Harry Winston Says Diavik Mine Planning Shutdowns

Harry Winston Diamond Corp., the diamond producer and retailer, said temporary shutdowns and job cuts are planned at the Diavik diamond mine, in which it owns a stake.

In addition to separate six-week shutdowns, the start of diamond production from the Canadian mine’s underground tunnels will be delayed, Toronto-based Harry Winston said today in a statement. Diavik will accelerate job cuts as the underground portion of the mine moves from construction into full operation, Harry Winston said, without specifying a number.

The moves come after Kinross Gold Corp. said March 19 it would buy 19.9 percent of Harry Winston and an indirect interest in the mine. Harry Winston currently owns 40 percent of the mine and operator Rio Tinto Group (RIO), based in London, owns the remainder.

Harry Winston fell 49 cents, or 13 percent, to C$3.35 at 3:59 p.m. today in Toronto Stock Exchange trading. The shares have fallen 40 percent this year.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.

To contact the editor responsible for this story: Kevin Miller at kmiller@bloomberg.net.

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