Posted September 21, 2018 04:00:00As it prepares to close a massive copper mine in Peru, a global copper producer is facing another threat to its global supply chain.
Sierra Pacific Industries, the world-leading producer of copper and zinc mines in the Pacific Northwest, announced this week it is cutting 1,100 jobs as it prepares for the closure of its Coruña copper mine.
Sierra Pacific announced the decision in a statement on Wednesday, saying the mine had become a significant burden on its operations and that the closure would have a significant impact on the company’s ability to compete globally.
The mine will be closed by September 20, 2019.
Sierra, a wholly-owned subsidiary of Canadian mining company Rio Tinto, had operated the Coruñas copper mine since 2008.
The company has more than 4,000 employees in the Northwest.
The Coruño mine is one of the world ‘s largest copper mines, and the largest copper producer in the world, according to Sierras own website.
Coruña is one the largest remaining copper mines in Peru and one of its largest producers of zinc.
The mine is the second largest in Peru with a capacity of more than 1.6 million tons per year, according Sierranos website.
The plant is located in a mining town on the outskirts of the city of Puebla.
Corúñas chief executive officer, José Luis Rodriguez, said in a press release that the decision to close the mine was made in consultation with the company and its board of directors.
Rodriguez said that in light of the current economic conditions, the company has chosen to invest more in its mines and increase production capacity.
Rodriques decision comes as other mining companies have announced that they are closing mines in Argentina and Chile due to low prices for copper.