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 Deninu Kué First Nation for the proposed Gahcho Kué diamond mine.
The IBA put in place a framework for De Beers and the Deninu Kué First Nation to work together over the life of the mine to develop economic, environmental and cultural programmes with First Nation members.
The joint ventue (JV) partners had earlier this month inked another IBA with the Northwest Territory Métis Nation.
The Gahcho Kué project is a JV 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.
The agreement represented the final IBA for the Gahcho Kué project.
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.