De Beers Predicts Rise in Diamond Demand, Lifts Restrictions at Canada Mine

Demand for diamonds will increase by about 10 percent next year, De Beers Canada chief executive Jim Gowans told Reuters Tuesday. For this reason, De Beers has decided to resume production at its Snap Lake diamond mine in Canada's Northwest Territories.

Last year De Beers halted diamond production at Snap Lake as well as its Victor mine in Ontario due to a drop in global demand. According to a source close to the company, the mines are not proving themselves economically.

Gowans said Snap Lake will be fully operational again within a year and a half to two years. Snap Lake and Victor officially opened last summer and are De Beers' first diamond mines outside of South Africa.

Snap Lake is expected to produce about 500,000 carats this year and will eventually reach 1.5 millions carats annually, according to Gowans.