Coveney: News of temporary layoffs at Tara Mines 'is a shock'

Tara Mines in Navan, Co Meath will temporarily cease production and exploration. Picture: Boliden

The parent company of Tara Mines has said "a combination of factors" has forced the decision to temporarily lay off Irish workers.

Tara Mines in Navan, Co Meath, owned by Boliden, employs around 650 people.

Simon Coveney has said that supports are immediately being put in place to assist the Tara Mines workers.

The Minister for Enterprise, Trade and Employment said his department had been speaking with Tara Mines in recent weeks and he was due to meet with senior Irish managers next week.

"Tonight’s decision of the board in Sweden is a shock and my thoughts are with all of the workers affected," Mr Coveney said.

The company has tonight told me the board is convinced this is a temporary closure."

Mr Coveney said state agencies would immediately be sent to assist workers, especially those apprentices who are in the middle of their training.

Enterprise Ireland has indicated it can have a team there on Wednesday.

“Meanwhile the government will continue to engage with Irish management and the parent company to try reverse this closure," Mr Coveney said.

SIPTU Divisional Organiser, Adrian Kane said workers at the mines are "shocked and disappointed" by both the news and the manner by which it was communicated to them.

Mr Kane said members are concerned that they were not informed in advance of Tuesday's announcement.

“Tara Mines is a critical part of both the local and national economy and we will be engaging with management to discuss how the effects of these lay-offs can be mitigated," he added.

The announcement, made at 9pm on Tuesday, said that the mine will be placed under care and maintenance and that production and exploration will temporarily cease within the next four weeks.

Minister for Enterprise, Trade and Employment Simon Coveney said state agencies would immediately be sent to assist workers, especially those apprentices who are in the middle of their training. Picture: Damien Storan /PA Wire

Boliden said it is actively working to extend the life of the "high-cost mine".

The statement continued: "The business is currently cash flow negative, due to a combination of factors including operational challenges, a decline in the price of zinc, high energy prices and general cost inflation.

"Tara will therefore be placed under care and maintenance until further notice."

The workforce at the mine has been told they will be laid off until conditions of the operation improve.

General Manager of Boliden Tara Mines, Gunnar Nyström said the company is acutely aware of the difficulty and disruption the move will cause for employees, their families and the wider community.

"This was not a decision we made lightly, but we simply have to stem the unsustainable cash outflow that we are currently experiencing, in order to safeguard the long-term future of the mine," said Mr Nyström.

We cannot be definitive about how long this period will last, but we believe that this situation is temporary and we will keep the situation under continuous review.

"We will remain in dialogue with our employees and stakeholders throughout this period.” A small number of people will continue to work on site during the layoff period in order to maintain the mine.

Management will be reviewing further supports available to employees during the layoff and will keep them up-to-date.

Boliden also said it will work with social welfare authorities and relevant state agencies to assist employees regarding available supports.

Tara is Europe's largest zinc mine and has been in operation since 1977. It was acquired by Boliden in 2004.

Around 2 million tonnes of ore are mined annually for the production of zinc and lead concentrates.