Commodity prices force more efficient operations

The Robinson Nevada Mining Company, owned and operated by KGHM International Ltd.,  has announced that the Robinson Mine will lay off 36 positions as part of a restructuring the mine’s operation to ensure both short and long term viability. Robinson currently employs about 631 employees. Production at the operation will not be impacted.

Steve Holmes, Chief Operating Officer of KGHMI explained that, “In order to ensure effective and sustainable operations, we continuously review and revise our strategy in order to remain cost-effective and optimize KGHMI’s operations.  After examining a number of options for the Robinson Mine, it became apparent that we must modify the operation. This decision, while difficult, is necessary given the economic climate.  Additional productivity improvements and cost reductions are ongoing, and we will continue to review Robinson, and the performance of all of KGHMI’s operation’s, as we position ourselves for success.”  Robby Ruesch, acting General Manager at Robinson stated. “As active members of this community, we will continue to support and contribute to local community projects where prudent. We want to take this opportunity to acknowledge the tremendous contribution made by all of our employees, and will continue our work towards operating safely and efficiently.”

Robinson Mine Human Resources Manager Kim Kammerer said that the reductions were the result of the declining prices in commodities, an element of the volatile mining industry that can’t be controlled, only adapted to. According to copper prices reached a record low in August of this year, hitting $2.24 per pound, down over a dollar per pound from where is was just one year ago. Gold prices have also dropped several hundred dollars per ounce from where they were this time last year.

Furthermore, additional cuts will be made to the way the day to day operations will be handled in order to increase efficiency and cost-effectiveness, though specifics are not being released to the public at this point.

The layoffs announcement comes just a little over two months after Midway Gold filed for bankruptcy and laid off a portion of the staff at the Pan Mine project. Some restaffing has already occurred as production started again recently at the Pan Mine project.  mine layoffs1