Trevali suspends Caribou zinc mine operations

Base metals miner Trevali suspended operations at its zinc and lead Caribou mine in New Brunswick, saying it is not economically feasible in the current market.

The decision to preserve the mine's mineral assets was made based on declining zinc prices, high concentrate treatment charges and uncertainty due to the coronavirus pandemic, Trevali said today.

Trevali also pulled its 2020 guidance to better gauge the impact of the closure and the coronavirus pandemic on its production.

London Metal Exchange three-month zinc futures settled today at $1,848/t, a 25pc decrease since its 2020 peak on 22 January, as prices slide amid the coronavirus pandemic.

In 2019, the Canadian mine produced 75mn lbs of zinc and 27mn lbs of lead.

Trevali had previously announced that it was considering placing the mine on care and maintenance in May, when a fixed-price agreement for the bulk of the mine's production ends.

By Andrew Saucer