Investing.com - Financial Markets Worldwide
💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

De Beers suspends operations at Canada's Snap Lake diamond mine

Published 2015-12-04, 12:02 p/m
© Reuters. De Beers suspends operations at Canada's Snap Lake diamond mine
AAL
-
MPVD
-

TORONTO, Dec 4 (Reuters) - De Beers Canada said on Friday
that operations have been suspended at its unprofitable Snap
Lake diamond mine in the Northwest Territories, due to poor
market conditions, and it will evaluate the mine's potential
over the next year.
De Beers, which is 85 percent owned by Anglo American Plc
AAL.L and 15 percent owned by the government of Botswana, said
that work to put the underground mine on care and maintenance
has begun and is expected to last from one to nine months.
The mine, 220 kilometers (137 miles) northeast of the
territorial capital of Yellowknife, has not made any money since
it began production in 2008 and was planned to operate until
2028.
De Beers said 434 employees have been terminated and that it
will employ 120 employees for the suspension work, while ongoing
care and maintenance operations will require about 70 staff.
The company has transferred 41 employees to its Gahcho Kue
mine, now being built in the Northwest Territories with
Mountain Province Diamonds Inc MPV.TO , a 49-percent partner in
the project.
Gahcho Kue is expected to start production in late 2016 and
operate for 11 years.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.