21 Sep 2016

Gahcho Kue, a new mine owned jointly by De Beers and Mountain Province Diamonds, is expected to produce 54 million carats of rough diamonds over its lifespan.  

The new mine in North West Territories (NWT), Canada, was officially opened on Tuesday and has been described as the world’s largest new mine in the last 13 years.
A press release from De Beers states that the Gahcho Kue mine remains on track to reach full commercial operation in the first quarter of 2017.

Comprising of three open pits, it will have 530 full-time employees with the majority working a two-week rotation.

The press release states that the mine was opened officially by De Beers Group chairman and Anglo American chief executive, Mr Mark Cutifani, De Beers Group CEO, Mr Bruce Cleaver, De Beers Canada CEO, Mr Kim Truter, Mountain Province Diamonds CEO, Mr Patrick Evans and representatives of First Nations and Metis communities in the North West Territories.

De Beers states that Canada is the world’s third largest diamond producer by value and the fifth largest by volume.

Underpinned by a US$1 billion capital investment, the development of Gahcho Kue between 2006 and 2015 has already provided a C$440 million boost to the NWT economy.
It says more than 90 per cent of Gahcho Kue’s economic impact will be delivered once the mine becomes fully operational, equivalent to a further C5.3 billion in Gross Value

Added (GVA) to the NWT. The release says the mine supported more than 2 700 jobs in 2015, with employment at the site representing more than 10 per cent of employment in the NWT extractive industries.

Mr Cleaver is quoted saying “as millions of new consumers enter the middle class in the coming years, consumer demand for diamond jewellry is set to see continued medium to long-term growth. “I’m therefore delighted with the official opening of Gahcho Kue, our largest ever mine outside southern Africa, as it will help to meet this increasing demand.”

CEO of De Beers Canada said “our employees, our business partners and our community partners went above and beyond to deliver this world asset ahead of schedule and under budget. All those who played a part from discovery through permitting, construction, commissioning and now first production can be proud to have done so in a safe and environmentally sustainable way.”

Mountain Province Diamonds CEO, Mr Patrick Evans said “today marks the culmination of more than 21 years of commitment and support from out stakeholders without which today would not have been possible. I also recognise the support of our lending group and joint venture partner who helped us get over the finish line.

As production and cash flows commence, our singular focus is to repay our shareholders and business partners and to operate this diamond mine for the benefit of our employees and the communities they call home.”

De Beers, a member of the Anglo American Group, established in 1888, is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds.

It is the world’s largest diamond producer by value with mining operations in Canada, Namibia, South Africa and Botswana.
The Botswana government has a 15 per cent stake in De Beers. Ends