The Socio-Economic Impact Report on De Beers in Canada, published by EY for The De Beers Group of Companies says that Gahcho Kué, “will provide a C$6.7 billion boost to the Canadian economy”.  (EY is a   global assurance, tax, transaction and advisory services organisation, and the nomenclature may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity.)

Gahcho Kué, described as “the world’s largest new diamond mine under construction”, and a joint venture between De Beers Canada (51 per cent) and Mountain Province Diamonds (49 per cent) is poised to open officially later this month.

The mine, situated in Canada’s Northwest Territories (NWT) is expected to produce approximately 54 million carats of rough diamonds from an estimated 35 million tonnes of ore over the life of the mine.

“Underpinned by a C$1 billion capital investment, the development of Gahcho Kué between 2006 and 2015 has already provided a C$ 440 million boost to the NWT economy,” noted De Beers in its announcement.

This however, is only the tip of the iceberg apparently. It went on to say: “However, almost 90 per cent of Gahcho Kué’s economic impact will be delivered once the mine becomes fully operational. Including its downstream supply chain impacts, the mine supported more than 2,700 jobs in 2015, with employment at the site representing more than 10 per cent of employment in the NWT’s extractive industries.”

The report says that in the last 10 years “De Beers has contributed more than C$ 7 billion to Canada’s GVA”; and exports as a result of its mining operations “have brought C$ 4 billion in foreign currency into the Canadian economy”.

Apart from the economic front, De Beers also supports 11 communities across Canada. This includes C$ 55 million contributed to First Nations through Impact Benefit Agreements (2006-2015).

“De Beers’ investment in its Victor Mine has underpinned the C$ 3.7 billion in GVA that the mine has contributed to the Ontario economy (2006-2015), while supporting an average of 1,360 full time equivalent jobs annually,” the report conveyed.

It is estimated that the relocation of De Beers Canada’s headquarters from Toronto to Calgary will make a C$ 24 million annual contribution to Alberta’s economy, while supporting almost 160 jobs annually in Alberta.

In pursuit of its exploration activities, De Beers has invested C$ 750 million across Canada since 1961, supporting almost 100 jobs each year on average, the report points out.  

Kim Truter, Chief Executive, De Beers Canada, said: “Diamonds are perhaps one of Canada’s best kept secrets, yet, as this report shows, they contribute significantly to the economy. In the 50 years we have been in Canada, we have seen how our business can be a catalyst for delivering both economic and social value, locally, regionally and across the country.”