WAIT Unions and management meet but reopening date still hangs on zinc prices rebounding

Fears of a lengthy lay-off at Tara Mines have been expressed as the chief executive of parent company, Boliden poured cold water on any hopes of an early return to production.

Unions at Tara Mines who met with management today (Tuesday) said they were disappointed that the company could not give them any indication of when there would be a return to work.

"We still cannot get a date on a return to work. We don't know when zinc prices will rise or electricity prices go down," said John Regan, sector organiser SIPTU.

"We raised a number of issues with management, they listened and we are meeting again in two weeks time."

A source within the union said operational issues were discussed, they looked for extra manpower to be included in the care and maintainence program but the company refused.

They asked the company to comment more on Mr Staffas' remarks regarding reopenng, but they would not comment further.

"There is an awful lot of anger still from employees towards the company," he said.

A formal review of the WRC proposals and the future of the mine will take place between union representatives and Boliden, in October.

Europe's biggest lead and zinc mine is currently in care and maintenance mode as its 650 strong workforce have now been laid off indefinitely.

Under the terms of the deal accepted by workers two weeks ago, a payment of €65 a week will be made to the workers during the lay off and health insurance premiums will be paid.

It was agreed following a ballot of members of SIPTU, Unite and Connect Trade Unions and will be reviewed on a fortnightly basis.

Meanwhile, Mikael Staffas, Boliden's president and chief executive has cast doubts over an early return to work, warning that he does not expect a good rebound in zinc prices until next year. However, he also said any deal to secure lower energy prices could lead to a quicker reopening of the mine.

According to a report in the Sunday Times, he blamed falling zinc prices, growing recession in Europe and the strengthening of the euro against the dollar for the closure of the mine.

He said the company lost €38 million in the three months to the end of June, which was totally unacceptable.

Aside from falling zinc prices and inflation, he also said energy prices played into the equation and any deal to secure lower energy prices could lead to a quicker reopening of the mine. The Minister for Enterprise, Simon Coveney had indicated that the Government is prepared to help Tara Mines with its energy costs through the Ukraine enterprise crisis scheme for large energy users, but intimated previously that this was not likely to be sufficient to prevent closure.

A sum of €4.6 million has been made available to cover an early retirement scheme, which will be offered to some of the workers at the plant. Mr Staffas said the care and maintenance period would be loss making and the mine was likely to post losses of €18 million in this quarter and €12 million in subsequent quarters.

Exploration of the Tara Deep deposit has been stopped in conjunction with the mine being placed under care and maintenance.

Despite the shutdown he was upbeat about the long term future of Tara.

"We will come back when the prices and terms have returned, so that we can run turn it profitably."

Boliden is working actively to extend the life of the mine in parallel with ensuring its competitiveness.