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Diamonds – Mining, Lab-Grown and Conflict/Blood

N.W.T.’s Gahcho Kué diamond mine marks grand opening today – by Kate Kyle (CBC News North – September 20, 2016)

http://www.cbc.ca/news/canada/north/

Mine is estimated to become one of the 10 largest diamond mines in the world

Just over two decades in the making, Canada’s newest diamond mine is set to officially open Tuesday in the N.W.T. at a ceremony involving Indigenous leaders, mining and territorial officials. The Gahcho Kué mine, located on the tundra about 280 kilometres of Yellowknife, is estimated to be one of the 10 biggest diamond mines in the world.

The mine is poised “to help our people move out of that last rung on society’s ladder,” said Bill Enge, head of the North Slave Metis Alliance, one of six Indigenous groups who have signed confidential impact and benefits agreements related to Gahcho Kué.

The remote mine is co-owned by De Beers Canada (51 per cent) and Mountain Province Diamonds (49 per cent). “It’s a very significant development in the Northwest Territories,” Enge said.

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Attawapiskat chief accuses De Beers of issuing ultimatum – by Alan S. Hale (Timmins Daily Press – September 20, 2016)

http://www.timminspress.com/

ATTAWAPISKAT – De Beers Canada should know by the end of this week whether or not it has the support it wants from the members of the Attawapiskat First Nation to move ahead with exploration work on its Tango Extension project.

Since early August, the First Nation’s economic development corporation, Attawapiskat Enterprises, has been conducting a door-to-door survey asking people if they would support the first phase of the project that could prolong diamond mining inside their territory.

The deal being proposed to Attawapiskat members not only includes more direct involvement in the resulting mine from the Tango Extension, De Beers is also offering jobs for band member in the remediation work at the existing Victor Mine after it ceases operations in 2018.

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De Beers sees tough outlook as critical holiday sales approach – by Farah Master and Donny Kwok (Reuters U.S. – September 14, 2016)

http://www.reuters.com/

HONG KONG – Anglo American owned De Beers, one of the world’s largest diamond producers, expects some growth in the consumer market next year but its chief executive warned the overall sales environment is likely to remain tough

Bruce Cleaver, who was appointed to head De Beers in May, said prices had stabilized for rough diamonds, while the polished diamond market looked set to be flat

“We think there will be some growth in the consumer market next year, but probably not hugely significant given some of the economic factors and political factors in the world,” said Cleaver. De Beers is heading into the important holiday sales period for diamond jewelry including the Diwali festival in India, Christmas and then Chinese New Year.

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It takes two to Tango: DeBeers seeks Attawapiskat consent for new diamond mine (CBC News Sudbury – September 13, 2016)

http://www.cbc.ca/news/canada/sudbury/

Tango deposit could extend operations past 2018 when Victor Mine is expected to shut down

DeBeers Canada says it won’t even look at expanding its diamond mining operations near Attawapiskat without the blessing of the community. After nearly a decade in production, the company is running out of diamonds at its Victor Mine in the James Bay lowlands.

DeBeers Canada sees some potential in a nearby deposit called Tango, with some estimates saying it could extend the life of the Attawapiskat operation by 67 years. But before it does further exploration, chief executive Kim Truter wants the consent of the people of Attawapiskat, even though it’s only legally required to consult them.

“We are really trying to partner in a different way with the community, so they genuinely feel involved in the planning and the thinking and the decision making,” says Truter. It’s pointless us actually operating in these first nations areas if we don’t have local support.”

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De Beers study highlights mine’s economic spinoffs – by Len Gillis (Timmins Daily Press – September 9, 2016)

http://www.timminspress.com/

The company report said that between 2006 and 2015, De Beers
Victor operation also contributed $41 million to First Nations
communities through Impact Benefit Agreements (IBAs).

TIMMINS – Even with only a few years of operation left, the De Beers Victor Mine in the James Bay lowlands area continues to help sustain the Canadian economy with the injection of billions of dollars worth of employment, foreign investment and some of the highest quality gems in the world.

It was all outlined Wednesday when the company produced a special report highlighting the overall importance of diamond mining in Canada. The 24-page document, titled Socio-Economic Impact Report De Beers in Canada, was prepared by Ernst and Young. It spells out in detail that the company continues to invest multi-billions of dollars in Canada’s economy and hundreds of millions in the Ontario economy.

