Gahcho Kué diamond mine to give $5.1bn boost to Canadian economy, says report

8 September 2016 (Last Updated September 8th, 2016 18:30)

An Ernst & Young (EY) report for the De Beers Group of Companies has revealed that the under-construction Gahcho Kué diamond mine is expected to provide a C$6.7bn ($5.1bn) boost to the Canadian economy.

An Ernst & Young (EY) report for the De Beers Group of Companies has revealed that the under-construction Gahcho Kué diamond mine is expected to provide a C$6.7bn ($5.1bn) boost to the Canadian economy.

Located in the Northwest Territories (NWT), the mine is a joint venture (JV) between De Beers Canada (51%) and Mountain Province Diamonds (49%).

Gahcho Kué is set to open later this month and is expected to produce around 54 million carats of rough diamonds in its operating life.

"It will contribute economically through a significant annual spend that places a priority on partnering with communities, local procurement, hiring and social investment."

Between 2006 and 2015, the mine development has already provided a C$440m ($341m) boost to the NWT economy.

Once Gahcho Kué becomes operational, almost 90% of its economic impact will be delivered. Last year, the mine provided more than 2,700 jobs.

The report looks into the socio-economic impact of De Beers in Canada, and also revealed that the company has contributed more than C$7bn ($5.4bn) to the country’s gross value added (GVA) in the last ten years.

Furthermore, the report noted that De Beers’ investment in its Victor Mine underpinned the C$3.7bn ($2.8bn) in GVA that the mine contributed to the Ontario economy during 2006 and 2015.

De Beers Canada chief executive Kim Truter said: “Gahcho Kué is an important project for us, but also for the Northwest Territories and local communities it supports.

"It will contribute economically through a significant annual spend that places a priority on partnering with communities, local procurement, local hiring and local social investment."

The company has invested C$750m ($581m) in exploration across Canada since 1961 and supported almost 100 jobs each year on average.