Endomines Oy commences co-operation negotiations with its whole personnel at the Pampalo mine in Ilomantsi, Finland, on reduction of workforce. The negotiations concern approximately 40 employees and according to initial estimates may at most lead to the lay-off for more than 90 days and/or termination of 32 employees on productional or economic grounds.
Continuation of gold production at the Pampalo mine after September 2018 will require a sizeable investment in the deep extension of the mine. According to the Company’s estimates, the investment would not be profitable at the prevailing market price of gold. Therefore, Endomines considers postponing the investment until a later time and temporarily suspending production. During the current year, the Company is planning to invest approximately 2 million euro in exploration along the Karelian Gold Line in Eastern Finland with the target of enabling profitable gold production in Ilomantsi in the longer term.
"It is very regrettable that we have to commence co-operation negotiations with our personnel. Continuation of production in Pampalo after the coming September requires a sizeable investment in the deep extension of the mine, but the current gold price does not support the investment decision. We therefore consider postponing the investment and temporarily suspending gold production in Pampalo. With the co-operation negotiations we will, together with our personnel, seek solutions to this situation", says Saila Miettinen-Lähde, CEO of Endomines.
Source: Endomines AB