TORONTO, April 08, 2022 (GLOBE NEWSWIRE) -- Noranda Income Fund (TSX:NIF.UN) (the “Fund”) announced today that operational challenges at its electrolytic zinc processing facility (the “Processing Facility”) in Salaberry-de-Valleyfield, Quebec, have negatively impacted zinc production and sales in the first quarter ended March 31, 2022, resulting in a revision in its annual production and sales target.
“A tight labour market and increased COVID-related absenteeism, coupled with cold weather impacting maintenance activities and resulting in a record number of electricity curtailments, have exacerbated ongoing operational challenges in the Electrolytic Hall. Despite the team’s best efforts, this has resulted in a deterioration in production quality and volumes in the first quarter of 2022,” said Paul Einarson, Chief Executive Officer of CEZinc, the Fund’s Manager.
“The Processing Facility team continues to work diligently to stabilize operations and has realized progress in improving operating conditions, a careful and gradual process given the complexity of smelting operations. In what remains a complex environment, achieving operational reliability improvements will be critical. We look forward to benefitting from our strategic expansion projects once these operational challenges are fully resolved,” added Mr. Einarson.
Zinc metal production in the first quarter of 2022 is expected to be 57,588 tonnes, compared to 66,345 tonnes in the first quarter of 2021. Zinc metal sales are expected to be 56,826 tonnes, compared to 66,277 tonnes in the first quarter of 2021. As a result, the Fund is revising its annual production and sales target to between 255,000 and 265,000 tonnes of zinc, from its previously disclosed target of between 270,000 to 280,000 tonnes for 2022.
The Fund expects to complete the commission of its strategic expansion projects, comprised of the installation of additional belt filters and related equipment to increase the Processing Facility’s filtration capacity, and two additional cooling towers in the cell house to improve cooling capacity in the summer months, in the second quarter of 2022.
2022 First Quarter Results