The CEO of Tara Mines in Co Meath has said the decision to temporarily close and lay off up 650 workers was done in the face of “tremendous unsustainable losses”.

The mine will be placed under care and maintenance after winding down operations.

Gunnar Nystrom said Tuesday’s decision was a necessity to safeguard the future of the company and stem the cash flow out of the company.

Speaking to RTE’s Morning Ireland on Wednesday, Mr Nystrom said the closure was brought about by a “perfect storm” of four factors; falling zinc prices, electricity prices, inflation, and operational issues.

“The zinc market seems to be very volatile at the moment.”

The company is owned by Swedish multinational Boliden which also holds zinc mines there.

“The decision that was made last night was purely Tara Mines alone.”

Mr Nystrom said Tara Mines had been a very high-cost operation and more expensive to run than its other mines.

Minister for Enterprise Simon Coveney said his department immediately sought a meeting with the company following the announcement.

Speaking on the same programme, he said the board of directors are convinced it will be a temporary closure.

“But look, this is very, very unwelcome news, and it really came unexpectedly.”

Mr Coveney said the closure is a “big deal” and affects up to 2,000 people in the surrounding area of Navan.

His department has been engaging with the mine for months over the pressures it has been experiencing.

He was due to meet the company in Sweden next week.

Mr Coveney said the combination of those four factors effectively mean that the company is now projecting a loss of approximately 100 million euro this year.

“That projection was what triggered the board to make this drastic decision to temporarily close the mine for now.”

He said it will take about a month to shut down operations in the mine before it is put under care and maintenance.

“We have a number of weeks now to work with the trade unions, to work with the company and the workers to try and be as supportive as we can and to try to get an understanding as to what’s needed for the operations to reopen as quickly as possible.”

SIPTU divisional organiser, Adrian Kane, has said that workers at Tara Mines are shocked and disappointed following the announcement by the company.

He said: “SIPTU members at Tara Mines are deeply disappointed at the news that 650 workers are to be laid off within the next few weeks and the manner by which it was communicated to them.

“Our members are also concerned that they were not informed in advance of this announcement of temporary lay-offs, without pay, by the company.

“Tara Mines is a critical part of both the local and national economy and we will be engaging with management to discuss how the effects of these lay-offs can be mitigated.”