Whitehorse Daily Star

Company shuts Ross River area mine, lays off workers

The Yukon Zinc Corp. has shut down its Wolverine Mine southeast of Ross River, resulting in layoff notices for most of its workforce.

By Chuck Tobin on January 26, 2015

The Yukon Zinc Corp. has shut down its Wolverine Mine southeast of Ross River, resulting in layoff notices for most of its workforce.

Company spokesman Alex Wu told the Star today operations were terminated last Thursday because of instability in the mineral markets, particularly the price of silver.

Wu could not confirm the exact number of employees affected but expected Yukon Zinc would have an official statement in the next couple of days.

The Chinese-owned company is calling it a temporary, three-month shutdown at this point, he said.

“We will see what the situation is in the next couple of months and make a decision to see if there is an opportunity to start up or keep it closed for a bit longer,” Wu said. “We were trying to keep it going longer, but it is down to the point where it is pretty difficult to keep things going.”

Wu said the company has been in contact with its suppliers and is working on new plans to raise the financing to address outstanding debt.

A crew has been kept on to look after care and maintenance of the mine site and mill during the shutdown, he said.

Watson Lake Mayor Richard Durocher said this morning he’s already seeing the trickle-down effect in the Yukon’s third-largest community of approximately 1,500.

A couple of houses being rented by employees of Sidhu Trucking, which had the ore haul contract from the mine to the port at Stewart, B.C., have already been vacated, he pointed out.

The mayor said the change in the amount of activity in town is noticeable.

Though not certain, he believes there were 100 or so employees at the mine site on any given day, with about that many on days off, as the mine was working on a shift schedule of two weeks in and two weeks out.

He said there are Watson Lake residents who were working at the mine and the shutdown will have a negative effect on local companies who were supplying Yukon Zinc with goods and services.

“It’s going to hurt, definitely,” Durocher said.

He said some have already left the community.

Sidhu Trucking was moving somewhere between three and five truckloads of concentrate every day, the mayor pointed out.

“Within a week, we have seen change.”

The mine’s mill began producing concentrate in late 2010 and reached full commercial production capacity of 1,700 tonnes per day in early 2013.

In April 2013, Yukon Zinc announced there were 365 employed by Yukon Zinc and its contractors.

In June 2013, however, the company announced it was laying off 30 per cent of the employees of the workforce because of uncertain economic conditions, though it recalled a portion of those workers in September 2013, when it began ramping up production again.

Comments (17)

Up 0 Down 0

Mike on Aug 9, 2017 at 11:48 am

I understand the Wolverine Mine is shut down and they have a few people
watching the site. I had a friend working at the Wolverine Mine and I would
like to get a contact number of a person still on the site. If you have number
you could email me I would be grateful.

Up 0 Down 0

Smurf on Feb 2, 2015 at 12:07 am

@getting angry about immigration abuse in the Yukon: Totally agree!
ook up the ads at "Yuwin": More and more are showing up with a NOC number. Why? Because the employer has already somebody and is "sponsoring" the employee (Nominee Program)!

I applied already for around 10 of those jobs (I'm employed and lots of experience but want to have a career change). Also I'm a Yukon resident since many years.
No calls and no emails - not even worth a click to return the email delivery "receipt".
This needs to change because it is not a real job market anymore!!!

