Mining Magazine > Panorama > Xstrata closes Kidd Metallurgical plant

Panorama

Xstrata Copper Canada has announced that it will permanently cease operation of its copper and zinc metallurgical plants at the Kidd Metallurgical Site in Timmins, Ontario on May 1, 2010. The Kidd mine and concentrator will remain in operation.

Claude Ferron, COO for Xstrata Copper Canada, commented: “Global smelting overcapacity is driving treatment and refining charges to record lows while the costs to operate and maintain these facilities continue to increase. Our situation in Canada is exacerbated by a strengthening Canadian dollar. The requirement for further capital investment in these plants and lower sale prices for some by-products including sulphuric acid have also negatively impacted the viability of these operations.  

“We have investigated options to improve the situation and after careful consideration have made this difficult decision to permanently shut down the Kidd zinc and copper plant”.

Xstrata expects that approximately 670 employees will be impacted as a result of this decision. The company will remain a major employer in Timmins, focusing its efforts and investments on the Kidd Mine and the concentrator. In excess of C$100 million is being invested at Kidd Mine to extend its mine workings down to the 3,000m level, extending the life of the current mine to 2017.  

Xstrata’s Copper Canada division will focus on integrating the remaining Kidd assets with the smelting and refining assets of the Horne smelter and CCR refinery, in order to improve the overall financial competitiveness of the division.  

Claude Ferron commented: “After this rationalisation we will remain an important integrated copper business in Canada operating in Ontario and Quebec, and will be working closely with our people, our communities, governments and other stakeholders to enhance the sustainability of these businesses for the benefit of all stakeholders”.