The Gahcho Kué diamond mine, a joint venture between De Beers Group and Mountain Province Diamonds (TSX: MPVD; NASDAQ: MDM), has achieved a significant milestone, surpassing C$2 billion in spending with Northwest Territories (NWT) and Indigenous businesses.
This achievement marks 61% of the total C$3.2 billion invested in the project since construction commenced in 2015. Local businesses have provided a range of services, including welding, transportation logistics, trucking, passenger and cargo flights, labor, and camp catering. The venture aims to source at least 60% of its project requirements from local businesses.
Economic Impact
The NWT Bureau of Statistics reports that diamond mining is the largest contributor to the territory’s gross domestic product, contributing C$588 million out of C$4.25 billion in 2023.
Key economic contributions from the Gahcho Kué mine include:
A tiered contracting structure prioritizing Indigenous and NWT businesses.
Since 2006, C$5.3 billion has been spent with local and Indigenous businesses in the NWT and northern Ontario by Gahcho
Kué and De Beers Group’s Snap Lake (NWT) and Victor (Ontario) mines. (Snap Lake and Victor are now in active closure).
In 2023, 69% of Gahcho Kué’s spending was with NWT and Indigenous companies, totaling C$228 million, the highest amount spent with NWT businesses since construction began.
C$90 million was spent in 2023 with companies operated by the mine’s impact benefit agreement (IBA) communities.
From 2006 to 2023, Gahcho Kué and Snap Lake mines contributed a combined C$26.5 million in social investment within the NWT.
Community and Employment
Gahcho Kué has made significant payments to Indigenous communities through six IBAs and has paid resource royalties to the NWT government. Officially opened in 2016, the mine now provides 663 full-time equivalent jobs, including 245 jobs held by NWT residents.
Located about 280 km northeast of Yellowknife on the traditional territories of the Tlicho, Dene, and Metis peoples, De Beers holds a 51% stake in the mine and operates it, while Mountain Province retains a 49% stake.
Production Highlights
In 2023, the mine processed 3.3 million tonnes of kimberlite and recovered nearly 5.6 million carats. For 2024, the projected recovery is between 4.2 million to 4.7 million carats.
