You are here: Home » Companies » News
Business Standard

De Beers shuts Canada mine due to adverse market condition

Retrenches 60% employees; to review decision in 2016

Dilip Kumar Jha  |  Mumbai 

Community spirit helps Surat diamonds go global

De Beers, one of the world’s largest diamond miners, has shut its Snap Lake mine in Canada because of adverse market conditions. The company said the mine was closed for “care and maintenance”.

The mine opened in July 2008 and was Canada’s only fully underground diamond mine. The mine produced 1.2 million carats last year and has a life of around 40 years. Snap Lake was De Beers’ first diamond mine outside Africa.

“De Beers has placed its Snap Lake diamond mine on ‘care and maintenance’. The decision follows a review of the mine’s operation in light of current market conditions,” said Kim Truter, chief executive officer of De Beers Canada.

De Beers has retrenched 60 per cent of the mine workers. “We will evaluate market conditions over the next year to determine the potential of the ore body as a viable mine,” said Truter. Suspension of work is expected to last between one and nine months during which environmental monitoring and work required under the mine’s permits will continue.

“The men and women at Snap Lake have put enormous effort into his 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,” Truter clarified.

De Beers produces 32 million carats of rough diamonds a year. The slowdown in China and low demand in India have hurt global jewellery sales. India, which processes over 90 per cent of the world's rough diamonds, faced a 25 per cent decline in jewellery exports in October.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, December 05 2015. 21:56 IST