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Rio Tinto Approves $350M A21 Development at Diavik Mine
Nov 27, 2014 5:56 AM
By Avi Krawitz
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RAPAPORT... Rio Tinto approved the development of the A21 kimberlite pipe at the Diavik mine in Canada’s Northwest Territories. The project carries an estimated cost of $350 million and will take four years to complete, Rio Tinto stated.
“Our decision to invest in the Diavik A21 project reflects our strong confidence in the diamond sector and in our ability to compete effectively in the industry,” said Alan Davies, the CEO of Rio Tinto's diamonds and minerals division.
Construction work will begin next year and the first production is planned for late 2018. Rio Tinto explained that the project will provide an important source of incremental supply at Diavik, ensuring the continuation of existing production levels. A21, which is the fourth pipe at Diavik, is located just south of Diavik’s existing mining operations.
Rio Tinto operates the Diavik mine and owns 60 percent share in the asset with Dominion Diamond Corporation holding the remainder. Having launched production in 2003, the mine shifted to underground operations in 2012. Total production grew 10 percent year on year to 5.688 million carats in the first nine months of 2014.
Marc Cameron, the president of Diavik Diamond Mines Inc., said, “This is great news for Diavik, but also for the local communities in which we operate where we are committed to delivering economic and social benefits that will endure beyond the life of the Diavik mine.”
Diavik’s ore reserves will be formally updated in the first quarter of 2015, while the current mine plan has production ending in 2023, Rio Tinto stated.
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Tags:
Avi Krawitz, diamonds, Diavik, Dominion Diamond Corp, Rapaport, Rio Tinto
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