NORTHWEST TERRITORIES – The newest diamond mine in Canada, Gahcho Kue near Lac de Gras, will pump $6.7 billion into the territorial economy during the life of the project, according to a report published by EY for De Beers Group of Companies. The mine is a joint venture of De Beers Canada (51%) and Mountain Province Diamonds (49%).
The Gahcho Kue mine will officially open later this month after an expenditure that topped $1 billion. EY estimates that the project contributed $440 million to the NWT economy between 2006 and 2015. Employment during construction last year – 2,700 jobs at the site – was more than 10% of the total in the NWT’s extractive industries.
The EY report looks at the socio-economic impact of De Beers in Canada. Here are some highlights:
- In the last 10 years alone, De Beers has contributed more than $7 billion to Canada’s GVA (or income from production) and exports supported by its mining operations have brought $4 billion in foreign currency into the Canadian economy;
- Across Canada, De Beers supports 11 communities, including $55 million in support to First Nations through impact benefit agreements;
- De Beers’ investment in its Victor mine in Ontario has underpinned the $3.7 billion in GVA that the mine has contributed to the Ontario economy from 2006 through 2015, while supporting an average of 1,360 full time equivalent jobs annually;
- The relocation of De Beers Canada’s headquarters from Toronto to Calgary is expected to make a $24 million annual contribution to Alberta’s economy, while supporting almost 160 jobs annually in Alberta; and
- De Beers has invested $750 million in exploration across Canada since 1961, supporting almost 100 jobs each year on average. The company has been responsible for the discovery of more than 170 kimberlites to date.
De Beers’ track record is impressive, despite recently suspending production at its Snap Lake diamond mine in NWT.
Read the entire report on line at www.DeBeersGroup.com/en/reports/impact/country/canada/overview.html.