Rio Tinto approves mining new diamond pipe at Diavik
Development of A21 kimberlite pipe expected to create average of 177 construction jobs yearly
Rio Tinto, the majority owner of N.W.T.'s Diavik diamond mine, has approved the development of a fourth diamond pipe at the mine at a cost of just under $400 million.
The Diavik mine is located 300 kilometres northeast of Yellowknife.
The company says construction to access the A21 pipe is slated to begin next year, with diamond production from the pipe expected to begin in 2018.
On average, building the 2.2-kilometre dike to access the underwater pipe will require 177 construction workers per year.
New production jobs will eventually need to be filled, too.
"Once we move into open pit operations, we will see between 80 and 100 new operational or maintenance roles ... over and above our current employment levels," says Marc Cameron, president of Diavik Diamond Mines Inc.
The company operates Diavik on behalf of Rio Tinto and Dominion Diamond Corporation.
Though A21 will help offset declining production from other parts of the mine, Diavik is still slated to close in 2023, says Cameron.
Rio Tinto owns 60 per cent of Diavik, with Dominion Diamond Corporation owning the remainder.
The addition of A21 will generate $115 million in annual cash flow for Dominion Diamond over the rest of Diavik's life, according to Dundee Capital Markets.