TORONTO (miningweekly.com) – Underground production is now under way at the Diavik diamond mine, in Canada's icy Northwest Territories, operator Rio Tinto announced this week.

The development is a key milestone for Diavik, which will transition to become a solely underground operation by 2012.

Rio Tinto owns 60% of Diavik and Toronto-based Harry Winston Diamond Corp, with partner Kinross Gold, owns the other 40%.

Openpit mining began at the operation in 2003, and will end in two years' time, after which Diavik will operate as an underground mine until at least 2020.

An inauguration ceremony on Thursday was attended by a senior Rio Tinto delegation, traditional owners, Northwest Territories dignitaries, and employees.

"The Diavik diamond mine is a world-class resource that has required significant financial commitment from Rio Tinto and its partners,” commented Rio Tinto diamonds and miners CE Harry Kenyon.

“From the mid-1990s when the initial discovery of Diavik was made and the joint venture arrangements put in place, we have fully supported the development plans for Diavik,” he continued.

“Today a new chapter begins.”

The Diavik mine is expected to produce around 7,8-million carats,this year, Harry Winston said in December.

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