Dropping moly prices have forced the suspension of operations at Endako Mine near Fraser Lake.
Thompson Creek Metals holds 75 per cent interest in the mine and along with its partner company have decided to temporarily close Endako at the end of the year.
In a press release from the company, it says approximately 50 per cent of salaried employees will be terminated, resulting in estimated severance costs of approximately $1.7 million.
Hourly employees have been notified that their employment will be temporarily suspended in sixty days.
Fraser Lake mayor Dwayne Lindstrom says it has been a lot to take in.
“It’s devasting, especially for a small town,” he says. “You take 400 people out of the workforce in a small town of about 750 people, that is a heck of an impact.”
Lindstrom says he is meeting with the province next week to figure out their next steps.