Anglo American’s Gahcho Kué to provide C$6.7bn boost to Canadian economy

VANCOUVER (miningweekly.com) – A new report by professional services firm EY has calculated that the world’s largest new diamond mine under construction in Canada’s Northwest Territories (NWT), Gahcho Kué, will provide a C$6.7-billion boost to the Canadian economy.

“Diamonds are perhaps one of Canada’s best kept secrets, yet, as this report shows, they contribute significantly to the economy. In the 50 years we have been in Canada, we have seen how our business can be a catalyst for delivering both economic and social value, locally, regionally and across the country,” De Beers Canada CEO Kim Truter stated.

The mine is a joint venture between Anglo American-owned De Beers Canada (51%) and Mountain Province Diamonds (49%) and is on schedule to officially open later this month.

Underpinned by a C$1-billion capital investment, the development of Gahcho Kué between 2006 and 2015 has already provided a C$440-million boost to the NWT economy, De Beers advised Thursday.

The operation is expected to produce about 54-million carats of rough diamonds over its lifetime, reinforcing Canada’s position as the world’s third largest diamond producer by value.

Almost 90% of Gahcho Kué’s economic impact will only be delivered once the mine becomes fully operational. Including its downstream supply chain impacts, the mine supported more than 2 700 jobs in 2015, with employment at the site representing more than 10% of employment in the NWT’s extractive industries.

DE BEERS IN CANADA
The report, which looks into the socioeconomic impact of 128-year-old De Beers in Canada, found that in the last decade alone, De Beers had contributed more than C$7-billion to Canada’s gross value add (GVA). Exports supported by its mining operations had injected C$4-billion in foreign currency into the Canadian economy.

De Beers has invested C$750-million in exploration across Canada since 1961, supporting almost 100 jobs each year on average. The company has been responsible for the discovery of more than 170 kimberlites to date. De Beers has been operating in Canada since it carried out its first exploration programme in 1961.

Last year, its operating mines collectively accounted for almost a third of Canada’s diamond export earnings.

Across Canada, De Beers supports 11 communities, including C$55-million in support to First Nations through impact benefit agreements between 2006 to 2015. De Beers’ investment in its Victor mine, in Ontario, underpinned the C$3.7-billion in GVA that the mine contributed to the Ontario economy over this period, while supporting an average of 1 360 full-time equivalent jobs each year.

Further, the relocation of De Beers Canada’s headquarters from Toronto to Calgary is expected to make a C$24-million-a-year contribution to Alberta’s economy, while supporting almost 160 jobs in the province.

VALUABLE DEPOSIT
The deposit has current National Instrument 43-101-compliant total probable reserves of 55.5-million carats, contained in 35.4-million tonnes grading 1.57 ct/t.

The mine life has been estimated at 12 years, during which the operation will produce about 53.4-million carats at an average yearly rate of 4.45-million carats. Standard drill and blast, and truck-and-shovel equipment and pit designs, will be used.

The average yearly output for the first three years of full production from 2017 to 2019 will be about 5.6-million carats.

Ore will be fed to a three-million-tonne-a-year processing plant, with three stages of crushing, dense-media separation and X-ray/grease diamond-recovery circuits.

Supporting infrastructure includes a 14.1 MW packaged diesel power plant, a 1 350 m gravel airstrip, a five-bay truck shop, an emulsion plant, a 40-million-litre fuel storage facility and a 432-bed accommodation/office complex.

Meanwhile, De Beers on Tuesday announced that it had sold $630-million of diamonds in the seventh sales cycle of this year. De Beers sold about $3.56-billion worth of diamonds over the first six sales cycles of this year.