And by far most of the De Beers money spent in Ontario has been spent here in Northern Ontario, in Timmins and Attawapiskat, which is the closest community to the De Beer Victor Mine.

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NEWS RELEASE: CANADA’S NEWEST DIAMOND MINE TO PROVIDE C$6.7 BILLION BOOST TO ECONOMY

(September 7, 2016) Gahcho Kué, the world’s largest new diamond mine under construction, will provide a C$6.7 billion boost to the Canadian economy according to a report published today by EY for The De Beers Group of Companies.

The new mine, located in the Northwest Territories (NWT), is a joint venture between De Beers Canada (51 per cent) and Mountain Province Diamonds (49 per cent). Set to open officially later this month, it is expected to produce approximately 54 million carats of rough diamonds over its lifetime,1 reinforcing Canada’s position as the world’s third largest diamond producer by value.

Underpinned by a C$1 billion capital investment, the development of Gahcho Kué between 2006 and 2015 has already provided a C$440 million boost to the NWT economy.

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Illegal mining booms in Kimberley – by Murray Swart (Independent Online -September 6, 2016)

http://www.iol.co.za/

Kimberley – The number of illegal miners next to the road to Boshof has multiplied into the thousands as desperate community members converge on the outskirts of Kimberley in search of their fortune.

In September 2014, hundreds of miners started setting up their own diamond mining operations in the area after they were apparently kicked out of a neighbouring De Beers mining site just outside the city.

At the time, the men claimed that they had been legally digging between Samaria Road and the Kimberley Caravan Park for around two years until a dispute over payment forced them to occupy other property, where they are now mining illegally. The number of illegal miners in the area has now swelled to thousands and more arrive almost every day.

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Robert Gannicott had an adventurous and brilliant mining career – by Fred Langan (Globe and Mail – August 27, 2016)

http://www.theglobeandmail.com/

Bob Gannicott left England for Yellowknife nearly penniless when he was 19 because of a thwarted romance. He had been studying mining engineering at the University of Nottingham, but dropped out to work at the Giant Mine in Yellowknife. From that start Mr. Gannicott, who died this month at the age of 69, went on to become a prospector and mining promoter and, with the discovery of diamonds in Canada, he became one of the richest men in Yellowknife.

Robert Gannicott was born on June 11, 1947, in Sandford, a quiet country village in Somerset, in England’s West Country. His mother, Ida, was a school teacher and his father, Ivor, was an engineer who was in submarines in the Royal Navy during the Second World War.

Back then England had “11-plus” exams, which were used to determine children’s abilities so they could be streamed toward either academics or more practical training. Bob Gannicott passed on the bright side, winning a scholarship to a local grammar school, which led to university.

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MINES AND TRIBULATIONS: SEARCHING FOR AUSSIE DIAMOND MINES – by Ewen Tyler (Jewller Magazine – August 23, 2016)

http://www.jewellermagazine.com/

Australian geologist EWEN TYLER played a significant role in the discovery of Australia’s three diamond mines. Here, he reveals how they were uncovered and the impediments for diamond exploration today.

It’s never been easy to find a diamond mine and the issues encountered during the discovery and establishment of Australia’s three diamond production centres at Argyle, Ellendale and Merlin prove just that.

After 20 years working in mining exploration in Africa and Europe, I was asked to return to Australia to search for diamonds for Tanganyika Holdings. Diamond was known to exist in every Australian state but only the Wellington Alluvials in NSW had any significant production.

I had studied geology at the University of Western Australia under Rex Prider.

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Rio Tinto Will Close India Bunder Diamond Project to Cut Costs – by David Stringer (Bloomberg News – August 22, 2016)

http://www.bloomberg.com/

More than a decade after its discovery, Rio Tinto Group said Monday it will shut the Bunder diamond mine in India by the end of the year, as the world’s second-biggest miner seeks to cut costs and conserve cash.

Bunder remains a top-class diamond deposit and Rio Tinto will work with the federal and Madhya Pradesh state governments to examine options for another investor to take over the project, the company said in an e-mailed statement.

Development of the mine about 500 kilometers (310 miles) southeast of New Delhi has been stymied by delays in environmental approvals that would allow the clearing of a forested area important to tiger and other wildlife habitats. The deposit was discovered in 2004.

