SOMBA K'E/YELLOWKNIFE - De Beers Canada announced yesterday that an increase in diamond production at the Snap Lake Diamond Mine will create 175 new jobs by the end of 2010.

De Beers Canada, which is ramping up production at its Snap Lake diamond mine after cancelling its winter shutdown, is hiring an additional 175 workers, president and CEO Jim Gowans stated in a press release Thursday. - Guy Quenneville/NNSL photo

That's a dramatic turnaround from earlier this year. Responding to a reduced demand for diamonds worldwide, De Beers shut down Snap Lake from July 22 to Aug. 26 this year, with only 60 workers remaining on site per rotation. As of October, Snap Lake employed 584 direct De Beers employees and contract workers. Of those employees, 251 lived in the NWT.

The company also reduced its rate of production earlier this year to align with slumping demand.

More recently, as a result of positive trends in the diamond market, De Beers cancelled another month-long shutdown that was to begin this week, though the mine's rate of production in October was still "significantly below the mine's capability, which is 1.5 million carats per year," Cathie Bolstad, a spokesperson for the company, told Yellowknifer in October.

Bolstad could not be reached for comment on Thursday.

In 2008, the mine, which officially began commercial production halfway through the year, produced 926,000 carats, accounting for 6.9 per cent of diamonds produced in the NWT that year.

According to Thursday's press release, by the end of 2010, the mine will employ 634, although it's unclear whether that number includes contract workers.

In addition to the new diamond production jobs, an additional 30 construction positions will be created between February and October 2010, when construction of a permanent accommodation complex for employees - put on hold due to the economic slowdown - is set to resume.

"Our decision to increase production is consistent with our business strategy to align production with global demand," said Jim Gowans, president and CEO of De Beers Canada, in the press release. "Although our industry might not see the same sales levels in the next few years that we enjoyed in 2007 and early 2008, we anticipate a steady growth in demand over the next three or four years, and the long term looks bright."

"Good news!" exclaimed Mike Vaydik, general manager of the NWT & Nunavut Chamber of Mines, in an interview with Yellowknifer. "Obviously they've seen the recovery in the diamond market and they're reacting to it. I think that's positive news anywhere."

De Beers' announcement comes a month after Diavik Diamond Mines Inc. announced it is hiring 150 people for underground production at Diavik, set to begin in the first quarter of next year.