Tara Mines reaches agreement with unions which could see operations resume

The agreement will 'result in changes to the operation of Tara'

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

Staff at Tara Mines in Co. Meath, which has been shut down since June last year, are to be balloted on a set of proposals between the mine’s operators and unions which could see work resume.

After operations at the mine ceased last year, 650 people were left out of work with just essential maintenance being carried out in the meantime.

The mine’s owner, Swedish mining company Boliden, has been in negotiations around re-opening the mine for months but overnight an agreement was reached at the Workplace Relations Commission.

A letter, seen by the Irish Examiner, sent to employees at Tara Mines said Boliden has reached an agreement on a set of proposals with the group of unions which, if accepted, would enable the mine to re-open.

While the full details of the agreement were not revealed in the letter, it did say it will “result in changes to the operation of Tara”.

“Upon acceptance, It will take some time for the operation to resume in full, but our intention is to commence the re-opening process immediately on acceptance of the deal. We will then bring employees back to work on a phased basis,” the company said to staff.

The company added that it believes that the agreed proposals are the best possible considering the “continuing external market challenge”.

“It will allow the mine to re-open on a basis that is financially sustainable, safeguarding the long-term future of the operation here,” the letter said.

Under the agreement, the proposed voluntary severance scheme will be enhanced for those who still wish to take this option.

Tara Mines had been struggling to keep itself afloat prior to its closure over the summer last year. The mine lost over €67m during 2023 but directors believe losses could have been “significantly higher” if operations continued.

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.

Among the reasons for the mine’s financial difficulties include the fall in zinc and lead prices along with higher energy costs and inflation.