De Beers Opens Two New Diamond Mines In Canada
11:54 EDT Friday, July 25, 2008
JOHANNESBURG -(Dow Jones)- De Beers SA Friday opened two diamond mines in Canada which it said are expected to produce 2 million carats a year.
"Never before have we opened two mines at the same time and never before have we opened a mine outside of Africa," said Nicky Oppenheimer, chairman of the Johannesburg-headquartered company.
Snap Lake mine in the Northwest Territories is expected to produce 1.4 million carats a year and has an estimated life of mine of almost 20 years. It is Canada's first underground diamond mine.
Victor, located in northern Ontario, will be the province's first diamond mine. De Beers has said the open-pit mine will have an annual output of 600,000 carats and an expected life of 12 years.
"It has taken us several years and over $1 billion to build each mine," De Beers Canada President Jim Gowans said.
The company, which is majority owned by London-based mining concern Anglo American PLC (AAUK), said it has reached agreements with the governments of the Northwest Territories and Ontario to make available for sale 10% by value of the diamonds from the two mines to approved manufacturers.
De Beers produces and markets about 40% of the world's supply of rough diamonds.
Company Web site: www.debeersgroup.com
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@ dowjones.com
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(END) Dow Jones Newswires
07-25-08 1153ET
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