Cantung Mine announces temporary layoffs

Anothermining operation located near Watson Lake, Yukon, isin financial trouble.

North American Tungsten Corporation's Cantung Mine, located north of Watson Lake on the Yukon-Northwest Territoriesborder, has announced temporary layoffs for about 80 workers.

News of the layoffs comes just months after the Wolverine Mine in Southeast Yukon shut down earlier this year. It's another hit for the community of Watson Lake, who had up to 50 residents directly impacted by the Wolverine closure.

Several dozen people in the area work at the Cantung Mine or at companies that supply the mine, according to Rick Harder, thepresident of the Watson Lake Chamber of Commerce.

"Anytime there's a layoff out there, of course it affects us," says Harder, "because we have quite a few of the local people that work at Tungsten."

In a press release, North American Tungsten says the series of cutbacks will covera sixweek period, and thateach of the 80 workers affectedwill miss one work rotation of threeweeks.

The mine is facing a cash crunch in part because of low tungsten prices and "operational issues" over the past 30 days.In the release, North American Tungstensays it has enough ore on hand to keep the mill running and to supply its customers.

The company doesn't say what will happen when the layoffs end in six weeks if the price has not improved.