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Low prices shutter Island’s Quinsam coal mine

Depressed commodity prices have forced another British Columbia mine to curtail operations. Quinsam coal mine near Campbell River has suspended operations and plans to reduce its workforce of 66 people considerably.

Depressed commodity prices have forced another British Columbia mine to curtail operations.

Quinsam coal mine near Campbell River has suspended operations and plans to reduce its workforce of 66 people considerably.

“Due to a prolonged and steep decline in thermal coal prices, changes in market demand and policy disincentives, Quinsam Coal cannot operate economically and will suspend coal production indefinitely,” mine owner Hillsborough Resources said in a statement.

Five B.C. coal mines have shut down in the last two years due to a prolonged global glut and low prices for both thermal and metallurgical coal.

Quinsam, which has operated since 1987, produced thermal coal for the cement industry.

The company did not say how many workers would remain at the mine, but did say it was being put up for sale.

In a Business in Vancouver interview, Hillsborough Resources CEO David Turnbull said the company will continue to ship coal from its inventory to meet its contractual commitments in 2016.

“There may be certain parties that are more interested in a mine that’s in suspension than ongoing operations in an environment like this, so they have the option of bringing it up when the market improves,” Turnbull said.

Another Island mine, Myra Falls, continues to work with a skeleton staff, due to low commodity prices. Staffing at the zinc and copper mine near Campbell River was reduced to 56 after 88 workers were laid off in late October. When the mine is in full operation, it employs 356.

The mine’s owner, Switzerland-based Nyrstar, has postponed funding of mine upgrades, which means it remains idle. Operations at Myra Falls were suspended last April.

The union representing 280 workers at the mine has in the past raised the spectre of the mine never reopening after suspension of operations.