The clock is ticking on a restructuring plan to save the Canada Fluorspar mine in St. Lawrence from shutting down.
The company has been given 30 days to restructure its debt with a goal to resume operations at the mine. And as the only one of its kind in North America, producing a mineral that’s in high demand, there’s optimism that will happen. But by all accounts it was, and still is, a close call.
Court documents state operations were set to end and all employees would’ve been terminated within days of the application for interim receivership being filed and approved.
The sudden news and layoffs this week were a shock for many, including employees of Canada Fluorspar.
It was only in November when the CEO raved about the growth of markets, prices and opportunities. But there are still issues with shipping, and having to truck product 50 kilometres to Marystown to get it to world markets. Other operational and COVID-19-related matters were also blamed for slowing production in recent months.
Creditors, meanwhile, are watching closely, including the province, which gave the company a $17-milllion loan that’s due in December.
And then there’s the town of St. Lawrence itself, with the mine accounting for almost a third of its budget in lieu of taxes.
While it’s not clear when word will come on the restructuring, the court did order a website to be set up with all documents and updates for the public to view.