KNOXVILLE, Tenn. (WVLT) -- The East Tennessee Zinc Company will stop mining zinc at its four East Tennessee mines on February 3, 2009, and the company says it will instead convert the mines' operations to "care and maintenance status," according to a company release.
The company says the affected sites are the Coy Mine and the Young Mill in Jefferson City, the Young Mine in Strawberry Plains, and the Immel Mine in Mascot.
"Care and maintenance means that the mines will be idled in the appropriate way to ensure that the mines can re-open in a safe and efficient manner when economic conditions allow," the company's release states.
The company says some 390 employees have been put on notice about the planned cuts. The company says employees who are not part of the care and maintenance team will be paid through Feb. 3.
“Zinc prices at present are simply too low to operate the mines profitably,” said Troy Wilson, ETZC general manager. “It’s particularly unfortunate for our employees, who have done a great job.”
"The price of zinc on the international market has fallen from a high of $2 per pound in 2006, when the mines were reopened, to 52 cents today," the release says.
Until Feb. 3, the company says, the mines will continue normal operations.
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