Gahcho Kué food contract terminated days after mine opens

Just days after the grand opening of Gahcho Kué Mine, a key contractor on site has terminated its contract with De Beers.

ESS Compass Group provides culinary and cleaning services at the fly-in diamond mine, located 280 kilometers northeast of Yellowknife.

On Monday De Beers confirmed, by email, that ESS is exiting its contract with De Beers, citing "commercial reasons."

"Their contract has an exit clause, which is now in effect. It allows for an exit within a time period of up to a maximum 120 days," says De Beers.

The contractor employs roughly 60 people who work at Gahcho Kué.

The union representing those workers said in the weeks leading up to the mine's opening, they were discussing strike action over low wages.

"I got quite a few calls over the weekend and everyone is kind of happy that ESS is going, " says Marcel Dionne who is an advisor for the Teamsters Local 213, and was involved in collective agreement negotiations between the workers and ESS.

"They don't seem to have any worry about being able to remain at the camp if they wish to do so with the new employer," said Dione, adding that talk of strike action is over for now.

De Beers says it will immediately begin looking for another contractor. ESS will continue to offer service at the mine until January 2017, the latest.

ESS confirmed the termination notice in an email to CBC, but did not elaborate.