Two more diamond mines open in Canada

De Beers officially opened its first two mines outside of Africa in northern Canada in late July.

The Snap Lake Mine in Northwest Territories and the Victor Mine in northern Ontario, together, are expected to produce 2 million carats a year. They are Canada's fourth and fifth diamond mines. Snap Lake is expected to employ 560 people and produce an average of 1.4 million carats a year for about 20 years.  

The Victor mine, which is close to the Attawapiskat First Nation, expects to employ 400 people and produce 600,000 carats a year for some 12 years.

"It has taken us several years and over $1 billion to build each mine," Jim Gowans, head of De Beers Canada, told reporters. Gowans has overseen the development and launch of both mines.

De Beers also said it committed to supporting the secondary diamond industry in Canada, inking agreements with the governments of the Northwest Territories and Ontario for De Beers to make available for sale 10 percent of diamonds produced from the Snap Lake Mine and Victor Mines, by value, to provincially approved manufacturers who have successfully fulfilled the Diamond Trading Co.'s client selection criteria. Ongoing exploration at another Canadian diamond mining venture, the Gahcho Kué project in the Northwest Territories, also recently yielded a 25.13-carat stone valued at $440,000, according to published reports. The diamond was part of a bulk sample from the Tuzo kimberlite.

Gahcho Kué, a joint venture between De Beers Canada and Mountain Province Diamonds, is in the permitting stage. It has yielded a number of larger stones, including 8.7-carat and 9.9-carat diamonds.

Canada is the world's third largest diamond producer, based on value, behind Botswana and Russia.