Snap Lake Mine to be put on care and maintenance

Mining to cease immediately

TORONTO, Dec. 4, 2015 /CNW/ - The De Beers Group of Companies today announced it has placed its Snap Lake mine on care and maintenance. The decision follows a review of the mine's operation, particularly in light of current market conditions.

De Beers will evaluate market conditions over the next year to determine the potential of the ore body as a viable mine.

Work to suspend production at Snap Lake has begun, and is expected to last between one to nine months. During the care and maintenance period, environmental monitoring and work required under the mine's permits will continue.

Suspension work will require approximately 120 employees, while the care and maintenance phase will require approximately 70 employees. 41 employees have been transferred to De Beers' Gahcho Kué Project as of today, with the potential for another 60 to transfer at some point in 2016. Regrettably, 434 employees have been notified that they will not be required for the closure and maintenance work.

Kim Truter, Chief Executive of De Beers Canada, said: "The men and women at Snap Lake have put enormous effort into this challenging ore body over many years, but even the gains made this year are not enough to overcome the market conditions and put us in a profitable position. To see such a strong commitment to the mine makes today's announcement that much more difficult".

The Snap Lake Mine, located approximately 220kms northeast of Yellowknife in the Northwest Territories, officially opened in July 2008. It is Canada's only fully underground diamond mine.

ABOUT THE DE BEERS GROUP OF COMPANIES

De Beers is a member of the Anglo American group. Established in 1888, De Beers is the world's leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline, and is the world's largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company's operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com 

SOURCE De Beers Canada Corporation

Tom Ormsby, External & Corporate Affairs, De Beers Canada, Tel: [phone] Cell, [email protected]