The Diavik diamond mine in the Northwest Territories is on the verge of hiring 150 new employees as it starts moving its operations underground in the new year.

The mine will begin phasing out its current open-pit mining operations and building its underground mining project early in the new year, with the goal of being entirely underground by 2012.

The two-year transition from open pit to underground will cost $800 million and require building everything from underground tunnels to expanding the mine's water treatment and power plants above ground.

"So there's a lot of work involved on [the] surface and underground. Part of that is hiring," Diavik spokesman Doug Ashbury told CBC News on Wednesday.

Northern, aboriginal workers targeted

Ashbury said Diavik promises to make northern residents and aboriginal people an important part of the upcoming round of hiring.

Diavik will also target people who want to gain valuable mining experience: Ashbury said 25 of the 150 new jobs will be entry-level positions, and training will be offered to those who are starting out.

The beginner workers start at what the mine calls the "miner five" level and will work their way up towards "miner one" status, he added.

"As the 'miner five' entry level individual gets more experience, that opens up a new opportunity for another individual," Ashbury said.

"So over time, over two to three years, our plan will have our northern workforce numbers get stronger and stronger."

Recession delayed plans

The Diavik diamond mine is located in the Lac de Gras area, about 300 kilometres northeast of Yellowknife. One of three diamond mines in the N.W.T., it went into production in 2003.

Diavik, a division of Rio Tinto PLC, owns 60 per cent of the Diavik site, with the remainder held by Harry Winston.

Mine officials had planned to begin the transition from open-pit mining to underground mining last year, but the global recession held those plans back.

Ashbury said the company cannot wait any longer given the open pits are nearing the end of their lifespans.

The mine will operate both the open pit and underground mines over the two-year transition period.