Canada’s three biggest diamond mines could be forced to close early, an economist has warned, amid the ongoing slump in prices.
Operators reported losses last year for Diavik, Ekati and Gahcho Kue, all in Canada’s Northwest Territories (NWT).
They are slated for closure as they reach the end of their lives – estimated at 2026, 2029 and 2030 respectively – but dwindling demand may render them uneconomic before those dates.
Graeme Clinton, an economist in Yellowknife, capital of NWT, told CBC, Canada’s national broadcaster : “I don’t think nearly enough is made of the state of the markets which are most important to our economy. These low prices could very well mean an early closure.”
He qualified his comments by saying that none of the miners had so far indicated that they’d bring forward their closing dates.
Diamond mining is key to NWT’s economy, representing over a quarter of its GDP, but miners have been hit hard by the downturn.
Rio Tinto’s Diavik mine lost CAD 127m (USD 94.6m) in 2024, Burgundy’s Ekati lost CAD 94.7m (USD 70.5m) and Mountain Province, minority-owner of Gahcho Kue lost CAD 81m (USD 60.0m).
Early closures would cost thousands of jobs, and would dent NWT’s economy.
One of the largest gem-quality yellow diamonds ever discovered in Canada, has been unearthed from Rio Tinto’s Diavik Diamond Mine.
The 158.20-carat rough diamond is one of only five yellow diamonds weighing more than 100 carats ever unearthed at Diavik in its 22-year history, stated a release.
Diavik’s production primarily consists of white gem quality diamonds, with less than one percent of its production yielding rare yellow diamonds.
Diavik Diamond Mines Chief Operating Officer Matt Breen stated: “This two-billion-year old natural Canadian diamond is a miracle of nature and testament to the skill and fortitude of all the men and women who work in Diavik’s challenging sub-Arctic environment.”
Patrick Coppens, sales and marketing GM for Rio Tinto’s diamonds business, stated: “The beauty and purity of Diavik diamonds continues to excite passions amongst all who see them and we look forward to following the onward journey of this very special diamond.”
Mountain Province reported increased net losses for the latest quarter as prices keep on dropping in a “challenging market”.
The Canadian miner today (7 November) announced a net loss of $13.6m for the three months to 30 September, following on from a $4.7m loss in Q2 (all figures are in US dollars).
“In Q3 2024 our sales achieved 100 per cent sell-through with no unsold stock held at the end of September and a higher average selling price than the three preceding quarters,” said Reid Mackie, VP sales and marketing at Mountain Province.
The average price per carat was, however, down 21 per cent on a year ago – from $95 to $75.
The company sold a 679,599 carats were sold for $50.8m, compared to 478,653 carats in Q3 2023 for $45.3m. Year-on-year the number of carats sold was up almost 30 per cent, but revenue increased by just 12 per cent.
Adjusted EBITDA was $12.5m and loss from mine operations was $8m.
As for operations at the Gahcho Kue mine (pictured), the number of tonnes of ore treated increased 10 per cent year-on-year, but the number of carats recovered fell by 10 per cent.
CEO Mark Wall explained that this was “driven by planned lower grade in Q3 and unplanned lower grade in March and early Q2 of 2024”.
He said that while the diamond market had been disappointing, he was optimistic that the price environment would recover during 2025 and that it would be followed by a very strong production year in 2026.
Finding exceptionally large diamonds is rare. Finding extra large diamonds in fancy colors is even more rare. As such, the announcement by Dominion Diamond Mines that it has unearthed the largest known diamond ever found in North America is big news. Found in October at the Diavik Diamond Mine in Calgary, Canada, the Canadamark yellow diamond weighs in at 552 carats and beats the previous record (held by the Diavik Foxfire diamond) of 187.7 carats that was also found at the same mine.
Dominion Diamond Mines ULC sources responsibly mined diamonds and owns 40 percent of Diavik. The Diavik Diamond Mine is just shy of 150 miles south of the Arctic Circle in the Northwest Territories of Canada, and has produced several important stones in the past. This newest discovery measures about 1-1/2 inches in diameter and more than 2 inches in height. The color and texture are unique geologically speaking, as such a large and rare yellow diamond doesn’t usually form in the region. According to Dominion Diamond Mines’ release, “Abrasion markings on the stone’s surface attest to the difficult journey it underwent during recovery, and the fact that it remains intact is remarkable.”
The Canadamark(TM) program by Dominion Diamond Mines ensures that all diamonds bearing its logo are rigorously tracked from mine to polished gem in order to offer final consumers full transparency of the supply chain. Once the rough is cut, the diamonds will be certified as Canadamark(TM).
In the case of the previously found Diavik Foxfire diamonds, rather than sell it in the rough, the stone was cut and polished — yielding a 37.87-carat brilliant-cut pear shaped diamond and a 36.80 carat brilliant-cut pear shape. Both of these stones sold recently at a Christie’s auction for $1.3 million. It is expected that Dominion Diamond Mines will take the same approach with the 552-carat Canadamark(TM) yellow diamond. The yield could be several larger sized diamonds that Foxfire, or could be similar sizes but more of them. It is impossible to know, as a rough diamond must be carefully studied before being cut to determine the perfect size and shape of the finished, polished stones that will show off their most beautiful color and brilliance.
Certain other fancy yellow diamonds have made history. In fact, among the world’s largest yellow diamonds is the 439.86 carat light-yellow diamond that was found by DeBeers in 1888 and later cut into a 234.65-carat cushion-cut stone. The Tiffany Yellow Diamond is also one of the largest ever discovered. It weighted 287.42 carats in the rough when it was found in 1878 in the Kimberly Mine in South Africa. It was eventually cut in to the 128.54-carat cushion known a the Tiffany Yellow Diamond.
According to a release issued by Dominion Diamond Mines, Kyle Washington, Chairman, says “This incredible discovery showcases what is truly spectacular about Canadamark diamonds. “The color and texture of the diamond are a unique example of the journey that natural diamonds take from their formation until we unearth them. Our Diavik Mine has produced some of the most beautiful diamonds in the world, and this one certainly tops the list.”
