The downturn in molybdenum prices have cost 57 local workers their jobs.
Endako Mines, owned by Thompson Creek Metals, recently issued layoff notices to 29 temporary employees and 28 summer students as the company grappled with a slowdown in molybdenum demand.
"We were sorry to have to let some of our temporary employees at Endako go," said Jocelyn Fraser, the company's director of corporate responsibility. "They were a good group and, although they were only with us a short time, we appreciate the work they did."
The price of molybdenum has dropped from US$17 in June 2011 to US$13 in June this year. According to Platts - a trade publication specializing in the commodity conditions of metals, energy and petrochemicals - the world's biggest user of molybdenum, China, has cut molybdenum use by 25.5 per cent this year compared to last.
Strengthening steel is the main use of molybdenum.
"Mining tends to be a cyclical industry and we are all optimistic that this current downturn will be short lived," said Fraser. "Each of these factors [market prices, foreign usage] is outside of our control and drives a need to carefully consider costs."
Next summer the company would once again consider hiring summer students. Most of the temporary workers were hired to get Endako Mine's new mill up and running to service its recent expansion. Fraser said that task is now complete, the mill is running, and a permanent workforce of about 400 people is now employed mining the molybdenum ore from the mountain ridge between Francois Lake and Fraser Lake, about 200 kilometres west of Prince George.
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