Rio Tinto’s Final Diamond: The Closure of Diavik Marks the End of an Era

 

Rio Tinto has officially extracted the last diamond from its Diavik mine in Canada’s Northwest Territories, bringing to a close more than two decades of production and signalling the company’s exit from the diamond sector. The milestone reflects a strategic shift by the global mining giant toward core commodities such as copper and iron ore.

Over its 23 year lifespan, Diavik produced in excess of 150 million carats of rough diamonds, establishing itself as one of Canada’s most significant diamond operations. With economically recoverable reserves now fully depleted, the mine has ceased production, concluding a chapter that began in 2003.

Situated beneath Lac de Gras, approximately 220 kilometres south of the Arctic Circle, Diavik was discovered in 1991 and developed into a world-class operation. The mine exploited four kimberlite pipes through a combination of open pit and underground mining methods, yielding predominantly high-quality white diamonds alongside a smaller proportion of rare yellow stones.

The closure was marked by a formal ceremony attended by Indigenous representatives, government officials, and key stakeholders, highlighting the longstanding partnerships that underpinned the mine’s success. Diavik has been widely recognised as a model of collaboration between industry and Indigenous communities, delivering sustained economic and social benefits to the region.

Despite the end of mining activities, Rio Tinto will continue to process, polish, and distribute the remaining production through its global sales network, including its Select Diamantaires, into 2026 and beyond.

The closure comes at a challenging time for the Northwest Territories’ diamond sector. Operations at the Ekati mine were curtailed last year amid increased competition from lab grown diamonds and softer global pricing, while the Gahcho Kué mine remains in operation with a projected life extending to 2030.

Planning for Diavik’s closure had been integrated from the outset, and rehabilitation efforts will now accelerate. Site reclamation is expected to continue through to 2029, followed by a structured period of environmental monitoring to ensure long term sustainability and land restoration.

The end of Diavik is more than the closure of a mine. It represents the conclusion of one of Canada’s most important diamond producing assets and a notable moment in the evolution of the global diamond industry.

Source: DCLA

Mountain Province Sales Slump in "Very Difficult" Conditions

 

Mountain Province Diamonds has reported a 42% drop in sales for FY2025, as “very difficult” market conditions persist.

The Toronto-based miner said revenue for the full year was down from USD 195.2m to USD 111.5m, although there was an improvement in Q4, with the drop in sales down by a relatively modest 11% to USD 33m.

In a quarterly update published on 9 March it blamed continued pressure on rough diamond pricing due to uncertainty surrounding U.S. tariffs, geopolitical factors, and the ongoing threat from lab grown diamonds.

The average price per carat fell 18% from USD 72 to USD 59 in FY2025, and 24% for Q4 2025. The company blamed challenging market conditions and the mix of goods sold for the Q4 average price, reflecting the sale of a finer set of goods held back from previous quarters.

Production guidance for 2026 is 6.6m to 7.2m carats, compared to 4.33m carats recovered in FY2025.

Mountain Province operates the Gahcho Kue mine, in Canada’s Northwest Territories in a joint venture with De Beers.

Last month it said it was pausing plans for the Tuzo Phase 3 project, which would extend the life of the mine, but require substantial capital expenditure.

“While the Tuzo Phase 3 project has demonstrated strong potential, current market conditions have prompted the partners to take a measured approach to its development,” the company said.

Source: DCLA

Diamond Slowdown: Expansion at Gahcho Kue is "Paused"

 

Mountain Province Diamonds (MPD) say it has “paused” plans for a key expansion that would have prolonged the life of its Gahcho Kue mine in Canada’s Northwest Territories.

MPD, together with De Beers, its joint venture partner, say “current market conditions” are to blame.

In a corporate update published on 13 February they say plans for Tuzo Phase 3, an open pit project targeting high-value kimberlite, is being put on hold.

Planning and early studies have been completed, but major physical development has not yet started.

“The partners remain committed to responsibly managing operations at the Mine and will continue to monitor market conditions to determine the optimal timing for any future development of the Tuzo Phase 3 project,” MPD said in the update.

The postponement will not impact production or sales in 2026, it said, as mining continues at the NEX pipe.

MPD is due to issue its Q4 2025 production and sales figures later this week, along with its guidance for 2026.

Postponing Tuzo Phase 3 avoids major capital expenditure but could shorten the life of the mine.

MPD must meet its 49 per cent share of joint venture cash calls totaling CAD 49.2m (USD 36.1m) for Gahcho Kue operations, with the first payment due next month

The project was designed to sustain operations from roughly 2027 through 2030, with ore processing extending to 2031, building on earlier plans that already pushed the mine life to 2031 via pit optimizations.

Source: DCLA