Kirsten Murphy
Northern News Services

Nanisivik (Nov 05/01) - The closure of Nanisivik's zinc mine next year means 200 people -- including at least 20 from Arctic Bay -- will be out of work.

Toronto-based Breakwater Resources Ltd., which owns the 25-year-old-mine, blames the scheduled September 2002 closure on a weak zinc market.

The North Baffin Island mine lost $8.3 million in the first six months of 2001.

"It's an industry-wide problem. Zinc prices are at a historic low," said Gordon Bub, Breakwater Ltd. chairman and chief executive officer.

Closing the aging mine is definite.

"It's not reversible.... If metal prices were higher we could continue on for a couple of years," he said from his Toronto office. "Unfortunately the mine plans we're following will result in all of the economical reserves being mined out."

Zinc prices peaked in the late 1980s at $1.80 per kilogram. Today the base metal price is a sluggish 75 cents a kilogram and falling.

Nanisivik is the fourth zinc mine worldwide to announce a closure in the last two weeks.

Mining in Nanisivik will continue for another year.

"There won't be any significant downsizing at this stage. There might be a few (lost jobs) here and there but we need the total labour force to do the production."

Repeated calls to the mine were not answered.

At least 20 people in nearby Arctic Bay will lose their jobs, said Noire Iqalukjuak, Arctic Bay mayor.

"There have been rumours of the closure but I didn't expect it this soon," Iqalukjuak said. "Local contractors for cleaning and garbage removal will be affected."

The Nanisivik mine is on the northern tip of Baffin Island, 750 kilometres North of the Arctic Circle.

Breakwater Resources op-erates mines around the world, including a zinc mine in Quebec. Bub said all options, including more closures, are being considered. "We have not made any decisions to close other mines although we're continually reviewing our mining plans," he said.