Mine closure in Red Lake, Ont., surprises mining economist

The news of a temporary closure at the Rubicon Minerals mine in Red Lake, Ont., came unexpectedly to one mining economistat the Centre for Excellence in Sustainable Mining at Lakehead University.

The shutdown of the mine is leaving 330 workers without a job in the northern Ontario town with 5,000 residents.

In a paper highlighting key mining developments, Karl Skogstadsaid the Rubicon mine was one of the more promising projects in northern Ontario.

• Red Lake seeks to reload after Rubicon layoffs
• Rubicon Minerals lays off 330 employees
• Red Lake area running out of power for mines

"That came as a bit of a surprise to me," Skogstad said. "That was one of the two projects that we said, 'this is going to open, you know, relatively on schedule, and it's doing well.'"

The volatile price of gold is presenting challenges to companies such as Rubicon, headded.

Phil Vinet, the mayor of Red Lake, echoed a similar sentiment earlier in the week, pointing at the roller coaster ride taken by gold in the stock market.

Skogstadsaid a new strategy for gold extraction will be key in helping the company restart their operations in Red Lake after the company reported difficulties due to operational complexities.