Tara Mines ‘will have to close’ permanently if it can’t reopen profitably, warns owner’s CEO

But he insisted there is no “formal” timeline for when that decision would have to be made on the giant zinc mine outside Navan in Co Meath.

The troubled Tara Mines operation – which was one of the biggest operational zinc mines in the world – has been under care and maintenance since last year. Operations were suspended as the mine became unprofitable amid a fall in global zinc prices and elevated energy costs. Preliminary results show that Tara Mines made a €65m loss in 2023.

It is costing Boliden €1m a week to keep the mine in stasis while negotiations with unions continue with a hope to restarting activity at the site.

Mr Staffas was asked at a results briefing in Sweden on Thursday if the group has a deadline for closing the mine if it can’t be reopened on a profitable basis.

“Not formally,” he said. “Of course, at some stage if we don’t think we can get anywhere so we can get it profitable we have to close it, but what [the] exact timing is around that is relatively open.”

Last month, Tara Mines unveiled a rescue plan to staff that will involve slashing about a third of the 600 jobs at the site and a huge initial reduction in the amount of ore the mine extracts every year.

The mine’s management have warned that “difficult decisions” must be made to secure its future.

Trade union Siptu accused the company of trying to “rip up negotiated agreements” under a new rescue plan.

Tara Mines general manager Gunnar Nystrom said on Thursday that the losses posted by the Irish mine last year would have been “substantially higher” had operations not been suspended.

“External market conditions remain extremely challenging, and the current price of zinc is of major concern,” he said.

“This demonstrates the importance of reaching an agreement with the group of unions on the rescue plan proposals to enable the operation to reopen on a sustainable basis, with better protection against external market conditions,” he added.

“We remain in discussions with the group of unions and continue to work towards achieving an agreement,” said Mr Nystrom.

The mine employed about 600 people before it went into care and maintenance. The company envisages that under its proposals, it will employ about 400 full-time staff if the rescue plan is adopted and the mine reopens.

“It is clear the company is intent on attempting to rip up negotiated agreements and downgrade the hard-fought-for terms and conditions of employment of our members,” said Siptu TEAC division organiser Adrian Kane last month.

Boliden reported fourth-quarter revenue of SEK20.7bn (€1.83bn) and earnings before interest, tax, depreciation and amortisation of SEK3.73bn (€330m).

Boliden also received about €15m during the fourth quarter from an insurance claim related to flooding at Tara Mines in late 2021.