Diavik nears startup

Construction of the Diavik diamond mine, in the Northwest Territories, is expected to be close to completion by year-end.

London-based Rio Tinto (RTP-N) and its Canadian partner, Aber Diamond (ABZ-T), will have spent $1.3 billion building the operation, which consists of an open-pit mine, kimberlite processing plant and related infrastructure.

The mine began processing kimberlite ore from the A-154 South pipe on an intermittent basis in late November. The first diamonds liberated and recovered have been delivered to Yellowknife, 300 km to the south, for cleaning and removal of non-diamond heavy mineral particles.

Rio Tinto is the operator, and owns a 60% interest in the mine through its wholly owned subsidiary, Diavik Diamond Mines. Aber owns the remaining 40%. The mine plan calls for a 2-year ramp-up period, after which time annual kimberlite processing is expected to reach 1.5 million tonnes, with diamond production averaging 6 million carats per year. The mine plan will see four kimberlite pipes deliver 107 million carats of diamonds averaging a value of US$62 per carat over a span of 20 years.

Proven and probable kimberlite reserves are estimated at 27.1 million tonnes grading 3.9 carats per tonne.