Harry Winston Diamond Corporation announced that it will be cutting back production at the Diavik Diamond Mine in Canada’s Northwest Territory. The reductions include two production shutdowns and downsizing to a smaller workforce. The cutbacks come in response to the current challenging market conditions for diamonds.
The Diavik diamond mine is a joint venture between Harry Winston and Diavik Diamond Mines, Inc, which is a subsidiary of Rio Tinto. Harry Winston Diamond Corp owns a 40 percent stake in the mine and Rio Tinto owns a 60 percent stake.
Production at the Diavik diamond mine will be stopped twice for a period of six weeks each and the underground mine will be placed on care and maintenance by the third quarter of 2009 once the majority of its construction is complete.
“Our announcements today will preserve the quality of our assets, and position us for the future. In particular we wish to retain our core workforce and minimize any potential job losses during these actions,” said Diavik President and Chief Operating Officer, Kim Truter.
Diavik owners Harry Winston and Rio Tinto said that Diavik's long term future is in underground mining. Both, they added, remain committed to the underground mine.
Harry Winston Diamond Corp operates the luxury diamond retailer Harry Winston.
