Tara Mines, which has been inactive since the previous summer, is formulating a plan to recommence operations, despite a loss incurred before tax of €67.5 million in the past year. Their recently released results for the year ending 31st December 2023 reveal a fall from a profit of €24.4 million prior to tax in 2022.
The main operation of the company is to extract ore from its Navan, Co Meath mine, which they convert into zinc and lead concentrates for export. The company also undertook a mineral deposit search in order to prolong the mine’s lifespan, an endeavour they referred to as “successful”.
Tara Mines made a turnover of €98 million, marking a decrease of 61 per cent from the €252.9 million made in the preceding year. They attribute this to dwindling zinc prices, decreased metal grades, a weaker US dollar, and reduced production due to the halt in operations.
Zinc’s average price experienced a 24 per cent dip compared to 2022’s average. In 2023, the company mined and purified 1.1 million tonnes of ore, a 48 per cent reduction from the year before.
Tara Mines, under the ownership of Boliden, a Swedish parent company, put operations on hold and initiated a period of “essential care and maintenance”. This decision followed plummeting zinc prices internationally and escalating energy and other costs. The company, however, promised that staff would be reinstated with the original terms and conditions.
The company asserted that running the mine is among the priciest worldwide, necessitating operational changes to remain profitable during periods of low zinc prices. Boliden hasn’t ruled out permanent closure if zinc prices remain stagnant, though a note in the latest accounts suggests the directors expect a temporary closure period.
The statement further indicates, “In the face of continuing challenging market conditions, the team is liaising with principal stakeholders and union groups to come up with a sustainable plan to recommence operations”.
The decision to pause operations was made to “secure the long-term future of the group, as a response to the considerable, unsustainable financial losses experienced in the first half of the financial year”, the company explained.
The board members are of the opinion that despite the upkeep costs, carrying on the operation would have resulted in more significant financial damage for the entirety of 2023, according to projections. Deficits experienced during the first half of the financial term were precipitated by a number of elements, which rendered this resolution unavoidable.
Such elements incorporated a drop in zinc value, escalated energy costs due to international conflict, general cost blowout and internal operational difficulties. From the moment of halting, the group has obtained monetary backing from Boliden to finance the upkeep, and Boliden has pledged to provide such financial assistance to the group for an indefinite period going forward.