De Beers Canada shutting down Snap Lake mine for 10 weeks

by eyetee | January 19, 2009 12:00 am

SB_snap_aerial — De Beers is cutting back expenses at its Snap Lake mine and shutting down operations for 10 weeks in 2009.

About 400 workers at the Snap Lake diamond mine will take a forced leave later this year as De Beers Canada shuts down operations to conserve cash.

Work at the mine—which is located about 220 km northeast of Yellowknife—will halt for six weeks in the summer and four weeks at the end of 2009.

Blaming the global economic downturn and a decline in demand for rough diamonds, De Beers says it is tightening its belt and cutting back production at several locations. The new Victor mine in Northern Ontario will also be affected.

According to numerous news reports, the company says employees will be given the option to have their salary adjusted so that they will keep receiving cheques while Snap Lake is closed. Another option is to use their vacation time.

This is the second time De Beers Canada has cut back on work at the mine. Last November, the company laid off 105 contract workers.

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