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A haul truck drives up a road at De Beers Canada's Snap Lake diamond mine. While Rio Tinto has cancelled the winter production shutdown for its Diavik Diamond Mine, De Beers is still planning its own shutdown this December, said spokesperson Cathie Bolstad. - Guy Quenneville/NNSL photo

De Beers holds the course on plans for Snap Lake December shutdown

Guy Quenneville
Northern News Services
Published Wednesday, September 23, 2009

SOMBA K'E/YELLOWKNIFE - Though the Diavik Diamond Mine will stay open this winter, De Beers Canada's Snap Lake diamond mine still plans to shut down production over four weeks in December, said De Beers spokesperson Cathie Bolstad.

"Our 2009 plan, which included a six-week shutdown in the summer and a four-week shutdown in December, still holds at this time," said Bolstad.

That being said, a final decision on the shutdown has yet to be made.

"We have just completed running a number of mining operation scenarios for 2010 and these, along with our recommendation for 2010, are now making their way through the approval systems within the family of companies," said Bolstad.

"We are cognizant of the winter road deadlines for fuel and supplies. Any decisions we need to make that result in a need for more fuel or supplies will be decisions made in time for those deadlines."

When diamond sales took a plunge late last year, De Beers laid off 105 contract workers at Snap Lake, including nine Yellowknife residents, as part of a effort to reduce worldwide staff by 23 per cent.

Of Snap Lake's current staff, which numbers more than 200, only 60 remained on site during the summer shutdown from July 22 to Aug. 26.

"We are keeping our employees informed regarding the 2010 strategic business plans submitted, but are asking them to stay focused on safety first and the current mine plan," said Bolstad.

Bolstad's comments come after Jim Gowans, the head of De Beers Canada, told press that growing consumer confidence has prompted the company to revisit its plans for Snap Lake.

Rio Tinto cancelled the December shutdown for Diavik last week after its second quarter earnings – while down significantly from the same point last year – pointed to upward growth in diamond sales compared to the previous quarter.

"Currently we are seeing some positive trends in the industry, but we are cautiously optimistic," said Bolstad of De Beers' own current outlook.

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