Europe's Largest Zinc Mine Reopening This Summer

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe's largest zinc mine in Ireland could be up and running again from June following an agreement between unions and management over a plan for the future.

Operations at Tara Mines in Navan, County Meath, Ireland, were brought to a halt last June when Swedish owner Boliden (Stockholm, Sweden) stopped all exploration and production at the mine, citing a combination of factors, including low zinc prices and high energy costs. It meant that 650 workers were "temporarily" laid off. However, after months of intense negotiations, unions and management have come to an agreement on a rescue package that could see workers return and the mine restarting production on a phased basis from June. Workers will now vote on accepting the new deal, which will see up to 160 voluntary redundancies. An original package in January that would have led to 200 job cuts and pay freezes was rejected. For additional information, see January 30, 2024, article - Rescue Plan Rejected at Europe's Largest Zinc Mine.

A letter to employees read: "We believe that the proposals that have been agreed are the best possible in light of the continuing external market challenges. It will allow the mine to re-open on a basis that is financially sustainable, safeguarding the long-term future of the operation here. 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 mine, which produced 198,000 tonnes of zinc concentrates in 2022, is the largest in Europe. However, low global zinc prices and the high cost of running Tara Mines were blamed for the shutdown last June. It has been costing Boliden about 1 million euro (US$1.06 million) a week to maintain the mine while negotiations have been ongoing. Industrial Info is tracking a key project at Tara to expand the operation with the construction of a new, 2-kilometer drift tunnel to mine from a new mineralization with an inferred mineral resource of 10 million metric tonnes. The so-called Tara Deep project could yield new seams that would potentially extend the life of the mine by decades.

Boliden's operations have also been impacted by extended political strikes in Finland over recent months, which the company claimed would result in a first-quarter financial hit of almost 44 million euro (US$47 million). "A number of trade unions in Finland have carried out political strikes during the quarter, which have affected Boliden's access to critical infrastructure such as railway and harbors," the company stated.

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