Scrap Monster
Vulcan
Vulcan
Lead November 14, 2019 03:30:43 PM

Glencore Declares Canadian Smelter Shutdown, 420 Jobs at Risk

Paul Ploumis
ScrapMonster Author
The company has arrived at the unavoidable conclusion that the smelter is not sustainable, after thoroughly assessing all possible options.
Glencore Declares Canadian Smelter Shutdown, 420 Jobs at Risk

SEATTLE (Scrap Monster): Glencore announced its decision to permanently close the Brunswick Lead Smelter in Belledune, N.B. The closure is likely to impact nearly 420 employees.

Announcing the decision, Chris Eskdale, Glencore’s Head, Zinc & Lead Assets noted that the company has arrived at the unavoidable conclusion that the smelter is not sustainable, after thoroughly assessing all possible options. Further, he assured that the company would provide pension, severance and outplacement support services to all affected employees, including possibility of jobs at Glencore’s other Canadian operations.

ALSO READ: BHP Escondida Remains the World's Largest Copper Mine

According to press release issued by Glencore, the closure is slated for end-2019. The smelter has been running in losses, since the closure of the nearby Brunswick Mine in 2013, which produced zinc and lead. The plant has lost an average of $30 million per year over the past three years. The Chinese smelters that came up during this period, have captured most of the available concentrates, thereby pushing the company’s smelter operations into deep trouble, said Alexis Segal, company spokesperson.

Earlier reports suggested that Glencore was planning to invest up to $64 million in building an acid plant at the smelter facility. In fact, it had even completed the first phase of the project by spending approximately $20 million. However, it later cancelled the project on safety concerns and ongoing contract dispute with unionized workers.