Up 0 Down 0

Fed Up Yukon WC -Wilf Carter on Feb 1, 2015 at 10:36 am

Good points and I agree with some of them. I glad you are bringing your points of view forward because creates a healthy debate on where the Yukon is at and going. I am not economist. I started in small family businesses, attending university and tech school and working in senior management both in the private and public sector. Where I get my information is on line research. There is data out there that is BS and some real stuff. I have talked to people who just don't want any development in the Yukon. Like Jim P the new premier of Alberta stated yesterday that Alberta is overspending and relies totally on oil and gas revenues to underwrite their budgets each year. The same with the Yukon. We rely on the Federal Government to underwrite our budget by 75% or more.
That means we have most of our eggs in one basket. I worked as a senior adviser for economic development until I and 10 others were pushed out because management did not know how to manage very experienced people, replaced all of us with people who are educated but no experience in economic development. The Yukon has major patches of messes which no party will ever clean up. The 5% is hurting the 95%.
Far as economic development and heavy industry, oil and gas mining has pumped billions into the Alaska, Alberta and BC economy over the years. The Yukon can do the same but we don't have the leadership in parts of the Yukon Government to manage the development. Public Service Commission, Economic Development, Justice, agencies of the Yukon Government and the Yukon Employees Union is just wasting money by the $10 of millions of dollars ever year. HWP and EMR are doing the best job they can to support the Yukon. There is managers in positions who don't have the skills or experience for the positions they hold. As matter of fact, the Yukon Government department agencies and YEU have 11 lawyers spending $100 of thousands of dollars trying to stop me. In fact most governments like the Yukon structure does not work because of weak links in the system and cause more harm than good.
We need outside investment for our development whatever it is but it is how we manage it that counts. We don't do development at any costs but what is the best interest of Yukoners first.
History has shown that there is always at least 5% of any population in any area against development. These people are usually very strong and passionate about their beliefs and will make a lot of noise to get their point across. What happens is it becomes emotional, not based on fact. There are people that are strong on the environmental movement that live Canada and the US. There is big business in the US that are mostly liberals funding to support them to stop Canada from developing our resources from Canada. What do you call that.
I have worked in different areas of Canada and the US and with companies from the middle east. Today's environmental movement has pushed for positive change and things are changing.
The Yukon needs to broaden their economy which it can do but you need leadership and structure to make it happen. Do Yukoners know that the four largest mines in Alaska are owned by Canadian Companies? Why can't we get more North American investment in Canada? There are Trillions of dollars sitting in banks accounts in the US and Europe doing nothing that could be invested to grow or economy.
Does the Fed up Yukon-er remember when Sweden came to the Yukon to collect pine cones to rebuild their forest? We can have a forest industry here but show me the leadership to make it take place.
I am very passionate about the Yukon and I want my kids to come back and work and live here. But to do that, we need a real economy which we don't have. There is a group whose only interest is to stop any development.
Thanks Fed Up Yukoner for taking the time to put your beliefs forward for all to see. I wish more people would. There is no right or wrong answers but what can be and what the Yukoners want for themselves..

Up 2 Down 0

getting angry about immigration abuse in the Yukon on Feb 1, 2015 at 10:21 am

Just backing up 'fed up Yukoner'. Given the job losses in the mining sector, (boom bust, business as usual), are we going to start taking immigration program abuse seriously in the Yukon?

I talked to two people yesterday who are searching for jobs right now in the Yukon. One example of an outrageous demand probably aimed at 'not finding a Canadian worker'. This young woman was told by the hotels she applied at that they require FOUR YEARS EXPERIENCE for her to get a job cleaning rooms! Gee, wonder why that would be? Perhaps so they can say they cannot find a qualified worker?

The other, a Canadian who has lived in the Yukon for 20 years is not even being called back and he did apply at some of the big stores in town that are heavily staffed by foreign workers.

The Nominee Program and other immigration programs are being massively abused in the Yukon. I am angry when I see Canadian workers unable to find jobs while people lie and say they can't find workers. They are breaking immigration laws, which is a criminal offense.

You never hear a peep out of any of the political parties about this issue. The government should be sending out auditors to apply for these job calls.

There should be an advertised phone line/email address to report employers who give stories like needing four years experience to clean a room, or who do not respond at all, etc. Just a quick call to report these employers, then see if they show up at the Nominee office saying they could not find a Canadian resident worker.

Up 5 Down 3

Don't bite the hand that feeds you on Jan 31, 2015 at 10:09 am

Ontario has pumped a lot of money into the Yukon by Federal transfers payments because it was and still is the engine of the Canadian economy.

