Rio Tinto offers early termination to Diavik employees to save costs

Rio Tinto (ASX: RIO) is offering early termination for employees at its Diavik diamond mine as part of the company’s efforts to save costs ahead of the mine’s closure in 2026, the Australian miner told jewelry news agency Rapaport.

Located in Canada’s Northwest Territories, about 200 km south of the Arctic Circle, Diavik has become an integral part of the NWT economy, employing over 1,000 people and producing an average of 6-7 million carats of gem-quality diamonds annually.

Since entering production in 2003, the mine has outputted roughly 90 million carats of rough diamonds, making it one of the largest in Canada.

The offer of early termination to Diavik employees, says Rio Tinto, is a response to the challenges currently facing the diamond industry as the mine approaches the end of its life cycle.

“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,” Matthew Breen, chief operating officer at Diavik, told Rapaport.

While the diamond mine is slated to close in the first quarter of 2026, Rio previously indicated that some workers will remain at the mine site until 2029 to support the closure and reclamation process.

Elsewhere in NWT, De Beers’ Gahcho Kué mine, about 280 km away from Yellowknife, is expected to follow Diavik and close around 2030.

A report earlier this year shared by research firm Impact Economics estimates that these NWT diamond mine closures could result in 1,500 jobs being lost and about 1,100 residents leaving the territory.