Tara Mines' loss of €67m in 2023 could have been 'significantly higher' had operations not ceased 

Mine closed temporarily last summer and directors working with unions to resume operations on a 'sustainable basis'

Tara Mines temporarily closed during the summer last year leaving about 650 staff out of work. 

Meath-based Tara Mines, which has been temporarily closed since the middle of last year, lost over €67m during 2023, but directors believe losses could have been “significantly higher” if operations continued.

Operations in Tara Mines temporarily ceased during the summer, with just essential maintenance being carried out ever since. This left about 650 people out of work.

The directors of the company said they believed the closure to be temporary and it was working on a plan with unions to resume operations on a “sustainable basis”.

According to the company’s 2023 financial results, it generated revenue of €98m, down from €253m in 2022 — a drop of 61%. The company incurred a pre-tax loss of €67.5m in 2023 compared to a pre-tax profit of €24.4m in 2022.

The company, which is owned by Swedish mining company Boliden, said the average price of zinc last year stood at $2,648 (€2,449) per tonne, which is 24% lower compared to 2022. The average price for lead for the financial year 2023 was US$2,136 (€1,975) per tonne, 1% lower than the average in 2022.

As a result of the closure, the mine extracted and milled 1.09 million tonnes of ore in 2023 — a 48% reduction compared to 2022.

According to the company, the decision was made to “safeguard” the long-term future of the group and in “response to significant and unsustainable financial losses that the business experienced during the first half of the financial year”.

“The directors believe that based on the forecast outlook, notwithstanding the cost of care and maintenance, the financial losses would have been significantly higher for the full year 2023 had the operation continued to run,” the company said.

Among the factors which led to the closure of the mine include a decline in the price of zinc, higher energy costs, and general inflation as well as internal operational challenges.

In addition, while the company operates in euros, its product is sold in US dollars, which means it also impacted by exchange rates between the two.