De Beers Canada has decided to close its operations at the Snap Lake diamond mine, leaving about 400 workers forced to take leave later this year. The move comes in the wake of cost saving efforts. Work at the mine will halt for six weeks in the summer and four weeks at the end of 2009, totally 20 weeks in the year. This is the second time work at the mine has been cut by De Beers Canada, the first being in November 2008 when the company laid off 105 contract workers.

The mining giant is believed to be slashing production at several locations. It has presented the employees with an option to either have their salary adjusted and continue receiving cheques while Snap Lake is closed, or to alternatively use their vacation time.