The Gordonsville mine had ramped up to a production rate of more than 3,000 st/d and produced 15 million lb of zinc in concentrates. However, cash costs per pound of zinc produced were well above prevailing prices. The decision to halt mining and development activity followed an extensive evaluation of numerous scenarios and zinc pricing projections that left little support for the continuation of operations, the company said in a statement announcing the shutdown.

“A care and maintenance scenario will keep the mining assets in ready condition as the company’s management and board pursue funding and strategic alternatives toward a workable restructuring that may enable reinstating the project when zinc prices improve and funding becomes available. Staff at the mine is being reduced to a level that will meet care and maintenance requirements, while capital will be deployed for basic maintenance purposes such as dewatering of the underground areas,” the statement said.

Over the past 18 months, SRA has invested about $150 million toward reactivating the Mid-Tennessee zinc complex, and SRA’s management said it continues to view the complex as a substantial resource should full production be achieved. “We intend to restructure our obligations and capital requirements to facilitate restarting the operations when prudent,” said SRA President Victor Wyprysky. “It is regrettable that the perfect storm in commodity and liquidity conditions have converged at this late stage of our ramp up.”