TORONTO (miningweekly.com) – Precious gems giant De Beers Canada and junior Mountain Province Diamonds (MPD) on Monday announced that they had signed an impact benefit agreement (IBA) with the Northwest Territory Métis Nation (NWTMN) for the proposed Gahcho Kué diamond mine.
The IBA put in place a framework for De Beers and the NWTMN to work together over the life of the mine to develop economic, environmental and cultural programmes with First Nation members.
The Gahcho Kué project is a joint venture between De Beers (51%) and MPD (49%), located 280 km north-east of Yellowknife, in the Northwest Territories. De Beers is the operator of the project.
“De Beers is committed to sustainable development and through this agreement the NWTMN members can access new employment, training and business opportunities while ensuring strong environmental and cultural programmes,” De Beers in Canada COO Glen Koropchuk said in a statement.
"De Beers Canada has earned the respect of the Northwest Territory Métis Nation and enhanced its social licence entering into this IBA, which will provide socioeconomic benefits, including employment, training and business opportunities for our indigenous Métis members on an equitable basis as other Aboriginal parties with IBAs,” Garry Bailey, president of the NWTMN said.
Gahcho Kué would employ close to 700 people during the two years of construction and about 400 people during its operational phase.
According to the revised and updated feasibility study, the project will cost C$859-million to construct and the operation will require working capital of C$80-million.
Costs to ramp up the operation through to January 2017 have been estimated at C$82-million.
The start of production is targeted for 2016.