HudBay Announces Closure of Balmat Zinc Mine

Tag : zinc
HudBay Minerals Inc. recently announced it plans to close itsBalmat, New York zinc mine and concentrator.

As a result of lower prices for zinc metal, continued highoperating costs associated with the geology of the Balmat mine andgeneral inflationary pressures, HudBay has determined that itsBalmat operation is not economically viable given current marketconditions. The Balmat mine was reopened in 2005 based on afeasibility plan that assumed lower costs and higher levels ofproduction than were achieved to date.

"HudBay would like to recognize the hard work andcontributions of this team over these past three years and thankthem for their service and dedication," said Brad Lantz,Vice-President Mining, HudBay. "We also extend our sincereappreciation to the entire Balmat community."

The announcement will affect approximately 200 workers employed atthe Balmat mine and concentrator. Operations are expected to ceaseon August 22, 2008. A small group of employees will be retained tokeep the facility on care and maintenance. HudBay will continue totest geophysical anomalies within its exploration territories inthe region as part of its overall 2008 exploration programannounced earlier in the year. HudBay indicated that affectedemployees will receive transition support and the Company will workwith employees closely during this difficult time.

The Company does not expect to incur significant costs associatedwith closure. HudBay's total zinc production for 2008, includingBalmat's contribution through the first eight months of the year,is now expected to be at the lower end of the Company's previouslydisclosed production guidance range of 120,000 to 150,000 tonnes ofzinc.

Zinc production includes Balmat payable metal in concentrateshipped.

HudBay Minerals Inc. is a leading Canadian base metals miningcompany with a focus on the discovery and production of zinc andcopper metal. The Company is investing for the future in one of themost ambitious exploration programs in Canada, targeting its400,000 hectare exploration territory in the Flin Flon GreenstoneBelt. As an integrated mining company, HudBay operates mines,concentrators and metal production facilities in northern Manitobaand Saskatchewan, a zinc oxide production facility in Ontario andthe White Pine copper refinery in Michigan

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