Rio Tinto’s Diavik Diamond Mines Inc. has deciced to cancel a winter production shutdown at the Diavik mine in Canada’s Northwest Territories.
Earlier this year, Diavik had announced a series of actions in response to changes in market conditions, including plans for a summer and winter production shutdown. The summer shutdown was safely and successfully concluded on August 24 and rough diamond production has returned to pre shutdown levels. The winter shutdown, which has now been cancelled, was originally planned for 1 December 2009 through 11 January 2010.
“This is a positive development for all of us at Diavik and for our local communities, business partners, and government. There has been sufficient improvement in the market outlook to enable us to make this decision,” said Kim Truter, Diavik President and Chief Operating Officer.
Mr. Truter went on to say that Rio Tinto was maintaining a close watch on the diamond market and “should the market deteriorate again, future production shutdowns remain an option.”
During the summer production shutdown Diavik remained in compliance with all permits and licences. Mining and processing of ore ceased but other work, including environmental monitoring, raising of the embankment around the processed kimberlite containment area, and planned equipment maintenance occurred. Approximately 600 workers were affected but were able to use accumulated leave entitlements or access salary averaging.
The Diavik Diamond Mine, currently an open pit mine, is planning to commence underground production in early 2010. By 2012, Diavik expects open pit mining will cease at which time Diavik will become an all underground mine.
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