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Canada’s Diavik mine axes 51 jobs

Diavik is located in the North West Territories, 300 kilometres northeast of Yellowknife.(Image courtesy of Natural Resources Canada)

Diavik Diamond Mines, the company that runs the iconic operation of the same name in Canada’s Northwest Territories, has axed 51 jobs due to what the firm called “challenging” market conditions, CBC News reported.

Diavik mine, owned by Dominion Diamond (TSX, NYSE:DDC) with a 40% stake and Rio Tinto (ASX, LON:RIO) holding the remaining 60%, has been affected by mayor changes as of late.

Early this month, Dominion announced it was moving its headquarters from Yellownife to Calgary as part of a cost-cutting move that would leave about 100 unemployed, but that will save the firm $19 million a year once the relocation is completed by mid-2017.

Diavik is located in the Northwest Territories, 300 kilometres northeast of Yellowknife, close to Ekati, which Dominion bought from BHP Billiton (ASX:BHP) in 2013.

The mine is expected to run out of diamonds in 2024, even with the development of a fourth pipe, known as A21, which is expected to begin production in 2018.