Teck Resources confirmed Thursday that its Duck Pond mine will close at the beginning of next year.
The company said it will gradually reduce its workforce in 2014.
There are about 280 people employed at the mine, and the company said they will be considered for jobs at other Teck mines in the country.
"While this closure was part of the mine's original plan, this can still be a challenging time for employees and we will be working to ensure they are well supported through this transition," said General Manager Larry Bartlett.
Teck said current deposits being mined are expected to be exhausted in the first half of 2015, after which time the mine will be permanently closed.
The company said it has set aside money to cover the $10 million cost of closing the mine and cleaning up the site.
Teck will have to receive approval from the Newfoundland and Labrador Department of Natural Resources on its mine closure plan.