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De Beers to begin drilling for diamonds in northern Saskatchewan – by Alex MacPherson (Saskatoon StarPhoenix – August 19, 2016)

http://thestarphoenix.com/

The world’s largest diamond mining company is expected to launch the next phase of its search for the precious stones in Northern Saskatchewan later this month.

After collecting samples and completing a low-level airborne survey, De Beers Canada Inc. will begin drilling “targets” on the 43,000-acre Northwest Athabasca Kimberlite Project it optioned from CanAlaska Uranium Ltd. earlier this year.

“I think it ticks the boxes for kimberlites, and if you’ve got kimberlites, you should be looking at them for diamonds,” said CanAlaska president and CEO Peter Dasler, referring to the igneous rock formation named for Kimberly, South Africa.

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Attawapiskat eyes new deal with De Beers for reclamation work jobs – by Alan S. Hale (Timmins Daily Press – August 19, 2016)

http://www.timminspress.com/

Members of Attawapiskat First Nation are being asked to give the go-ahead to what the community’s economic development corporation is promoting as “major business venture … that could bring more benefits to the community as well as employment for many members.”

According to a letter sent out to all of the First Nation’s members by the corporation, Attawapiskat Enterprises, the business venture in question is having the Indigenous community directly involved in the site remediation projects after the closure of De Beers’ Victor Mine.

The diamond mine is set to cease operation in 2018, which the development corporation points out will mean that all the jobs it has brought to the community will leave with it, as well as putting the future of their winter road in question.

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De Beers stakes its reputation on spotting the difference – by Barbara Lewis (Reuters U.S. – August 17, 2016)

http://www.reuters.com/

MAIDENHEAD, ENGLAND – In nature it takes billions of years to produce a diamond, or a laboratory can grow one in days and to the untrained eye, it looks the same.

For De Beers, telling the difference is fundamental to protecting its reputation as the world’s leading diamond firm by value and holder of a roughly 30 percent share of the market for genuine rough diamonds.

It guarantees all its own mined diamonds are natural, authenticates diamonds for third parties and makes money from selling its detection equipment. Increasingly sophisticated technology to produce synthetic diamonds drives industry-wide demand for the means to determine whether a stone was created in the earth’s mantle or is man-made.

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WHY BUYERS SHUNNED THE WORLD’S LARGEST DIAMOND – by Matthew Hart (Vanity Fair – August 5, 2016)

http://www.vanityfair.com/

At 1,109 carats, big as a tennis ball, the world’s largest uncut diamond was expected to shatter records at a June Sotheby’s auction. How did the dazzling stone go unsold? An exclusive reveals what went wrong. The assassination of William Lamb began at 6:45 P.M. on a soft June night. Spectators packed the killing ground, a sales room on the second floor of Sotheby’s, in London.

The victim wore the raiment of his caste, a crisp tuxedo. A few yards in front of where he sat, blazing in its spotlight on a plinth beside the auctioneer, was a 1,109-carat top-color white diamond called Lesedi La Rona, the vessel of Lamb’s hopes for a bold new way to sell rough diamonds. His wife had bought him new shoes for the occasion, the toe caps spattered with faux gems. He wore socks patterned with jaunty slashes of color.

The Lesedi diamond opened at $50 million and struggled from the start. Fifty-one million dollars, someone offered, and too long after that, $52 million. This was not the scenario that Lamb had imagined in his dreams. In that version, a forest of bidding paddles would have shot up in the room as eager buyers drove the price north of $100 million.

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DIAMONDS NOT FOREVER: Economists call for Botswana ‘transformation’ – by Mpho Tebele (Southern African News – August 12, 2016)

GABORONE – Economists have urged Botswana to undergo what they termed a second economic transformation. In a report compiled by Econsult Botswana, economists Dr Keith Jefferies and Sethunya Sejoe warned that diamond mining is unlikely to drive economic growth in future, as opposed to providing a foundation for current economic activity and income levels.

“Second, as mines get deeper and more difficult to exploit, costs of production go up and hence profits – and the sector’s contribution to GDP and government revenues – will gradually decline,” the duo said.

Thirdly, they said, the population is growing, so constant diamond production actually entails declining production (and income) per capita. They said there are also various economic and social stresses apparent that require something other than “business as usual”.

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