De Beers diamond mine begins commercial production

De Beers diamond mine begins commercial production

Anglo-American (LSE:AAL) subsidiary company De Beers Group has announced that production has commenced at its Gahcho Kué site, the world’s largest new diamond mine in the last 13 years.

The mine, located on the Canadian tundra in the Northwest Territories is a joint venture between De Beers and Mountain Province Diamonds, with the former holding a 51% majority stake.

The fly-in, fly-out remote mine site is expected to expected to produce approximately 54 million carats of rough diamonds over its lifetime.

Kim Truter, chief executive officer of De Beers Canada, said: “With Gahcho Kué achieving commercial production, it successfully builds on the transformation of De Beers in Canada.

“General manager Allan Rodel and his entire team are to be congratulated for completing this milestone safely and ahead of schedule during the extreme winter conditions that have taken place over the past few months.”

The mine is comprised of three open pits, employing 530 people on a full-time basis, and is expected to provide a US$5.2 billion boost to the Canadian economy.