services, she said.