NEW YORK Thompson Creek
Metals Co. Inc. has suffered a wall slough at its Thompson
Creek Mine in Idaho.
"There were no injuries or
equipment damage, and management believes that the event will
not have a material impact on the current mine plan," the
Denver-based company said. It added that "management will
continue to evaluate the potential impacts . . . to
the companys 2012 production and cost guidance for the
The company believes the slough
was the result of water pressure behind the wall caused by
The company did not return a
call seeking further details.
John Tumazos, analyst at
Holmdel, N.J.-based Very Independent Research LLC, said the
event, which displaced about 300,000 tonnes of rock, will
likely have a minor impact on the companys operations.
"There may be no loss of revenue but some cost inefficiencies
related to the cleanup or trucks, shovels, etc. standing
by for several days awaiting the cleanups
completion," he told AMM in an e-mail, adding that
stockpiled ore should be able to cover the loss of
The molybdenum market is not
expected to be affected due to a recent softening in demand.
"Our hunch, based on spot prices and world stainless output, is
that moly roasters have more finished product than they can
sell anyway," Tumazos said.
fourth-largest primary molybdenum mine in the world, according
to the companys websiteis expected to produce
between 16 million and 17 million pounds of molybdenum this
year at an average cash cost of $7.50 to $8.50 per pound.
The mine produced 3.42 million
pounds of molybdenum in the first quarter at an average cost of
$10.34 per pound due to higher stripping costs associated with
ongoing mine pit sequencing.