Mountain Province’s Recent Find -A 95 Carat Diamond
Mountain Province’s recent find -a 95 carat diamond.Mountain Province Diamonds Inc. unearthed its largest gem quality stone from its Gahcho Kué mine in the Northwest Territories, Canada since production began at the mine around less than two years ago. This 95 carat gem, a white octahedron diamond of top clarity is also the fourth largest stone recovered at the same time.
The diamond was part of the parcel carrying fancies and specials which the company acquired recently at the Gahcho Kué production split.
Reid Mackie, the company’s Vice President Diamond Marketing said the diamond find speaks and affirms ‘Mountain Province as a reliable producer of exceptional, high quality, Canadian diamonds in very large sizes and bodes well for the future discovery of similar gems.’
The company plans to present the diamond at its forthcoming rough diamond tender and will hold viewings between June 11 and June 22 in Antwerp, Belgium.
About Mountain Province
Mountain Province Diamonds and De Beers Canada are joint venture partners in the Gahcho Kué mine in Canada’s Northwest Territories. Gahcho Kué is the world’s largest new diamond mine. Through its joint venture with De Beers, the Company is well placed to capitalize from the experience of the world’s leading international diamond producer. The Gahcho Kué mine is located in Canada, the third largest and politically most stable diamond producing country. Gahcho Kué is projected to produce an average of 4.5 million carats a year (100%) over an initial 12 year life. Production during the first five years (2017-2021) is expected to average 5.4 million carats a year (100%). Mountain Province intends to maximize shareholder value through the optimal operation of the Gahcho Kué mine.
Diamond mines are extremely rare, and the world supply is expected to remain essentially flat over the next few decades as demand increases. New supply is in high demand. Canada is the first country in the developed world to produce and market high quality diamonds, and is benefiting from an increasingly important role in the global market.
In 2012, diamond miners (such as ALROSA, De Beers, and Rio Tinto) produced 128 million carats of rough diamonds, valued at US $15 billion. Once out of the ground, the rough diamonds move through the so-called “diamond pipeline,” a value chain that runs from dealers to diamond cutters and polishers, to jewely manufacturers, to retail stores, and finally to consumers. The value added along the way is impressive, with US $15 billion in rough diamonds becoming US $24 billion in polished diamonds, which in turn goes into diamond jewelry with a retail value of US $71 billion.
The supply of rough diamonds in 2012 fell 28% from a peak of 177 million carats produced in 2005. Production decreases at De Beers and Rio Tinto accounted for the bulk of the decline. ALROSA maintained its production levels.
Between 2012 and 2020, worldwide demand for diamonds is expected to grow by 5.9 percent annually, which will outstrip supply, which is only growing by 2.5 percent annually. The largest new mine will be Gahcho Kué, which will produce up to 6 million carats annually by 2020.
In Canada, the average realized price is about US $110 per carat, compared to US $15 per carat in Australia, which produces 19% of the world’s total carats but only 4% by value. The world average is US $80 per carat.