Hudbay is laying off an unconfirmed number of northern Manitoba employees, with some individuals familiar with the reductions putting the number at 27.
A union source confirmed to The Reminder that there have been layoffs at Hudbay’s exploration arm, HBED, but could
not say how many.
Another source within Hudbay said one of the employees being let go is a geologist at Reed Mine.
Sources said other people laid off include casual employees within the Flin Flon operations.
None of the employees losing their jobs are with USW Local 7106, whose members work in production, a union source said.
Hudbay is not publicly commenting on the situation.
“I do not comment on details surrounding our internal employee movements for any of our unions and staff,” said Rob Winton, vice-president, Manitoba Business Unit.
Added Winton: “These are very difficult times in our industry and we will continue to make decisions that will ensure our long-term viability.”
Another change at Hudbay relates to contractors working for Cementation, a major mining contracting company.
Sources familiar with Cementation said its contractors are winding down their work at Hudbay, at least for now.
Winton confirmed Cementation has completed its work on the exploration ramp for 2015 and 2016 exploratory drilling at Lalor Mine.
“Contractors are scheduled to return in 2016 for different scopes of work throughout Manitoba,” he said, adding that Hudbay utilizes contractors for specialty work or during times of peak workloads.
The news comes as base-metal prices sit at multi-year lows, prompting caution among mining companies.
There could be a silver lining for Hudbay. Outgoing president and CEO David Garofalo believes the company is positioned to be “an acquirer in these depressed metal markets versus a lot of companies that don’t have the quality of portfolio nor the balance sheet to perpetuate their business.”
