GAHCHO KUÉ MINE SURPASSES CAD2 BILLION SPENT WITH NWT & INDIGENOUS BUSINESSES
June 25 2024 - 4:00PM
De Beers Group and Mountain Province Diamonds today announced that
their joint venture Gahcho Kué mine has surpassed $2 billion* of
procurement spend with businesses in the Northwest Territories
(NWT) since construction of the mine commenced in 2015.
The milestone represents 61% of the total $3.2 billion spent on
procurement for Gahcho Kué since 2015, in line with Gahcho Kué’s
commitment to procure at least 60% of the goods and services
required to build and operate the mine from companies located in
the NWT.
Avischen Moodley, Country President – De Beers Canada, said:
“This major economic milestone highlights the value Gahcho Kué
brings to Indigenous communities, businesses, and the territory.
Our NWT business partners continue to demonstrate their ability to
provide world-class goods and services that are essential to the
successful operation of the mine.”
NWT and Indigenous businesses provide a wide range of goods and
services to Gahcho Kué, including welding, transportation
logistics, trucking support, passenger and cargo flights, labour
services and camp catering.
Mark Wall, CEO of Mountain Province Diamonds, said: “Since the
mine began, Gahcho Kué has had an impressive track record of
socio-economic contributions and environmental stewardship in the
NWT. That track record continues to strengthen, with Gahcho Kué
recording its highest ever level of spending with NWT businesses in
2023.”
According to the NWT Bureau of Statistics, diamond mining is the
largest contributor to the NWT’s Gross Domestic Product,
representing $588 million of the territory’s $4.25 billion GDP in
2023.
Key elements of the economic contribution of the Gahcho Kué mine
include the following:
- Gahcho Kué has a tiered contracting structure that gives
preference to Indigenous and NWT businesses.
- Since 2006, $5.3 billion has been spent with local and
Indigenous business in the Northwest Territories and Northern
Ontario by Gahcho Kué and De Beers Group’s wholly owned Snap Lake
(NWT) and Victor (Ontario) mines. (Snap Lake and Victor are now in
active closure).
- In 2023, 69% of the Gahcho Kué mine spend was with NWT and
Indigenous companies, totalling $228 million, the highest amount
spent with NWT businesses since construction.
- In 2023, $90 million was spent with companies operated by the
mine’s Impact Benefit Agreement communities.
- From 2006-2023, Gahcho Kué and Snap Lake mines have contributed
a combined $26.5 million in social investment within the NWT.
- Gahcho Kué has also made significant payments to Indigenous
communities in terms of six Impact Benefit Agreements and has paid
resource royalties to the Government of the NWT.
Gahcho Kué mine is located 280 kilometres northeast of
Yellowknife. The mine was built in 2015 and 2016 and was officially
opened in 2016. In 2023, the mine provided 663 full-time equivalent
jobs, including 245 jobs held by NWT residents.
- ends -
*All amounts in Canadian currency.
- Gahcho Kué Mine Haul Truck at Sunrise
Terry Kruger
De Beers Canada
(1) 403 930 0991 x2707
Terry.Kruger@debeersgroup.com