Nordic Mining has temporarily stopped mining operations to save money, the company said in a press release.
The company has struggled with financing and is at risk of going bankrupt. A stock exchange notice after an extraordinary general meeting on 13 October said the mining company could be forced into bankruptcy if it doesn't quickly secure enough money.
Board chair Kjell Roland said at the meeting that the company had made many attempts to raise more money but had not secured sufficient short-term liquidity.
Sunnfjord mayor Jenny Følling of the Centre Party (Sp) said the jobs are important. "I don't find it natural to comment while they are negotiating. I hope they find a solution," she said.
Money trouble and strong opposition from the environmental movement have marked the mining company in Vestland for years, according to NRK. The problems have now become so large that the entire company could collapse.
Based on reporting by NRK.