Up 5 Down 0

fed up Yukoner on Jan 30, 2015 at 7:01 pm

WC, am guessing you are an economist otherwise how could you come up with that gobblygook. We have no economy because we have no common sense in the leaders of this territory. Too bad no one made Fentie and Kenyon reveal what they promised to China on their junkets there and subsequent trips by the Pasloski gov. Oh right, we peons don't need to know the trivial details. I would like to see a cost survey on the pros and cons of giving the Yukon away to foreign mining companies. We build power infrastructure with ridiculously expensive inefficient projects and the mines pay less for this power than residents do. We give a fortune in exploration grants, we have a big boom and now we are paying. was is worth it? And I would love to know how many Government workers we have in the Territory these days, that also used to be public knowledge, there is no way we need probably 8000 of these jokers to run a piddly 35,000 people. The worst cause of our grief will be the insane amount of $$ we get in transfer payments, that's gonna dry up and we can't run this territory on that. Wait till the hammer comes down on those payments and while we are at it, why do we have over a thousand temporary workers here in the guise of not having enough workers living here already, we do, just not the kind the big corps need to make even more $$, so no there is no 5% antidevelopment group wrecking things for the territory, the government did that all by themselves. We have never been in such bad shape and had such a (hidden) deficit in the 40 years I can remember in politics.

Up 7 Down 0

Moose on Jan 30, 2015 at 3:37 pm

I wonder how many Yukoners were able to afford the plane ticket, $300 yacht ticket and other expenses to attend the elite Yukon Party Boat Cruise?

They are fiddling while Rome burns. Living it up in Vancouver while mines close down in the Yukon. When they returned, they simply issued a release about how they were helping the mining industry by extending credits for staking. Not a bloody word about the mine closure (that I saw). Ignorance is bliss I guess.

Up 8 Down 2

Wilf Carter I am from the Yukon on Jan 30, 2015 at 2:04 pm

I am from the Yukon not Ontario. I want the Yukon like most Yukoners to be successful. The problem is no one has consulted Yukoners on the economy.

Up 6 Down 6

Salar on Jan 30, 2015 at 8:23 am

Well interesting comments on going forward economically..'horizontally, vertically...parallelogram'. Really? So with that we can feel assured all is well.....that, or the Billion plus coming from Ottawa each year?
How about develop with some sense of scale.....we're never going to be closer to markets....ever, we're north of sixty.
And please stop trying to Ontarioize the Yukon...keep it simple....its houses are out of reach, budgets for individual homeowners could better support local business, making for a more robust and level economy.....to scale.....if the cost of owning a home here weren't so high......and I don't mean free housing or social housing or affordable housing......just straight up mortgageable houses.

Up 11 Down 5

We Need to Change our economy so it is more stable is what Yukoners Want - WC on Jan 29, 2015 at 1:18 pm

95% of Yukoners want our economy to be successful and grow. You have 5% trying to control the economy agenda with anti development plans. You have three political parties not knowing how to move our economy forward. You have Departments like EMR and Highways working very hard to support our economy and the growth of the Yukon.
The Yukon Government has no economic development structure in place to develop the economy of the Yukon.
We don't have any vision or how to deliver the vision in the Yukon.
Construction does not drive an economy, increasing the minimum wage does not drive an economy. These are just two examples of lack of understanding of how to drive an economy. Liberals seem to have nothing on the table.
There are simple approaches to driving the economy:
1. Be progressive by increasing the economic growth both vertically and horizontally.
2 That means increasing the wealth generators providing more wealth for Canadians and Yukoners.
3. This provides a much higher standard of living.
4 Keep taxes at a reasonable level for all.
5 Do not introduce regressive taxes that will slow down the economy.
6. Some liberal leaders and most conservative governments have stayed away from regressive taxes.
7. You have both the liberals and NDP wanting to add regressive taxes into our economy in the future by putting on more taxes especially higher income families.
8 If those parties get into power between 50 and 60% of individuals in the Yukon will see a higher tax bill especially the middle class.
9 the Yukon's mean income is about $40,000 per year where Canada is $29000 per year. If the federal government changes both parties it will affect the Yukon economy with bad policies negatively taking money out of our economy.
Paul Martin and Stephen Harper both have done things to make our economy better and stronger. We were lucky over the last 20 years to have strong economic leaders to steer Canada through the economy water. You can say whatever you want about these two men but they have and are doing right for Canada economically. Look at all the growth in the Yukon.
There is no members in the NDP who understand economic growth at all. Show me the money policy?

