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De Beers to Cease Mining at Canada’s Snap Lake, Lays Off 434
Dec 6, 2015 7:38 AM
By Rapaport News
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RAPAPORT... De Beers is to immediately cease mining at its Snap Lake
mine in Canada. The move comes following a review of its operations,
particularly in light of current market conditions.
The company has put the
mine on “care and maintenance” and expects this status to last for one to nine
months. The decision has resulted in 434 employees being laid off.
The company will evaluate market conditions over the next
year to determine whether the resources at the mine make it viable, according
to a De Beers statement on December 4, 2015. Environmental monitoring and other
work required under the terms of the mine’s permits will continue in the
meantime.
Work involved in carrying out the suspension will require
approximately 120 employees and the care and maintenance itself will keep 70
workers in employment. The company has transferred 41 employees to another of
its Canadian mines, the Gahcho Kué Project, and there’s potential to move
another 60 next year.
“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 Kim Truter, De Beers Canada’s chief
executive officer.
The Snap Lake mine, located in
the Northwest Territories, opened
in July 2008 and is Canada’s only fully
underground diamond mine, according to the group.
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Tags:
Canada, De Beers, Rapaport News, Snap Lake
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