Work stops at Redstone mine project

Posted By BRANDON WALKER, THE DAILY PRESS

Posted 3 hours ago

The Timmins Chamber of Commerce president says the suspension of operations at the Redstone Mine is no reason for those in the local mining sector to panic.

But Rob Galloway believes many of the smaller mining companies may have to reexamine at some projects due to a poor metals market.

Liberty Mines Inc. is looking for financing alternatives and curtailing development at its Redstone nickel mine southeast of Timmins.

Galloway said the price of metals will have an impact as it falls.

"Hopefully, it's just a temporary stall until things go back up," he said. "I think as the economy picks up, the demand for base metals in industrial practices over in China and here will go up.

"Sometimes when the economy is not doing very well gold still stays up, but that doesn't appear to be the case right now."

Galloway said the ceasing of development isn't signalling a bust in the mining industry.

"I hope not anyway," he said. "I know everyone's talking about that, 'how low and how long (prices) might stay there.' I don't think anyone knows, it's definitely a time everyone will be watching closely."

The Canadian Press reports Liberty will "respond to poor nickel market conditions (by focusing) on areas underground which can be mined quickly and processed at the Redstone Mill."

All development work has been curtailed underground and an undisclosed number of employees and contractors "have been affected by this move which management views as necessary to maximize cash flow at this time."

More operational changes may be needed to reflect the nickel market and the corporation's cash flow position.

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