Canada is fast becoming a new global leader in diamond production. The country is now the third largest diamond producer, providing almost 15% of the world’s diamonds by value. Mountain Province is well positioned to capitalize on the growing significance of the Canadian global diamond industry.
Currently, De Beers produces approximately 50% of the world’s diamonds from its mines in Southern Africa. However, many of those mines are mature and are reaching the end of their commercial lives. De Beers allocated 40% of its global exploration budget to Canada in 2003 and 2004. De Beers plans to invest approximately US$2 billion in Canada over the next three years as it develops of three new diamond mines – its first mine outside of Africa.
Canada's diamonds have gained a worldwide reputation for their exceptional gem quality. They are also in high demand because they are produced under strict environmental and social regulations and are not used to finance war, terror and weapons as occurred in countries such as Sierra Leone, Liberia, Angola and the Democratic Republic of Congo.
De Beers is focusing on developing three main diamond projects in Canada, the first diamond mines the company has ever developed outside of Africa. These are:
- Gahcho Kué
- Snap Lake
- Victor
Snap Lake and Victor are currently under construction. They are scheduled to begin production in 2007 and 2008 respectively.
Snap Lake is located in the Northwest Territories. It is expected to cost C$636 million to construct. The mine is expected to produce 1.5 million carats annually with a 20 year lifespan.
Victor is located in Northern Ontario. The mine is expected to cost C$982 million to construct. It is expected to produce 0.6 million carats annually during its 17 year lifespan.
By contrast, Gahcho Kué is expected to cost C$825 million to construct, and produce three million carats annually for at least 20 years.
A number of other significant global mining companies have diamond projects in Canada’s Northwest Territories. These include Rio Tinto, which owns the Diavik mine with Aber, and BHP-Billiton, which owns a majority of the Ekati mine. These two producing mines together account for 11-13% of the world’s diamond supply. |
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