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Be the first with the news that moves the market- New Gold Inc (TSX:NGD) has announced it will close the Rainy River mine due to COVID-19 regulations
- The Mine site is close to the United States Border, with a large portion of the workforce coming from the U.S side
- Regulations now require anyone entering the U.S side to self-isolate for 14 days
- A large portion of the workforce on the Canadian side of the border have recently crossed into the U.S, as is common in the region
- New Gold Inc (NGD) is down 3 per cent, with shares trading at C$0.80 and a market cap of $561 million
New Gold Inc (TSX:NGD) announced they are closing the Rainy River Mine in Ontario as large numbers of employees begin self-isolating.
The Rainy River Mine sits just 65 kilometres from the United States border, and it is common in the area for residents to frequently cross back and forth.
In line with health Authorities recommendations in Canada and the US, anyone crossing the border is self-isolating for 14 days.
This puts a significant dent in the workforce of the Rainy River Mine, as those employed in the mine on the US side of the border cannot cross over to work.
It also means that those on the Canadian side of the border who have recently crossed into Minnesota will also have to self-isolate.
The company maintains no employees have tested positive for COVID-19, nor have they presented with symptoms.
With a significant portion of the Canadian workforce voluntarily indicating to management they had made such trips recently, and as such are now required to self-isolate, the decision was inevitable.
The Company will close the rainy river mine for 14 days to allow those Canadian employees to conduct their two-week isolation then return to work.
Closing will also allow any US workers who choose to do so, to cross the border, self-isolate for 14 days, then return to work.
The closure of the US-Canada border to all non-essential travel is imminent, so the company does not expect this problem to occur again.
The suspension will be assessed over the shutdown period, and only when full or partial operations can be resumed in safe conditions will work resume.
The company does not believe they will need to amend guidance for the year.
During the 14-day isolation period, the Rainy River Mine will maintain a minimum crew to monitor and maintain essential activities and ensure
The company is also fully sanitising the camp, mine site, all equipment and all environs in which personnel will operate.
The company is also re-configuring the camp to reflect recommended social distancing principals.
New Gold Inc (NGD) is down 3 per cent, with shares trading for C$0.80 at 10:14 am EST.
