Ekati diamond mine in the Northwest Territories. Credit: (Credit: Arctic Canadian Diamond.)
Burgundy Diamond Mines (ASX: BDM), has halted open pit operations at Point Lake within its Ekati diamond mine in Canada’s Northwest Territories, resulting in the layoff of hundreds of workers and contractors.
The company, which went on a trading halt on Wednesday, cited poor market conditions as the reason for halting operations. Communications manager Ariella Calin said in an emailed statement that the ongoing downturn in the diamond market has rendered the Point Lake pit “sub-economic.”
“The company has scaled its operating model to support a viable adjusted mine plan without near term surface operations,” Calin said, adding that Point Lake will be maintained to allow for a rapid restart should market conditions improve.
Operations will continue at Ekati’s Misery underground mine, located roughly…
