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Hello!? DeBeers Mining Comes To Canada.
DeBeers is going truly global.
Press reports indicate that De Beers Canada Inc., has filed an application with the Mackenzie Valley Land and Water Board for permits to construct and operate a mine at Gahcho Kue, located in the Northwest Territories, approximately 300 kilometers northeast of Yellowknife.
The Gahcho Kue project is a joint venture between De Beers Canada (51 percent,) Mountain Province Diamonds Inc., (44 percent,) and Camphor Ventures (5 percent.) The project is located 90 kilometers east of Snap Lake, De Beers first diamond mine in Canada which is currently under construction.
With an estimated resource of 31 million tons, the Gahcho Kue project will be an open pit mine. The construction of the mine is expected to cost an estimated $706 million and will employ up to 600 people during the peak of the construction and close to 400 people durinig the operations phase of the mine.
The mine is expected to have a life of 20 years and yield an average of three million carats annually for the first 15 years.
“Advancing this project is consistent with our strategy of maintaining a pipeline of projects to meet increasing global demand as well as contributing to the sustainability of the Canadian diamond industry,” said Richard Molyneux, CEO of De Beers Canada.
“Gahcho Kué is evidence of the importance we attach to partnerships with Canadian exploration companies as a winning formula for growing the diamond industry in this country.”
The company anticipates that the project application will be referred to the Mackenzie Valley Environmental Impact Review Board for an environmental assessment.
De Beers is investing approximately $2 billion over the next three years in the Canadian diamond industry. Snap Lake is scheduled to open in 2007. The Victor mine will commence construction early in 2006 and will be in production by the end of 2008.
Global indeed! Prediction here: Look for the GIA (Gemological Institute of America) to open offices in a major Canadian city (Toronto?) within the next few years.
