Rio exits Diavik as Canada’s diamond boom flickers

Rio Tinto (ASX, LSE, NYSE: RIO) said it’s produced its final diamonds from the Diavik mine in Canada’s Northwest Territories, bringing to a close one of the country’s most significant mining operations after more than two decades of production.

Diavik has officially ceased operations after yielding more than 150 million carats of rough diamonds since production began in 2003, Rio Tinto said Wednesday in a statement. Economic reserves have now been exhausted.

“This is an historic day for Diavik and the Northwest Territories and a great source of pride for this unique Canadian success story,” Matthew Breen, the mine’s chief operating officer, said at a ceremony to mark the end of production.

Diavik “has been an inspired collaboration between a modern mining company and Indigenous partners with an enduring legacy of socioeconomic benefits for the North,” he added. “We look forward to continuing to respectfully reclaim the land in line with our commitments to, and in partnership with, the government of the Northwest Territories and Indigenous partners.”

Watch below a video of the final ore at Diavik:

News of the closure extends a difficult period for the territory’s mining industry following last year’s halt in open pit operations at Burgundy Diamond Mines’ (ASX: BDM) Ekati property amid heightened global competition from synthetic stones and depressed prices. A third diamond mine in the territory, De Beers’ Gahcho Kué, is expected to operate until 2030.

The mines are located hundreds of kilometres northeast of Yellowknife and are accessible only by air or seasonal winter roads.

Four pipes

Located beneath Lac de Gras, about 220 km south of the Arctic Circle, Diavik was discovered in 1991 and grew into one of Canada’s biggest diamond mines. The operation comprises four kimberlite pipes mined with both open-pit and underground methods, producing high-quality white gems along with a smaller number of rare yellow diamonds.

The final production milestone was marked by a site ceremony attended by Indigenous government organizations, government officials and other stakeholders, underscoring the mine’s long-standing partnerships in the North.

While mining has now concluded, Diavik’s final parcels of rough diamonds will continue to be polished and sold through 2026 and beyond via Rio Tinto’s global customer network, including its Select Diamantaires.

Planning for Diavik’s closure began even before production started, and reclamation work is now set to accelerate. Closure activities will extend to 2029, followed by a period of post-closure monitoring