De Beers has initiated discussions to reduce approximately 5% of its workforce at the Gahcho Kué diamond mine in Canada’s Northwest Territories following a joint decision to pause development of the Tuzo expansion project.

The move comes after De Beers and its joint-venture partner, Mountain Province Diamonds, opted to temporarily halt the Tuzo pit extension while conducting a financial assessment in response to ongoing industry challenges. The pause has triggered a review of operational requirements, leading to conversations around potential redundancies.

A company spokesperson stated that internal evaluations are underway to determine appropriate staffing levels. Discussions have begun with a limited number of employees, with efforts focused on minimizing the impact on workers residing in the Northwest Territories.

De Beers holds a 51% stake in the project, while Mountain Province owns the remaining 49%. The mine currently employs between 500 and 1,000 workers, including contractors.

The spokesperson emphasized that the decision was made carefully, acknowledging the strong safety and operational performance delivered by the team over the past two years. The company will continue to assess market conditions and operational needs as it reviews future production plans at Gahcho Kué.

Originally, the Tuzo expansion was expected to extend the mine’s life to 2031. With the project now on hold, the timeline for the mine’s long-term future remains uncertain.