Tara Mines to reopen from July but number of workers significantly cut

Tara Mines

Anne-Marie Walsh

Europe’s largest zinc mine at Tara Mines will begin reopening from July, almost a year after a shock closure that led to 600 layoffs.

Over 400 employees will return to work after they backed an agreement between their unions and management in a ballot.

Swedish owner Boliden Group said the deal “enables the process of reopening the mine at Tara on a more financially sustainable basis”.

It said there will be a reduction in headcount to around 400 full-time workers, compared to over 600 before the mine went into “care and maintenance” during the closure, in a statement to the stock market. The company is seeking around 150 voluntary redundancies.

Boliden said employees will begin their return to work on a phased basis during the third quarter of this year “with an onboarding and retraining” programme.

There will be significant organisational changes and changes in the ways of working, it said.

“I am pleased that the agreement has been accepted,” said Tara Mines general manager Gunnar Nyström.

He said the last number of months have been very difficult for employees, their families and the wider community.

“I would like to thank our employees for their patience during this difficult period,” he said.

“The result of the ballot is welcome and will enable us to move forward. We will now begin the process of re-opening and employees will commence their return to work on a phased basis. We will communicate next steps with our employees in the coming weeks. We look forward to welcoming them back to work.”

Minister for Enterprise, Trade and Employment, Peter Burke, welcomed the announcement that agreement was reached on the reopening plan following extensive talks at the Workplace Relations Commission.

“I want to commend all parties for the efforts that they have made to ensure a positive outcome in difficult circumstances,” he said.

He said the government will ensure all available supports are put in place for workers that choose to take voluntary redundancy, including supports for retraining and job search assistance.

The minister said Tara Mines is a major employer operating in an important sector and the government is committed to exploring the possibility of strategic supports to incentivise longer term investment by Boliden in Tara Mines.

Boliden Group said the mine was put in care and maintenance due to a combination of factors, including negative zinc price development, overall cost level and operational challenges.

The agreement includes an “optimised mining plan” that it said reduces transportation distances and maximises metal output.

This will be coupled with an organisational redesign, a reduction in employees and improved ways of working, it said.

It said a ramp-up of production will start during the fourth quarter of this year and full production is expected from January 2025.

It is understood that some workers may be brought back to the mine in Navan as early as June.

Members of the Tara Mines Group of Unions voted to accept the proposals, agreed at the Workplace Relations Commission, on the reopening of the mine in a ballot counted this morning in the Siptu Dan Shaw Centre in Navan.

Siptu organiser, Andrew McGuiness, said: “This has been a decisive vote in favour of the proposals by members of all the unions which make up the Tara Mines GOU. Siptu members voted by 67pc to 33pc to accept the proposals while similar sizable majorities in favour were also returned by Connect and Unite.”

Connect regional secretary, Tom Faulkner, said workers have had to accept a lot of change and there is a significant number of voluntary redundancies included within these proposals.

However, he said the vote should allow for the immediate commencement of the process of fully reopening the mine and secure the economic benefits of its operation into the future.

Unite regional officer, Brian Hewitt, said: “Overall we believe this a positive day for Tara Mines, our members and the surrounding communities. Tara Mines is a very important resource extraction facility which is key to zinc and other metal production not only in Ireland but wider within Europe and globally.”

Siptu sector organiser, John Regan, said the work of the Tara Mines GOU will now focus on ensuring the government makes good on commitments it has provided concerning changes to support the future operation of the mine.

These include changes to how royalties are calculated, and the provision of energy subsidies and concessions in relation to the social welfare supports that the laid-off workforce will continue to require until the mine returns to full operation, he said.

“Our members have made sacrifices to return this mine to full operation. In this ballot, they have decisively placed the interests of their local communities, which are heavily dependent on the economic benefits Tara Mines brings, and the future of the facility to the fore.”

He added: “It is a day that hopefully also brings to a conclusion a very difficult period for everyone involved and the wider country which recognises the importance of the utilisation of our natural resources in a sustainable manner.”