De Beers to Cut Workforce at Gahcho Kué Mine

De Beers is in talks to reduce around 5% of staff at its Gahcho Kué mine in Canada’s Northwest Territories (NWT) as it puts the Tuzo expansion on hold.

The company and joint-venture partner Mountain Province have decided to pause the Tuzo mine development while they carry out a financial assessment amid challenges facing the industry. Due to the halt, discussions regarding dismissals have commenced, a De Beers spokesperson told Rapaport News on Monday.

“Since the recent joint-venture decision to pause the Tuzo extension, we have been working internally to assess the appropriate approach to the mine’s employment needs,” said the spokesperson. “As a result of this, we have begun engaging with a small number of employees — around 5% of Gahcho Kué employees — regarding redundancies, with a focus on limiting potential impacts upon our NWT-resident workforce.”

De Beers own 51% of the project, while Mountain Province holds the remainder. The Gahcho Kué mine currently has between 500 and 1,000 employees and contract workers.

“These decisions are not being taken lightly because we have a terrific team who have delivered strong safety and operational performance, especially over the past two years. We will continue to assess operational requirements as we review how the external landscape develops and how that will affect the production plans at Gahcho Kué,” the spokesperson added.

The Tuzo pit was supposed to extend the Gahcho Kué mine’s life to 2031, but as the expansion is now on hold the future timeline is unclear.

Image: Trucks hauling ore at the Gahcho Kué mine. (Mountain Province)