THUNDER BAY — Production at the Lac des Iles palladium mine, 90 kilometres north of Thunder Bay, is expected to end late next spring.
Mine operator Impala Canada, which has a workforce of about 750 people, blames low palladium prices for its decision.
CEO Tim Hill made the announcement after visiting the mine last week.
In a subsequent email to workers, Hill wrote that the company is "now executing a plan that anticipates commercial production ending around May 31, 2026," but added "The final date of operations is dependent on several factors, including available tailings capacity and our ability to meet production targets."
A company spokesperson told Newswatch "We've been in a prolonged period of low prices, and as a result the business is not generating the cash flow required to sustain the operation."
Impala had committed last March to giving employees and contractors plenty of notice about a shutdown.
In late 2023, the company announced modest job cuts in the wake of falling palladium prices.
"Our next goal is to make this last year at LDI a great one," Hill said in his new memo to workers. "Let's keep our collective focus on safety and excellence, so we can complete this last year at the mine with our heads held high, proud of what we've accomplished together."
Hill also expressed his gratitude to the workforce, saying that over the past year the mine exceeded its targets for safety performance, production rates and controlled costs.
Most of the workers at the mine are represented by the Steelworkers union, but its leadership has not commented on the announcement so far.
The LDI Mine is one of North America's two known sources of pure palladium, which is used mostly in catalytic converters for gas-powered and hybrid vehicles.
In response to an inquiry from Newswatch about the possibility of reopening the mine in the future, the company stated Monday "There would have to be a major, sustained change to palladium prices" to reverse the decision to cease commercial production, but added it is still in the process of planning for the post-operations period.
