CBH looks towards zinc price recovery
Posted
The managing director of CBH Resources, Stephen Dennis, says a new operating plan for its Endeavor mine in Cobar will put the company in the right position when there is a recovery in metal prices.
The plan involves taking higher grade ore but lower tonnages to try to maintain the mine's viability.
CBH Resources says the lower production rate means 150 jobs will go.
Mr Dennis says the problem is the world zinc price.
"But on a positive note I think that there will be a recovery in zinc prices at some point," he said.
"It's very difficult to say when that recovery will come, if we all knew when that recovery was going to take place we'd all be rich, but there will be a recovery at some point and the outlook remains a reasonable one."
The Mayor of Cobar, Lilliane Brady, says the job losses at the Endeavour mine are disappointing, coming after the 220 positions that were axed at the mine in June.
Councillor Brady says if CBH Resources is unable to find the workers new jobs, the council will ask the New South Wales Government for help.
"Those that are going are local people [and] they are giving them 60 days free rent and trying to find jobs for them," she said.
"They're keeping on all apprentices, so they are really trying to do everything for the locals and the people of Cobar."
