Extended care and maintenance to proceed at Snap Lake Mine

Flooding of underground to begin January 2017

CALGARY, Dec. 15, 2016 /CNW/ - De Beers Canada today announced that it will begin safely flooding the underground workings of Snap Lake Mine in early January 2017, per the approved regulatory authorizations it received earlier this year. This extended care and maintenance programme will preserve the long-term viability of the ore body and reduce costs while mitigating environmental risks associated with maintaining dormant operations.

The flooding project will take approximately six to eight weeks to complete, after which Snap Lake Mine will enter a long-term phase of care and maintenance primarily focused on environmental monitoring activities. De Beers will run a winter road program in Q1 2017 to remove some inventory and equipment offsite and bring in fuel supplies to the site.

Before ultimately determining that putting Snap Lake Mine on extended care and maintenance was the most responsible and viable route forward, De Beers engaged with external parties interested in potentially acquiring the mine. However, no agreement could be reached.

Extended care and maintenance will preserve the significant diamond mineral resource in the ground in the Northwest Territories until market conditions and improved technical methods make the kimberlite more economic to operate.

Snap Lake Mine currently employs 55 people. The workforce required once the flooding project is complete will be approximately 35 people. Employees who are displaced will receive consideration for alternate placement at other De Beers facilities where skill sets and vacancies match. Where job opportunities are not immediately available, employees will receive as much notice as possible and a fair and respectful severance package that exceeds regulatory requirements.

Since December 2015, more than 100 former Snap Lake Mine employees have been placed at the new Gahcho Kué Mine in the Northwest Territories, which is operated by De Beers.

Gahcho Kué is continuing to ramp up to full production in Q1 2017 as scheduled.

About The De Beers Group of Companies

De Beers is a member of the Anglo American group. Established in 1888, De Beers is the world's leading diamond company with expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline, and is the world's largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company's operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com

SOURCE De Beers Canada Corporation

For further information: Tom Ormsby, Head of External & Corporate Affairs, De Beers Canada, Tel +1 403 930 0330 Office, Tel +1 403 464 5516 Mobile, tom.ormsby@debeersgroup.com


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