A major blow to the mining industry in Timmins.

In a statement to local media Tuesday morning, Porcupine Gold Mines has announced they will “permanently cease” operations at the Dome underground mine at the end of this year.

General Manager Marc Lauzier says they made an announcement last year, but kept going for another 18 months.

“Our (productivity is) actually okay,” he told Rogers Media, “Our safety’s pretty good, but when we look at the remaining reserves, and we look at the aging infrastructure, it just doesn’t make sense any more from an economics point of view” to go any further.

Lauzier says about 140 workers will be affected, including employees and contractors.

“It’s about 12 per cent of our workforce,” he says, adding workers are being informed of the decision this morning.

Lauzier says this will now give affected workers the chance to look at options beyond 2017.

And the company is providing help too, in the form of outplacement services and looking at other roles within the company.

“It’s been a good go and we remain committed to being strong in the community,” Lauzier adds, “It’s a business decision, it’s a tough decision but it’s a decision that allows us to optimize the assets that Porcupine Gold Mines and Goldcorp have in the Timmins camp.”

Assets such as the other Goldcorp operations in the area, like Hoyle Pond, the Hollinger open pit, the Borden project near Chapleau and eventually the Century project.

The Century project is a potential large-scale open pit mine and related processing facility at the Dome location.

“If we don’t make these decisions, then we’re just not as economically viable as we should be,” Lauzier says, “It’s about being stronger in the community, it’s not necessarily about removing ourselves or making our footprint any smaller.”

“We’ve got to be smart in order to secure those investments.”

Timmins Mayor Steve Black says while it’s disappointing any time an employer shuts down, this one wasn’t much of a shock.

“It’s something that we’ve anticipated would be coming,” he said, noting he’s hopeful the affected workers are able to find local work in the near future.

He adds the city’s focus with Goldcorp will be to get the Dome Century up and running in the coming years.

“That is a monumental sized project, and definitely would help the economy at the same time, while this closing of the current Dome underground operations has a negative impact.”

Black also mentioned the Borden project, noting that will have a positive economic impact on our region too.

FULL STATEMENT FROM PORCUPINE GOLD MINES

Porcupine Gold Mines announced today that mining operations will permanently cease at the Dome underground mine effective December 31st, 2017. The life of the Dome Underground mine had been extended by eighteen months since the original announcement of closure in January 2016, however, the decision to cease operations permanently was taken in response to economic conditions and operational challenges associated with aging infrastructure.

Mining operations at Porcupine’s Hollinger open pit, Hoyle Pond underground mine and processing plant will continue for the foreseeable future.

The permanent closure of Dome underground operations will directly affect approximately 140 people – or about 12% of the PGM workforce – including employees and contractors.

“This was a difficult decision, but one that is in the best interest of the long-term sustainability of the Porcupine Gold Mines complex,” said Marc Lauzier, Mine General Manager at Goldcorp’s Porcupine Gold Mines. “We are investing in the future, with projects such as extension of the Hoyle Pond Mine, construction of the Borden Mine and completion of studies for Project Century. Investing in new development means we can deploy the latest technologies, decrease overall operating costs, sustain safe operations and continue to be a significant employer and partner in our community.”

Goldcorp is committed to closing the Dome underground site safely, responsibly and in accordance with closure obligations, as well as the collective agreement with the United Steelworkers Union.

Workforce safety will remain the highest priority throughout this transition. If safe production cannot be sustained until the end of the year, the closure date will be brought forward.

Goldcorp is providing outplacement services to affected employees during this transition. Some displaced Dome employees may qualify to find employment at other parts of the company.

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