Diamond production at the Diavik mine in Canada rose in the first quarter of 2024 as operations returned to standard levels following a temporary suspension in 2023. Operated by Rio Tinto, the mine produced 942,000 carats during the three months ending March 31, reflecting a 27% increase year on year and a 22% rise from the previous quarter.
Production was paused in the same period last year to allow workers to observe a mourning period following a fatal plane crash. In addition, the mine experienced limited ore availability due to the shutdown of two kimberlite pipes.
Recovery of Notable Yellow Diamond
During the quarter, Diavik yielded a 158.20-carat yellow diamond, described as one of the largest gem-quality yellow diamonds recovered in Canada. Rio Tinto did not disclose details regarding its sale or valuation. Canadian production has historically been weighted toward colorless stones, making this recovery atypical in terms of coloration.
Mine Nearing End of Operations
Diavik is Rio Tinto’s only remaining diamond-producing asset, following the closure of the Argyle mine in 2020. The site is expected to cease production in 2025. Full-year production guidance has not been issued, but 2023 output totaled 2.8 million carats, down 17% from the previous year.
Rio Tinto has indicated that it is continuing diamond exploration activities in Angola.
Industry Implications
With Diavik approaching the end of its operational life, the production outlook and sourcing implications remain relevant for the trade. The recovery of a large yellow diamond highlights the range of goods that can still emerge from the site, despite the overall decline in output.
Canada remains a notable source of diamonds with established supply chain transparency. As Diavik winds down, exploration activity in regions such as Angola is expected to draw increased industry attention.
