De Beers cuts the red ribbon on Canadian diamond mines

by eyetee | August 5, 2008 12:00 am

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The Snap Lake and Victor mines are officially open for business.

After several years and an investment of more than $1 billion each, De Beers launched Canada’s fourth and fifth diamond mines late last month.

It was a day of firsts for the South Africa-based company, which opened not only two mines at the same time, but its first outside its home continent.

“It is gratifying to see not only the contribution these mines will make to De Beers, but the contribution they are already making to the communities in which they are based,” said Nicky Oppenheimer, chair of the De Beers Group.

The Snap Lake and Victor Mines, located in the Northwest Territories and northern Ontario, respectively, are expected to produce two million carats a year. Snap Lake is Canada’s first fully underground diamond mine, employing 560 people during production and with an estimated lifespan of nearly 20 years.

Located near the Attawapiskat First Nation reserve, the Victor Mine is expected to produce 600,000 carats a year over its 12-year lifespan. The open-pit site is one of 18 kimberlite pipes discovered on the property, 16 of which are diamondiferous.

Both projects have seen the formation of impact benefit agreements (IBAs) with local First Nations communities to provide training and jobs.

“We have built strong relationships with local communities, and upheld the highest environmental standards. I’m very proud of what we have accomplished,” De Beers Canada president Jim Gowans said of the $650-million deals.

In July, the company announced it will offer 10 per cent of the Victor Mine’s production (by value) a year to a designated sightholder or sightholders, who would be expected to set up processing operations in Ontario.

Source URL: https://www.jewellerybusiness.com/news/de-beers-cuts-the-red-ribbon-on-canadian-diamond-mines/

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