Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Massive layoffs are expected before the end of the month at Diavik, in Canada’s Northwest Territories, as the diamond mine is set to close its open-pit section.
According to CBC News over 1,000 people currently work at Diavik, which is located about 300 kilometres northeast of Yellowknife, close to BHP Billiton’s Ekati — Canada’s oldest diamond mine.
Underground mining began at Diavik in 2010, the plan was to transition the mine and eventually close the open pit.
Toronto-based jeweller Harry Winston Diamond (NYSE:HWD), which is looking to become the sole owner of Diavik, has said it expects to begin another open pit in 2016.
Last August Harry Winston Diamond said the mine has another 11 years to go and a current net value of $2.6 billion.
The company has also said that Diavik will have a total capital cost of $955 million until the end of its life.
Photo Courtesy of The Diavik Diamond Mine.
