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Yahoo
a day ago
- Business
- Yahoo
Burgundy Diamond halts operations at Canada mine amid low diamond prices
Australian mining company Burgundy Diamond Mines has suspended operations at its Point Lake diamond mine in Canada, attributing the decision to record-low diamond prices. The Point Lake site, part of the company's Ekati mine in the Northwest Territories (NWT), will see several hundred employees and contractors laid off as a result. Burgundy Diamonds corporate communications manager Ariella Calin said: "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.' Despite the suspension at Point Lake, mining operations at the Misery underground mine remain unaffected, with production rates showing significant improvement in recent months through improved mining techniques and equipment. Burgundy is expected to provide a quarterly production update towards the end of July. The company said in a statement: 'The company will continue to maintain Point Lake to ensure that it can quickly and efficiently restart operations, should market conditions allow.' The global dip in diamond prices has led to reduced profitability across the sector, prompting companies such as Rio Tinto and Anglo American to consider closures and spin-offs of their diamond businesses. Rio Tinto plans to close its Diavik mine by early 2026, while Anglo American, owner of De Beers, is exploring the option to divest its entire diamond segment. In May, De Beers Group announced plans to discontinue its lab-grown diamond jewellery brand Lightbox and focus on natural diamonds in the jewellery sector. In response to the challenging market conditions, Burgundy has ceased trading on the Australian Stock Exchange pending further operational updates, reported Reuters. The company is prioritising the mining and processing of higher-margin ore at Ekati to reduce costs. As the productive life of Canada's diamond mines draws to a close, the NWT community is advocating for infrastructure improvements and new projects to mitigate future job losses. NWT & Nunavut Chamber of Mines executive director Karen D. Costello said: "The Northern mining industry has been around for over 90 years. "And it has been recognised that we do have incredible mineral potential, but we do need robust exploration to make the discoveries, and we do need the known projects to advance to become the next generation of mines." "Burgundy Diamond halts operations at Canada mine amid low diamond prices" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Burgundy Diamonds lays off employees in Canada as diamond prices tank
By Divya Rajagopal TORONTO (Reuters) -Australian miner Burgundy Diamond Mines laid off several hundred employees and contractors and suspended operations at its Point Lake diamond mine in Canada due to record-low diamond prices, a company spokesperson said on Thursday. The Point Lake site in Canada's Northwest Territories is part of the company's Ekati mine. Burgundy said its other site in the remote Arctic region is still operating. "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," said Ariella Calin, corporate communications manager at Burgundy Diamonds. With global diamond prices at record lows, the Point Lake project is proving to be sub-economic. Mining operations at the Misery underground mine, Calin said, are unaffected. Northwest Territories is home to three diamond mines: Diavik, owned by Rio Tinto, De Beers' Gahcho Kue; and Burgundy's Ekati. As falling diamond sales globally have reduced profitability, companies are trying to stay afloat or are suspending their operations. Rio Tinto has planned a closure of its Diavik mine in early 2026. De Beers owner Anglo American is looking to spin off its entire diamond business. Burgundy halted trading at the Australian Stock Exchange (ASX) pending an operational update from the company. Production rates at Misery have significantly improved in recent months, and Burgundy will provide a quarterly production update toward the end of July, Calin said. As Canada's diamond mines reach the end of their productive life, the NWT community has been pitching for projects and asking for infrastructure improvements to replace future job losses. "The Northern mining industry has been around for over 90 years," said Karen D. Costello, executive director at NWT & Nunavut Chamber of Mines. "And it has been recognized that we do have incredible mineral potential, but we do need robust exploration to make the discoveries, and we do need the known projects to advance to become the next generation of minds." (Divya Rajagopal in Toronto; Editing by Caroline Stauffer and Richard Chang)
CBC
4 days ago
- Business
- CBC
Several hundred people laid off after open pit mining abruptly stops at N.W.T.'s Ekati diamond mine
Burgundy Diamond Mines says it's laid off several hundred employees and contractors and has temporarily stopped open pit mining at Point Lake — one of its two active operations at the Ekati Diamond Mine. In an emailed statement to CBC News on Wednesday, Ariella Calin, a communications manager for the company, said mining the Point Lake kimberlite pipe had become "sub-economic" because diamond prices have reached record lows. Calin said Burgundy will continue to maintain the open pit so that operations can start again quickly if the economic situation gets better. She also said mining at the Misery underground mine, about two kilometres away from Point Lake, will continue and that its "production rates have significantly improved in recent months" with new mining techniques and equipment. Ekati is one of the N.W.T.'s three diamond mines, which are all approaching closure — raising fears for how the N.W.T.'s economy will pivot once they close, and what it will mean for Indigenous governments, as the mines provide revenue and jobs for many communities. All three mines reported millions of dollars in losses in 2024, with Ekati seeing a $94.7-million loss.
