De Beers' Canada unit to put Snap Lake Mine under maintenance

Diamond company De Beers' Canadian unit said it will put its Snap Lake Mine under care and maintenance in early January after failing to find a buyer for the mine.

The flooding of the underground workings of the mine will take about six to eight weeks to complete, after which Snap Lake Mine will enter a long-term phase of care and maintenance, the company said on Thursday.

De Beers said it will run a winter road programme in the first quarter next year to remove some inventory and equipment offsite and bring in fuel supplies to the site.

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Snap Lake Mine, which employs 55 people, will need about 35 people to complete the flooding project and the employees who are displaced will receive consideration for alternate placement at other De Beers facilities, the company said.

De Beers was weighing whether to sell, close, reopen or continue suspension of the money-losing Arctic mine, which was shuttered last December due to poor market conditions.