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Hudbay mining operations in Flin Flon ‘most likely’ shutting down in 2021

Premier responds to Opposition criticism by saying NDP tax policies would hurt, not help, the province's north
flin flon mine

Flin Flon’s biggest employer has announced plans to shut down operations in the community within three years on Nov. 26.

In a memo circulated to Hudbay staff, Rob Assabgui, vice president of Hudbay’s Manitoba Business Unit, said that there wouldn’t be another mine to replace the 777 mine and sustain operations in Flin Flon.

“Despite a lot of work over the past few years, the most likely scenario is that mining operations will cease in Flin Flon in 2021,” Assabgui wrote. “As a result, the Flin Flon mill will also cease operations.”

Assabgui states that efforts to extend the lifespan of 777 have seen some success, pushing the mine’s lifespan from 2019 to 2021, but are unlikely to postpone the inevitable any further.

The Flin Flon zinc plant, which was designed for a throughput of around 200,000 tonnes of concentrate each year, is also likely to be shut down. By 2022, ore from Lalor mine near Snow Lake would be the only supply for the Flin Flon zinc plant, cutting the plant’s feed in half.

“The most likely outcome is that the zinc plant will also close in 2021,” writes Assabgui. “The sensible thing to do at this point is plan ahead under the scenario with the most probable outcome, which at this stage is not having sufficient feed for the Zinc plant post 777 mine closure.”

A January 2017 story by the Flin Flon Reminder stated job losses would begin either in 2019 or 2020, with between 500 and 900 jobs being either reduced or moved elsewhere, including 200 layoffs.

In the Nov. 26 memo, Assabgui said the company would shift employment to facilities around Snow Lake, including the Stall mill, Lalor mine and a refurbished New Britannia Gold mill.

“We anticipate offering training to help people transition to future roles, but we also expect that job loss will be part of the outcome,” said Assabgui. “Even though we do not have all answers at this moment, the respectful thing to do is to start the planning process for an orderly transition to a smaller mine and mill operation based in Snow Lake.”

The Manitoba NDP demanded in a nov. 28 press release that the provincial government fight to protect the jobs that will most likely be lost once Flin Flon’s mining operations close in 2021.

“Across Canada we are seeing Conservative and Liberal leaders lie down and accept thousands of manufacturing job losses,” said Manitoba NDP leader Wab Kinew. “So far the [Premier Brian] Pallister government has followed suit, and has refused to say when they knew these closures were coming. In Flin Flon, families need a government that actually fights for their jobs and uses every tool in their toolkit to keep that mine operating.”
The premier responded in the Manitoba legislature by saying that the NDP had squandered money from the Mining Community Reserve fund while they were in government and that support for higher taxes wouldn’t help Flin Flon.

“The member has the chance to stand up for the people of Flin Flon by, for example, admitting the NDP spent all the money out of the mining reserve but not on helping communities that have mines,” Pallister said. “Maybe… he’d like to admit that his plan to tax doctors so they leave the province isn’t going to help us get obstetric services in Flin Flon and maybe he’d like to admit, because the members of his caucus who are from the north certainly know, that his position on the carbon tax will make life desperately harder for people in Flin Flon. The people of Flin Flon need representation. They need someone to stand up for them and they’ll get it in the next election.”

“This closure will mean devastation for Flin Flon families and economic turmoil for our community, yet the premier is silent,” said Flin Flon NDP MLA Tom Lindsey. “The north needs a jobs strategy that focuses on building a strong northern economy and good, reliable jobs for families. The Manitoba NDP will continue to stand up for working families.”

- with files from Eric Westhaver, Flin Flon Reminder
 

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