Australian mining company Burgundy Diamond Mines has halted operations at its Point Lake diamond mine in Northern Canada, citing record-low diamond prices.
The Point Lake mine is part of the company’s Ekati mine in the Northwest Territories (NWT). The move will see several hundred employees and contractors laid off as a result.
Burgundy Diamonds corporate communications manager Ariella Calin said, as quoted by Mining-technology : “Burgundy Diamond Mines made the decision to temporarily suspend open-pit mining at Point Lake, which constitutes a shift from surface mining operations in the short term.”
However, the suspension at Point Lake will not impact the Misery underground mine, with production rates showing significant improvement in recent months. Burgundy will also maintain its Ekati mine in order to ensure that it can quickly restart operations.
The global decrease in diamond prices has led to reduced profitability, forcing companies such as Rio Tinto and Anglo American to consider closures and spin-offs of their diamond mines, according to Mining-technology.
