De Beers Idles Snap Lake Diamond Mine

After stating Thursday that it was considering closing its Northwest Territories-based Snap Lake diamond mine, the De Beers Group of Companies officially announced Friday that it’s putting the mine on care and maintenance.
According to a press release, mining will stop immediately, and the company will look at market conditions over the coming year to decide whether the operation is viable. Reports released Thursday said Snap Lake has not been profitable since it started production in 2008.
The press release also states:

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 permits will continue.
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. Regrettably, 434 employees have been notified that they will not be required for the closure and maintenance work.

Kim Truter, chief executive of De Beers Canada, commented:

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. To see such a strong commitment to the mine makes today’s announcement that much more difficult.

Click here to read the full press release from the De Beers Group of companies.