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Rio Tinto Approves Diavik Underground Mining

Posted on: Monday, 26 November 2007, 09:00 CST

Mining company Rio Tinto has approved investment in the underground mining phase of the Diavik Diamond Mine. The approval is for additional funding of $563 million bringing the total investment to date in the underground mine to $787 million. The investment will be funded by the two Diavik joint venture partners, Rio Tinto at 60% and Harry Winston Diamond at 40%.

Under the current life of mine plan, diamond production from underground would begin in 2009 and continue beyond 2020. Open pit mining is expected to cease in 2012, at which time Diavik would become an all underground mine. Diavik's total mine life remains within the 16 to 22 years projected in the original feasibility study of 1999.

To support underground mining, Diavik must construct new surface works including a crusher and paste backfill plant, expand its water treatment and power generating plants, and construct ancillary facilities including fuel and cement storage, and additional accommodation facilities. Approximately 20 kilometers of underground development works will also be established to bring underground mining into production. The capital investment of $563 million will be spent over the next two years, adding to the $224 million invested in 2006-07 for the underground feasibility studies and related capital projects.

Source: Datamonitor

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