Rio Tinto is offering early termination options to employees at its Diavik diamond mine as part of its cost-saving measures in anticipation of the mine’s closure in 2026, according to a report by jewelry news agency Rapaport.
Situated in Canada’s Northwest Territories, approximately 200 km south of the Arctic Circle, Diavik has been a vital contributor to the local economy, employing over 1,000 individuals and producing an average of 6-7 million carats of gem-quality diamonds each year. Since it began operations in 2003, the mine has yielded around 90 million carats of rough diamonds, making it one of Canada’s largest diamond producers.
Matthew Breen, chief operating officer at Diavik, stated, “I can confirm that Diavik is looking at voluntary separation as part of our efforts to manage costs and rightsize our business given the relatively short runway to Diavik’s planned closure.” This move comes as the diamond industry faces various challenges with the mine nearing the end of its operational life.
Although Diavik is scheduled to close in the first quarter of 2026, Rio Tinto has indicated that some employees will remain on-site until 2029 to assist with the closure and reclamation processes. In the Northwest Territories, De Beers’ Gahcho Kué mine, located about 280 km from Yellowknife, is expected to follow suit and close around 2030. A report released earlier this year by research firm Impact Economics estimated that these closures could lead to the loss of 1,500 jobs and result in approximately 1,100 residents leaving the territory.
