Rio Tinto has approved a $40 million investment to begin underground mining at the Diavik Diamond Mine in Canada’s Northwest Territories.
The plan will extend Diavik’s mine life until at least the first quarter of 2026. The mine was originally scheduled to cease production in 2025.
The first phase of underground mining will produce an estimated 1.4 million carats of rough diamonds.
Diavik plans to seek approval for the second phase of the underground project in the first half of 2024. That phase is expected to deliver an additional 0.8 million carats of rough diamonds.
“Rio Tinto’s decision to support the underground development of the A21 pipe was prefaced on compelling industry fundamentals, our proven capacity to safely develop diamond mines in extreme conditions, and a track record in competing successfully in the global diamond industry,” said Sinead Kaufman, CEO of Rio Tinto Minerals, in a statement. “This is good news for our employees, partners, suppliers, and local communities in the Northwest Territories.”
Since Diavik began operations in 2003, it has produced 100 million carats of rough diamonds. It has been owned entirely by Rio Tinto since 2021.
Another major mine in Canada’s Northwest Territories, Ekati, is scheduled to close in 2024, but its owner is also considering ways to extend the mine’s life.
(Photo courtesy of the Diavik Diamond Mine)
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