Aber, Rio Tinto OK $265 Million Diavik Construction Program

The owners of Canada's Diavik diamond mine, Aber and Rio Tinto, have approved a $265 million program for construction of the mine’s second dike, a process plant optimization study, and an underground mining feasibility study.

According to Diavik Diamond Mine (DDM), the unincorporated joint venture between the site owners, construction of the A418 dike to allow open pit mining of the A418 ore body is expected to cost $190 million and work will start this summer.

First production from the pit is expected to be mined in early 2008.

An additional $75 million is earmarked for the construction of an exploratory decline to provide access to the A418 pipe and both the North and South A154 pipes. This will allow data collection to support feasibility studies into underground mining of the three diamond ore bodies. The studies are expected to be completed in the first half of 2007.

In a quarterly report released yesterday (Monday) by Diavik Diamond Mines Inc (DDMI), which manages the mine, mining shifted focus to developing the A154 North ore body. 2004 diamond production totaled 7.57 million carats.

At year end, Diavik’s total workforce was just over 700, of which 70 percent was northern and 38 percent Aboriginal.

In community work, Diavik, in partnership with the Yellowknife, local businesses, and local fundraising group Facilities for Kids, completed Phase 2 of the Multiplex Arena, advancing completion two years and ahead of the original schedule and well below the original budget, DDMI said.