Up 54 Down 2

ProScience Greenie on Jan 27, 2015 at 4:49 pm

Actually steve we have a government based economy, not a commodity based economy. That needs to change.

Best of luck to all those out of a job. Let's hope all our politicians at all levels stop the 'them vs. us' squabbling and put their heads together and work towards bringing us a strong, diversified and stable economy.

Up 21 Down 27

hannah-Idaho on Jan 27, 2015 at 2:39 pm

Scott (Napoleon) Kent : whilst you are down at Roundup sucking down those free beers and taking a second helping of roast Alberta beef at the 'Yukon Night' celebrations tomorrow... stay down there and don't bother to come back. You know it makes sense. ( PS - Josey Wales : you are one predictable commenter on these boards. Time to try a new tone ).

Up 33 Down 4

steve on Jan 27, 2015 at 12:10 pm

I have to laugh that people will blame environmentalists for commodity prices tanking in the world. While I have no love for environmentalists that won't compromise, give your heads a collective shake!!! The Yukon has not diversified and is still a commodity based economy which is at the whims of commodity markets. The smart thing would be to diversify and not put all your eggs in one basket. The more you diversify the economy the less these shut downs will hurt. Pretty simple economics but then whether you are on the right or left using this as an excuse to blame others really shows your lack of understanding of simple economics.

Up 23 Down 9

wolfe on Jan 27, 2015 at 11:52 am

Have no fear..Paz and the crew of the Good-ship Lollipop are booze cruising for new suckers as we speak..
Shud have that mine up and running before it is closed me thinks!

Is there a junket for tourism? That is about all there is going to be up here for a few years - at least the dollar and gas are in our favour..maybe Paz and the crew should by RV's and hit the road!

Up 36 Down 22

Josey Wales on Jan 27, 2015 at 7:59 am

Well, this should PLEASE the anti-everything crews and their minions...the hippycritesm(less the mess). Jobs? We don't need no stinkin' jobs, we can pay our bills with love and good intentions.

Get used to seeing more U Haul trailors heading south on the highway. Once everything real is "shut down" here and in every lil place where is deemed an eco zone is dormant, ya think the administrators and chair warmers within' the government feed bag...will get laid off?
Rhetorical....they will enjoy their free time to peruse internet jokes and fill out more survey forms to "fluff up" the anti-everything numbers.

This mine I doubt will re-open as proclaimed. I think as we have been sliding into a depression of our total bogus and fake economy for awhile....this is a big flag.
I guess we'll have to beg for a bigger transfer payment so our many artists/elites and professional protesters...will never have a want for guitar strings, clay, and paint brushes, yoga sessions, ski hill time... and protest signs.
.....whilst they bleat on how "we should" live our lives.

Up 20 Down 8

B. Foster on Jan 27, 2015 at 7:40 am

When the need for the resource is really just cover for the profit driven motive behind it all, it is sad to see and realize that it is really just a crap shoot in the end.
The very minute, essentially, that the mine is no longer "profitable" people's needs become secondary to a foreign corporation's bottom line.

Google foxconn or apple factory nets and see the mentality that strives to pull our resources from the ground to fuel a rampant consumerism of cheap and, in many cases, substandard goods.

Up 28 Down 3

YT Guy on Jan 26, 2015 at 5:00 pm

Ok, this is not good news, but I hope no one is surprised. This is how it goes. Boom and bust, open and closed. It's been happening since we first started mining here in 1898. You put all your eggs in one basket, and these events will hit you much harder than if you diversify, and anyone who think's that if and when Casino starts up, they will be immune to this, is dreaming.
The good news is that this shut down won't hit us that hard. There were not that many locals working there. Last time I was in there, most of the workers I met were from out East or Vancouver Island. Thunderbird air had direct flights from Campbell river to the mine sight. Also, local suppliers have been on cash up front with Wolverine for quite some time. I know of at least one local young fellow, a professional in the mining industry, who is now out of work, but that's life in the mining industry, and one of the reasons I never finished my geology degree. It's also one of the reasons I turned down a very lucrative offer from Graham Turner at Main Street back in the 80s when they were doing all the development work at Ketza. Boom and bust.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.