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A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Rio Tinto (ASX: RIO) said on Thursday that it has completed the Phase 1 of the A21 underground expansion at its Diavik diamond mine in Canada’s Northwest Territories, and is now moving into commercial production.
The Australian miner said last year it was going ahead with a $40 million expansion of Diavik by taking the existing A21 open pit underground, which would extend the operation’s life to at least early 2026.
Phase 1 of the A21 underground project is slated to produce an extra 1.4 million carats. Phase 2 is expected to add another 800,000 carats and was approved earlier this year with an additional investment of $17 million.
The construction of the A21 underground mine involved the development of over 1,800 metres of underground tunnels to access the orebody and begin underground production.
Rio said there were no lost time injuries after more than 100,000 labour hours completed over 20 months during the development and construction work.
“The A21 underground operation is positive news for our employees, partners, suppliers and local communities in the Northwest Territories, as it will enable operations to continue through to closure,” Diavik mine chief operating officer of Matt Breen said in the statement.
“Rio Tinto’s decision to proceed with Phase 2 is a testament to the excellent performance of our Diavik team in successfully developing the underground mine beneath the previously mined A21 open pit,” Breen said.
He added that the company is continuing its investment in preparing for the closure and remediation of Diavik mine site, focusing on progressive reclamation activities such as earthworks, site clean-up, and equipment procurement.
Diavik represents one of Canada’s largest diamond mines in terms of volume of rough diamonds, having produced over 144 million carats of rough diamonds since mining began in 2003.
Comments
Daniel zacha
After the mining is exhausted those two pits would make a great marina if it were a better climate.