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Who discovered Kennady Lake?
Does Mountain Province Diamonds have any obligation to fund exploration or construction?
Is Mountain Province involved in the operations?
What has been the reaction of the local community to this project?
What will be the impact of the project on the economy?
In January 1995, Mountain Province discovered the 5034 pipe. In mid-1997, after partnering with De Beers, the Joint Venture discovered the Hearne, Tuzo and Tesla kimberlites.
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De Beers carried Mountain Province's share of the JV costs through to December 2008, during which period the JV incurred exploration and permitting costs of approximately $180M. Under the revised 2009 JV agreement, Mountain Province has resumed funding of its share of the JV expenses effective January 2009. In return, Mountain Province has recovered the right to market its share of future diamond production. Furthermore, the $180M joint account has been reduced to $120M and Mountain Province has agreed to repay De Beers 49% of those costs ($59M) on an accelerated basis.
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Yes, through equal representation on a joint venture management committee. All material decisions relating to the JV (business plans, budgets, key operating decisions, key appointments) require the support of both partners.
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The local community has been very supportive. Lessons learned from the development of the diamond industry in the Northwest Territories and the knowledge of northern Aboriginal people have been incorporated into the Kennady Lake project by involving members of the community in the project's development.
De Beers Canada aims to develop a project which will bring lasting benefit to the region and which will contribute significantly to the sustainability of the diamond industry in Canada, and specifically in the Northwest Territories.
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Kennady Lake is expected to be the fourth diamond mine to come into production in the Northwest Territories. The development of this project will be a significant contributor to the local economy. De Beers Canada estimates 430 workers will be needed to construct the mine, and 360 will be needed to operate it. De Beers intends to build accommodations, power, telecommunications, water treatment, water disposal, roads, storage and more.
The diamond industry has become an integral part of the economy of the Northwest Territories, creating more than 2,000 jobs and contributing to a significant increase in GDP.
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