Last month we speculated that ORC looked to be short on cash and had exhausted its borrowing capacity. Today the company laid off “14 full-time and 17 temporary employees”. New CEO, Wayne Knott, blamed the layoffs on diminishing global demand for chromite sands.

ORC was granted a two year extension of the enterprise zone property tax exemptions in 2010. The exemptions are contingent upon jobs and higher than average wages. In other words, the taxpayer picks up part of the tab for companies putting people to work within a certain geographic area, a way of socializing the risk while privatizing the profits.

More than ever, the county should take a wait and see attitude before signing any mineral leases with Coos County especially if the company plans to use them as collateral for more loans.