128 De Beers workers lose jobs at N.W.T. diamond mine

A total 218 jobs were terminated or scaled back Tuesday at De Beers Canada's Snap Lake diamond mine, 220 kilometres northeast of Yellowknife.(CBC)

Citing the worldwide economic crisis, De Beers Canada said Tuesday it is downsizing operations at its Snap Lake diamond mine in the Northwest Territories.

As a result, 128 De Beers staff members at the mine received termination notices Tuesday, while 90 contract workers were told their contracts were being suspended indefinitely or their work would be scaled back significantly.

"This is a very difficult but necessary business decision as we respond to the changing client demand for diamonds in the short term," De Beers Canada president Jim Gowans stated in a release.

"Our mines have accomplished a tremendous amount in their first year of operation and we must continue to overcome the economic challenges of today to position ourselves for a strong and long-term future in Canada."

Planned shutdowns 'no longer enough'

The latest job losses are on top of 105 contract jobs De Beers terminated at Snap Lake late last year.

Also late last year, the company announced it would shut down the mine for 10 weeks this year, six weeks in the summer and four weeks at the end of the year.

"Unfortunately, the steps that we have taken to date, including the planned shutdown for employees … are now no longer enough, and we've had to move to job losses as our last resort," De Beers spokeswoman Cathie Bolstad told CBC News late Tuesday.

The Snap Lake mine, about 220 kilometres northeast of Yellowknife, began production last year.

Bolstad said that at full capacity, the mine employs 662 people, about 440 of whom are De Beers employees. The rest are contractors.

Miners face bulk of job losses

As the mine is currently at 60 per cent capacity, Bolstad said Tuesday's terminations bring the total number of workers there to 379.

"The job losses are being experienced across all departments, but there is, of course, a heavier loss in the underground mining operation because it is production that we're scaling back," she said.

"The bulk of the job losses are being felt by our miners."

De Beers says the global economic slowdown has been challenging for all luxury goods, including diamonds. However, the company adds that diamonds are "uniquely positioned to withstand and emerge from the short-term uncertainty."