It’s a Snap! $872 Million Snap Lake Diamond Mine Part of $1 Billion Planned for Mining Projects in Canada’s Northwestern Territories

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Researched by Industrial Info Resources (Sugar Land, Texas). The Northwest and Nunavut Territories of Canada hold a treasure trove of natural resources including gold and diamonds. Six projects totaling over $1 billion are being developed and are ready to contribute to the local economy.

De Beers Canada Corporation (Toronto, Ontario), a subsidiary of De Beers S.A. (Johannesburg, South Africa), which is the holding company of the De Beers mining interests around the world, began construction on the Snap Lake mine with the opening of the winter road in February of 2005. Of the $872 million construction budget, over $431 million was spent by mid-August of 2006 on contracts and purchase orders for the construction of the mine. De Beers Canada reports that it is committed to the participation of local and regional Northwest Territories (NWT) businesses for the provision of goods and services related to the construction of the Snap Lake mine.

Construction is expected to be complete in 2007, the plant will then be commissioned and production will begin. Annual production is expected to be 1.4 million carats. Approximately 500 full-time workers will be required to operate the mine. The life of the mine is estimated at 20 years and 250 people will be working at the site at any given time. The final regulatory approvals required for the construction of the mine were granted in May of 2004. Once the Snap Lake mine is commissioned, it will be De Beers’ first mine outside of Africa and Canada’s first fully underground diamond mine. The new mine is located north of Yellowknife, Northwest Territories.

First reporting on the project in 1999, IIR outlined the project in its early planning stages. The project was under development by Winspear Resources, Limited at that time. De Beers Canada purchased Winspear's interest in the Snap Lake diamond deposit in 2000 for more than $400 million and it is considered the first diamond-mining takeover in Canadian history.

Additional projects in the works for the Northwestern Canadian Territories are more diamond mines, a zinc mine, and several gold mines, a treasure trove indeed. BHP Billiton Diamonds, Incorporated has a diamond mine/processing plant expansion planned for its Yellowknife Ekati Diamond Mine. Canadian Zinc Corporation plans a restart of the Nahanni Butte Prairie Creek zinc mine. Cumberland Resources, Limited is in the permitting stage for its Meadowbank gold mine. De Beers Canada has another diamond mine in the early planning stages called Kennedy Lake AK/CJ Diamond Mine. The Miramar Mining Corporation plans call for a $60 million gold mine in Hope Bay.

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