Flin Flon's only mine slated to close by 2021, future of 800 jobs uncertain

A mining operation in Flin Flon that employs 800 people willleave the community in three years.

Theclosure of Hudbay's 777 mine the only mine in the northern Manitoba city has long beenforecasted, but employees learned this week through an internal letter that the company's attempts to find a replacement for the mine havefallen short.

The mining city's largest employer will also close itsmill in FlinFlon, 630 kilometres northwest of Winnipeg,and will"most likely" cease operations at its zincplant by2021.

The closures will inevitably result in job losses, though the company expects to transfer some positions to nearby mine and mill operations in Snow Lake, Man.

'We have to be honest'

"We have to be honest: after mining for 90 years in the Flin Flon area, we now know that we won't have an anchor mine to replace 777 and sustain operations in Flin Flon the same way they are today," said the internal letter, which the company suppliedto CBC News on Wednesday.

"Despite a lot of work over the past few years, the most likely scenario is that mining operations will cease in Flin Flonin 2021. As a result, the Flin Flonmill will also cease operations," said the memo to employees, which also indicated the zinc plant is likely to close that year.

"Our efforts to find new sources of ore from 777 did not turn out as we hoped."

Robert Assabgui, vice-president of Hudbay'sManitoba business unit,wrote the facility would likely only haveore from its Lalormine, more than 200 kilometres east of FlinFlon, at its disposal. That mine will be able to produce only halfthe feed of zinc used at its plant currently.

"It is unlikely we will be able to technically or commercially operate the plant at this reduced throughput," he said.

Assabguiwrote it was too soon to say how many employeeswill be out of work.

"The truth is we are working to figure it out, but we don't have all of the information we need right now."

The Hudbayexecutive said the company expects to transfer employees tothe Stall mill,Lalormine and a refurbishedNew Brit Gold mill, near Snow Lake.

"We anticipate offering training to help people transition to future roles, but we also expect that job loss will be part of the outcome," he wrote.

We don't have any firm basis to believe exploration will yield a timely solution at this point and we don't want to give anyone false hope- Memo to Hudbayemployees

Scott Brubacher, a company spokesperson, said more than 300 people are eligible for retirement in the next several years.

To prepare for thetransition out of Flin Flon, the company previously unveiled a three-pillar plan to mitigate the loss to employees and neighbouring communities.

The plan initially focused on ramping up production at the Lalormine and Stall mill, which has happened. But the third pillar maintaining operation of the zinc plant no longer seemsfeasible, the memo concluded.

Lifeline for zinc plant

The lifespan of the plant may be extended, however, because of thediscovery of the Pen deposit, which is located seven kilometres from the Lalormine, but the supply is marginal and would only provide a short-term solution, the Hudbay memo said.

The companyasserts it is not giving upon northern Manitoba.

Hudbay spent $19 million onexploration this year and will continue to invest in finding untapped resources.

"But we don't have any firm basis to believe exploration will yield a timely solution at this point and we don't want to give anyone false hope,"Assabguisaid.

Hundreds of jobs are likely at risk ifHudbaypulls up its stakes inFlinFlon.

The news of the impending closure prompted fiery discussion Wednesday at the Manitoba Legislature.

NDPLeader Wab Kinewaccused the Progressive Conservative governmentof refusing to save jobs.

He likened the government's apathy to what he characterized as inaction on the part ofthe Ontario and federal governments to General Motors' surprise decision earlier this weekto shutter its Oshawa, Ont., plant and lay off 2,500 people.

After question period, Blaine Pedersen, minister of growth, enterprise and trade, told reporters all hope is not lost.

He'soptimistic the company's mining exploration will pay dividends, and thatramping up operations in Snow Lake will bring more mining jobs.

He said there will also be openings after older employees retire.

"Itis by no means the end of the life of Flin Flon," Pedersen said."Imet with the community, the mayor and council, at the Association of Manitoba Municipalities [convention]they're excited about other pursuits."

He said emergencyassistance from the government is not required at this stage.

'Business as usual'

"The mine continues to work, so immediate assistance?No,'" he said.

"It's business as usual from now till2021, and we'll continue to dialogue with the community as they get closer to there," the minister said.

If this mining operation shuts down andif these jobs leave, there's not going to be a whole lot of the community left.- NDPLeader Wab Kinew

"Perhaps HudBaywill have more prospects, mine potential, by then."

Liberal Leader DougaldLamont said the current government, and the previous NDPgovernment,should have discovered more minerals years ago, and now they're scrambling.

"Even if you were to find something, a good strike, tomorrow it would take years for all the licensing to actually make it happen and get it up and running."

Kinew argues the government must do everything in its power to save good jobs.

"The governmentappears only interested in, 'Ah,we got twoyears, what's the big worry here?'Well, the worry is that if this mining operation shuts down andif these jobs leave, there's not going to be a whole lot of the community left."

A request for comment from Flin FlonMayor Cal Huntley was notreturned by deadline on Wednesday.