Shane Cassells (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I do not need to tell the Minister of State about the bombshell that went off last night in Navan following the temporary closure, as has been described, of Tara Mines, and the impact on the town and region. Some 650 people are employed in Tara Mines and 3,000 jobs depend on an income from it. The general manager, Gunnar Nystrom, speaking on "Morning Ireland" earlier, explained why the company took this measure. For the general manager and management of Tara Mines to act in the manner in which they did last night, without any warning for the 650 employees, was not acceptable.

The mine has been in operation in Navan for 46 years. I grew up in the shadow of the mine. It has extracted substantial profits from the natural resources of our town. It has overcome serious challenges in recent years. A severe flooding of the mine in November 2021 threatened its existence.

It has been claimed that the decision was taken having considered all feasible alternatives and implementing measures in other areas of the business. I do not accept that. Last week, I was in contact with employees who raised concerns about what were described as control measures being taken to reduce costs. This included a freeze on recruitment and overtime, the cessation of discretionary spending, training and education, a reduction in drilling and cutting contractors.

Last week, I was contacted by subcontractors who were being let go with immediate effect. There were warning signs last week that I and local media raised. Meetings were scheduled in the coming week with the Minister for Enterprise, Trade and Employment, Deputy Simon Coveney. That makes it all the more strange that, without any consultation with the union, the management has acted in this way.

My thoughts are for the people who work in the mine. Last night, a lady contacted me while her husband had been called into a meeting at 9 p.m. Her husband and son work in the mine; the son had just started as an apprentice. It is not uncommon in Tara Mines for sons to follow their fathers down the mine. There is an entire ecosystem of jobs in Tara Mines. I have travelled to the bottom of the mine some 800 m underground. There are garages in operation, run by mechanics, engineers and skilled electricians. There is an entire skilled workforce down there.

This is the largest zinc mine in Europe. Management has claimed it has taken the action because of a fall in the price of zinc and the cost of energy, but that has not impacted on the mines it owns in Sweden. It worries me that this action has been taken in the mine in Navan The Government can play a role here, and I ask the Minister of State, Tánaiste, Taoiseach and Minister for Transport, Deputy Eamon Ryan, to take action. The Minister, Deputy Coveney, has already engaged with management.

This is a two-way street. There are steps the Government can take. I look forward to hearing what the Minister of State will say. The company has a duty of care to its employees. To simply put 650 people on the dole queue with near immediate effect is not acceptable. These people have expenses, mortgages and families. To deal this body blow to the town of Navan in the unilateral manner in which management did so at last night, with no consultation with the union, is simply not acceptable and will not be accepted.

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Senator, who is from Navan for raising this bombshell this morning. The thoughts and first concern for everyone not only at local level but also Government level is the impact on staff, their families and local community and businesses in County Meath. Having 650 people laid off, even on a temporary basis, is shocking news. The employment situation in the country has generally been improving and has been very positive over the past couple of years. This is a phenomenal shock for people to get out of the blue.

The company has informed the Government that the decision to temporarily suspend operations and place the mine into care and maintenance within the next four weeks is being taken to safeguard the long-term future of the company. That is the essence of what the chief executive said on radio this morning, and the Minister spoke subsequently. They have been in direct contact with each other.

The abruptness of the announcement, as the Senator said, without consultation or advanced notification, was a major shock to the local community. As he indicated, there was word locally in terms of staff overtime, discretionary spending and subcontractors not having their contracts renewed. That sent a clear signal that something was in the offing, but nobody expected the announcement last night.

Government officials are engaging with the company and management team to ensure that staff are looked after. It is important that the company sets out a range of support available to employees during the temporary layoff as quickly as possible. These discussions would not have taken place at this stage. Tara Mines needs to spell out what the expected period of temporary layoff will be.

From a practical point of view, it is important to make sure that as part of the care and maintenance project that will be introduced over the next four weeks the mine is kept in a position whereby once the price improves and cost structures are dealt with it can reopen quickly. We do not want to have to wait a further six months to do some rehabilitative work because the care and maintenance did not keep it up to standard.

From the point of view of the mine, it is important that all necessary funds be expended to ensure it can come back with a prompt opening as quickly as possible. The Department has established a statutory process to protect employees. The full range of State supports will be available for employees who are affected. We will work with the company to explore all options to secure the long-term future of the mine and employment in the area. The parent company has identified a range of operational challenges. They mentioned, and it was on the radio this morning, the decline in the price of zinc, high energy prices and general cost inflation as contributory factors. The company has said that the losses were not sustainable at this point in time. The temporary closure will also impact on the Irish subcontractors and sub-suppliers. I think the ripple effect in the town will be significant. A couple of thousand families will be impacted as well as the direct employees. We will work with them to win alternative contracts through Enterprise Ireland, as appropriate. By this I mean working with the Irish sub-suppliers. They have skills that should be able to be used in other major projects in the country in the short term.

Once again, I want to thank Senator Cassels for raising this issue, which has been a shock. It is not just a shock for Navan and Meath and the employees and subcontractors and their families. It is a shock for the whole country to get a bolt out of the blue like this.

Shane Cassells (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister of State touched on something when he said that the price needs to increase, costs need to be reduced and that this will lead to the cessation of this temporary lay off. The management needs to be honest with the employees as to what the nature of this temporary lay off is. The Government needs to press them on extracting an answer. This is not unprecedented. We were here before with Boliden Tara Mines DAC over a decade ago, when it did the same thing. On that occasion, it lasted for months. We cannot have a scenario where they do not offer some kind of cohesion to the 650 people and the many thousands depending on an income. They said in their briefing document this morning that the decision was communicated as soon as possible. People were hearing about it over the airwaves last night. They had no communication. They talk about being in continuous dialogue. They were not in dialogue to begin with. Saying that they were acutely aware of a deep regret is not worth the paper it is written on this morning. There is a long-term future for this mine. A rich body of ore has been discovered in what is called Tara Deep. This is going to be profitable mine for 50 years to come for the town of Navan. However, in the here and now, the company has a duty of care to its employees and I am asking the Government to press it on the matter. It cannot leave this as an open-ended book with no date on when production is going to start again in the mine.

Victor Boyhan (Independent)
Link to this: Individually | In context | Oireachtas source

Before the Minister of State replies I would like to ask if we could have the speech circulated for the record. The speech here is not actually the speech he delivered. Therefore, you might liaise with your Department and circulate the speech later on. That would be much appreciated.

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Commencement matter put in by Senator Cassels a day or two ago was to discuss the future of exploration mining in Ireland with particular focus on Boliden Tara Mines DAC. That was referred to our colleague, the Minister for Environment, Climate and Communications, Deputy Eamon Ryan, before last night's announcement. Essentially, the script we were working on yesterday was from the point of view of the Department of Environment, Climate and Communications.

Shane Cassells (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister of State has a role in this. The Minister, Deputy Eamon Ryan, needs to sign the drilling licence.

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

What makes it more perplexing is that last November, Boliden Tara Mines DAC applied for the renewal of prospecting licence 4502 at Tara Mines which expired on 29 December 2022. A permanent prospecting licence to prospect for specified materials in a defined geographic area has since been issued very recently. That will indicate the long-term plans for the area. It is not a licence to drill, rather it is a prospecting licence. To me that is a good signal for the future. In the meantime, there must be maximum support from the company and the duration of the temporary closure must be as short as possible.

Victor Boyhan (Independent)
Link to this: Individually | In context | Oireachtas source

I know it is an evolving situation but it is important for the record of the House that we would have a correct, comprehensive statement laid before the House.