De Beers puts Canadian diamond mine on care and maintenance
De Beers has announced it has placed its Snap Lake Mine on care and maintenance. The decision follows a review of the mine's operation, particularly in light of current market conditions. The company will evaluate market conditions over the next year to determine the potential of the ore body as a viable mine.
Work to suspend production at Snap Lake has begun, and is expected to last between one to nine months. During the care and maintenance period, environmental monitoring and work required under the mine’s permit will continue.
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Suspension work will require approximately 120 employees, while the care and maintenance phase will require approximately 70 employees. 41 employees have been transferred to De Beers’ Gahcho Kué Project as of today, with the potential for another 60 to transfer at some point in 2016. Unfortunately, 434 employees have been notified that they will not be required for the closure and maintenance work.
“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, Chief Executive of De Beers Canada.
“To see such a strong commitment to the mine makes today’s announcement that much more difficult.”
Located approximately 220kms northeast of Yellowknife in the Northwest Territories, the Snap Lake Mine officially opened in July 2008 and is Canada’s only fully underground diamond mine.
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