Diamond Mines in NWT

(Ekati Open Pit Mine - courtesy BHP Billiton)






In 1991 Chuck Fipke began the final chapter in his geological odyssey by staking the first claims for a large scale diamond mine in Canada's NWT with Dia Met Minerals Ltd. This sparked the NWT "diamond rush" - the largest mineral staking rush in North American history. Eventually this open pit mine was named EKATI and in 1991 was acquired for development by BHP (now BHP Billiton). This was the first mine to go into production. It is both an open-pit and underground operation. It supplies 3% of world diamonds (6% by value)

(Diavik Mine - courtesy Diavik Mining)













The next diamond mine discovered was "kimberlite pipes1" extending underneath a lake, Lac de Gras - about 300km NE of Yellowknife NWT - and was developed by Diavik Mining in a joint venture with British/Australian mining giant Rio Tinto plc. Production of diamonds began in January 2003 and Lac de Gras now produces 8 million carats annually. BHP Billiton launched a much anticipated takeover for Rio Tinto in January 2007, but was rebuffed. In February 2008 that offer was repeated as hostile and is still "under discussion".










(Underground Mining Equipment at Snap Lake - courtesy De Beers)











By 2005, a third mine was developed by former South African diamond giant De Beers at Snap Lake - an more traditional underground mine. The mine reached commercial production in Spring 2008, and is now ramping up to full production expected by 2008FYE. It will produce 1.4 million carats per year for the next 20 years.

Recently (Nov 8, 2008) Snap Lake announced that they would reduce operations by 10% in order to reduce diamond inventory's at De Beers until supply aligns with lower demand due to the global slowdown.

[Update: 2008 Nov 27, BHP Biliton as anticipated has dropped its bid for Rio Tinto due to collapsing commodity prices, global economic meltdown and onerous EU Competition Panel requirements.
Update: 2008 Nov 24, "How a Rogue Geologist Discovered a Diamond Trove in the Canadian Arctic" By Carl Hoffman WIRED Magazine Online. An excellent article. It draws alot of material from book about Fipke's discovery of Lac de Gras and sugsequent founding of Dia Met Minerals Ltd's in a JV with BHP.]

Footnotes:
1) Kimberlites is the name given to particular geological material that typifies diamond ore. Kimberly was the region in South Africa where Cecil RHODES and his company De Beers discovered the diamonds that made him immensely rich.