Dominion Diamond axes 51 jobs at Diavik mine

Dominion Diamond (TSX, NYSE:DDC) has cut 51 jobs at its iconic Diavik diamond mine in Canada's Northwest Territories, due to what the company called “challenging” market conditions.

The diamond producer, which early this month announced it was moving its headquarters from Yellownife to Calgary as part of a cost-cutting move, told CBC News the layoffs impacted employees across the business.

Like most diamond producers Dominion, which owns 40% of Diavik with Rio Tinto holding the remaining 60%, has been hit by weak global diamond prices. Sudden challenges, including the death of the company’s founder, Robert Gannicott, and a fire its Ekati Mine that suspended processing and cost the miner around $20 million in repairs, have also have an impact.

Diavik is located in the Northwest Territories, 300 kilometres northeast of Yellowknife, close to Ekati, which Dominion bought from BHP Billiton (ASX:BHP) in 2013.

The mine is expected to run out of diamonds in 2024, even with the development of a fourth pipe, known as A21, which is expected to begin production in 2018.

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