by Greg Klein | August 3, 2016
“On time, on budget and in a challenging environment,” as De Beers CEO Bruce Cleaver proudly noted, the world’s largest new diamond mine has begun full commissioning. The Northwest Territories open pit should reach full production in Q1 next year with average output of 4.5 million carats annually over its 13-year lifespan, according to an August 3 statement from Anglo American. Or a 12-year life, according to a same-day statement from Mountain Province Diamonds TSX:MPV.
The company owns a 49% stake in the JV, with operator De Beers holding the rest. De Beers, in turn, is held 85% by Anglo and 15% by Botswana.
Mountain Province reported two large gem-quality stones recovered over the past few days, weighing in at 12.1 carats and 24.65 carats. The company expects its first diamond sale by year-end.
Located about 280 kilometres northeast of Yellowknife, Gahcho Kué sits in the diamondiferous Lac de Gras region that also hosts Dominion Diamond’s (TSX:DDC) majority-held Ekati mine, the Rio Tinto NYSE:RIO/Dominion 60/40 JV at Diavik, and Snap Lake, De Beers’ first mine outside Africa. De Beers also operates the Victor mine in northern Ontario.
Snap Lake, a money-loser since opening in 2008, shut down last December. The company plans to flood the mine unless a buyer can be found. Output from Ekati and Diavik, however, sustained the NWT’s rank as the world’s third-largest diamond producer by value.
The two operations also sustained mining as the NWT’s largest private sector employer, despite the closures of Snap Lake and North American Tungsten’s Cantung mine in October 2015.
In Quebec’s James Bay region, meanwhile, Stornoway Diamond TSX:SWY began processing ore at its Renard project last month, slated to achieve full nameplate capacity within nine months. The company will declare commercial production after 30 days of processing ore at 60% of nameplate capacity, expected to happen by year-end. The combined open pit/underground operation would average 1.8 million carats annually for the first 10 years of its 14-year life. Average prices have been estimated at $155 per carat.