TORONTO (miningweekly.com) - The Diavik diamond mine, in Canada's Northwest Territories, will be closed for six weeks from July 14, and then again in early December for the same period, in response to "challenging global market conditions", Harry Winston Diamond Corp said on Monday.

Harry Winston owns 40% of the Diavik mine, while diversified mining group Rio Tinto owns the balance and is the operator.

All diamond production will temporarily stop during the shutdown periods and the mine will be placed on a care-and-maintenance schedule.

The underground mine, which is being developed at Diavik, has now been deferred indefinitely, and will be placed on care-and-maintenance by the third quarter of this year, once most of the construction is completed, Harry Winston said.

Employee reductions will be "accelerated", Harry Winston said, but it did not indicate how many jobs would be cut.

Earlier this month, gold-miner Kinross announced that it would pay $104,4-million for a minority 22,5% interest in the firm that holds Harry Winston's share in the Diavik mine joint venture, and would buy 15,2-million Harry Winston shares in a private placement, at $3 a share.

Harry Winston, formerly known as Aber Diamonds, bought high-end jewellery retailer Harry Winston in 2006.

The company is scheduled to publish results for the three months and year ended January 31 on Thursday.

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