BREAKING: 650 workers at Tara Mines temporarily laid off as cash strapped firm enters 'care and maintenance'

There are fears for 650 jobs at Tara Mines in Navan this evening after parent company Boliden placed the mine under 'care and maintenance' ceasing production and exploration at the mine.

In a statement issued this evening, Boliden said that "due to a combination of factors, the Tara mine in Ireland will be placed under care and maintenance. The decision means that production and exploration ceases temporarily at the mine.

"The Tara zinc mine in Ireland is a high-cost mine with approximately 650 employees.

"Boliden is working actively to extend the life of the mine in parallel with ensuring its competitiveness.

"The business is currently cash flow negative, due to a combination of factors including operational challenges, a decline in the price of zinc, high energy prices and general cost inflation.

"Tara will therefore be placed under care and maintenance until further notice.

The decision means that production at the mine ceases and that the workforce is temporarily laid off until conditions of the operation improve.

In a letter to staff, General Manager Gunnar Nystrom said:

Dear colleagues,

We are writing to let you know that the board of Boliden Tara Mines met earlier this evening and has made a decision to temporarily suspend operations at Navan.

This means that the mine will enter a ‘care and maintenance’ period within the next four weeks.

This decision has been taken to safeguard the long-term future of the operation at Navan, in response to significant and unsustainable losses that the business here is currently experiencing. The directors of Boliden Tara Mines believe that this situation is temporary.

Regrettably, it means that up to 650 Tara Mines employees will be temporarily laid off. For those impacted, a temporary lay-off means that you will continue to be an employee of Tara Mines, but your wages will cease during this period.

We are acutely aware of the difficulty and disruption that this decision will cause for our employees. We are also aware that it will come as a shock. We will remain in continuous dialogue with you and your representatives to keep you updated and informed about the situation.

The decision has been made this evening 13 June 2023. The management team will review further supports available to employees during the temporary layoff and will update employees accordingly.

We will also work with the local social welfare authorities and other relevant state agencies to assist employees in availing of the supports that are available to you.

The losses being experienced have been brought about by a combination of factors that have made this decision unavoidable. These factors include operational challenges, a decline in the price of zinc, high energy prices, and general cost inflation.

We did not foresee a combination of events like this coming, but we simply have to stem the unsustainable cash outflow that we are currently experiencing, in order to safeguard the long-term future of the mine.

We cannot be definitive about how long the period will last, but will keep you updated frequently.

We will be providing more detail about the decision at a briefing that will be held onsite in the marquee at 9pm. For those offsite, a meeting invite will be sent.

We are conscious that this meeting is being announced at short notice, and in the evening. Given that Boliden Group is a stock-market listed company, we are obliged to communicate the information immediately after the decision has been taken, and want to ensure employees are properly briefed as soon as possible. We are also sending you an employee questions and answers document.

After tonight’s meeting, we will continue to hold meetings with you and your representatives on a regular basis, in order to keep you consistently informed.

Sincerely,

Gunnar Nystrom

Commenting on the news, local Senator Shane Cassells said: "I have contacted the Tanaiste this evening and made him aware of the breaking situation and have tabled a special debate in the Seanad tomorrow morning at 10.30am to discuss this with the Minister and press him on the measures that government can take to assist.

"Not only does Tara Mines employ 650 people but it supports thousands of other jobs in the region.

"We must do everything we can to support the long term future of the mine and those employed there.

Local Sinn Féin TD Johnny Guirke described the news as "very disappointing and worrying".

He said that Government needed to step in as soon as possible to try to make sure that these jobs are saved.

Aontú TD Peadar Toíbín said this evening's announcement was "shocking news" and that it would have a big impact on the people of Navan and Co Meath.

He said that Tara Mines was the "backbone" of the area and he called on the Minister for Enterprise to meet with workers and management as soon as possible.