Gahcho Kué diamond mine operator De Beers says it is talking to about five percent of the mine’s employees “regarding redundancies.”
A project that would have extended the mine’s life from 2027 to 2030 – known as the Tuzo extension – was placed on pause earlier this month.
Production this year is not expected to be affected, the mine said at the time, but its future beyond 2026 is uncertain.
The mine – one of three diamond mines active in the NWT – is now understood to be working on a new plan for the remainder of its life.
“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,” a De Beers spokesperson stated on Friday.
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“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.
“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.”
About 850 people work at Gahcho Kué according to recent figures provided by mine management, including 600 staff and 250 contractors. De Beers co-owns the mine with Mountain Province Diamonds.
Of the other two active mines in the NWT, Diavik ceases operations next month and the Ekati mine, despite a nine-figure federal loan, is not guaranteed to recover from its own financial troubles.
Tariffs imposed by the United States on India may ease, which would be a shaft of light for the industry (as India is a key thoroughfare between mines and the market), but the global geopolitical situation, the broader impact of tariffs and the rise of cheaper lab-grown diamonds have suppressed the natural diamond market for 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,” De Beers stated on Friday.
