De Beers is ceasing production at its Snap Lake mine in Canada’s Northwest Territories, putting it on care and maintenance and laying off 434 employees.
The company says the decision comes after a review of the mine’s operation and current market conditions. Â
“The men and women at Snap Lake have put enormous effort into this challenging ore body over many years, but even the gains made this year are not enough to overcome the market conditions and put us in a profitable position,” said De Beers Canada CEO Kim Truter.
“To see such a strong commitment to the mine makes today’s announcement that much more difficult.”
Work has begun to suspend production, which is expected to take one to nine months. Suspension work will require approximately 120 employees, while 70 workers will be needed for the care and maintenance phase. Forty-one others have been moved to De Beers’ Gahcho Kué Project, also in the Northwest Territories, with the potential for another 60 to be transferred at some point next year.
The company says it will evaluate market conditions over the next year to determine the potential of the ore body as a viable mine. During the care and maintenance period, environmental monitoring and work required under the mine’s permits will continue. Â Â
Snap Lake officially opened in July 2008 and is Canada’s only fully underground diamond mine.
