De Beers Weighing Options For Canadian Diamond Mine, Including Closure

Mining and Exploration
03/12/2015 16:45

CBC News reports that De Beers Canada is unsure of the future of its Snap Lake diamond mine, given a downturn in diamond prices and a costly water problem that required a licence amendment. The Snap Lake mine, located 220 kilometres northeast of Yellowknife, was De Beers' first diamond mine outside of Africa. It opened in 2008 and was projected to have a mine-life of 20 years. Officials with De Beers told CBC on Wednesday that they're looking at many options including shutting down the mine. "For a mining company, when you're looking at all the multiple options to respond to whatever the situation is, it's everything from, do you adjust production, do you look for cost savings, to do you put anything into a care and maintenance situation," says Tom Ormsby, director of external and corporate affairs with De Beers Canada. 

This summer, De Beers scaled back its underground drilling program at Snap Lake. In August, the company announced some of its Yellowknife and Snap Lake staff positions would move to Calgary. Ormsby wouldn't say how many jobs could be affected if the company does plan to cut back on production or close the mine. About 300 of the employees at the mine are from the N.W.T. There is no word on when a decision will be made.