The Gahcho Kué diamond mine has now surpassed C$2 billion in procurement spending with businesses in the Northwest Territories (NWT) since its construction commenced in 2015.
This milestone represents 61% of the total C$3.2 billion spent on procurement for the mine, highlighting the project’s commitment to local economic development and Indigenous engagement.
Economic Contributions
Diamond mining remains the largest contributor to the NWT’s Gross Domestic Product (GDP), with Gahcho Kué playing a pivotal role. According to the NWT Bureau of Statistics, diamond mining accounted for C$588 million of the territory’s C$4.25 billion GDP in 2023. The mine’s spending with NWT businesses reached its highest level in 2023, totalling C$228 million, with 69% of the annual spend directed towards local and Indigenous companies.
Commitment to Local Procurement
Gahcho Kué’s procurement strategy prioritises local and Indigenous businesses, ensuring that a significant portion of its operational needs are sourced from the NWT. This includes services such as welding, transportation logistics, trucking, passenger and cargo flights, labour, and camp catering. The mine has a tiered contracting structure that favours these local suppliers, reinforcing its commitment to economic sustainability within the region.
Avischen Moodley, De Beers Canada country president, remarked on this achievement: “This 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 the goods and services essential to the successful operation of the mine.”
Indigenous Partnerships and Social Investment
Gahcho Kué’s economic impact extends beyond procurement. Since 2006, De Beers and its associated projects, including the now-closed Snap Lake and Victor mines, have spent C$5.3 billion with local and Indigenous businesses in the NWT and northern Ontario. Additionally, from 2006 to 2023, these mines have contributed C$26.5 million in social investment within the NWT.
In 2023, C$90 million was allocated to companies operated by communities with Impact Benefit Agreements (IBAs). These agreements ensure that the Indigenous communities most affected by the mining operations receive benefits, including employment opportunities and financial support. The Gahcho Kué mine has also made significant payments to Indigenous communities under six IBAs and has contributed resource royalties to the NWT government.
Operational Achievements and Future Outlook
Since its official opening in 2016, Gahcho Kué has provided 663 full-time equivalent jobs, with 245 positions filled by NWT residents. In 2023, the mine processed 3.3 million tonnes of kimberlite and recovered nearly 5.6 million carats of diamonds. The production guidance for 2024 is set between 4.2 million and 4.7 million carats.
Mark Wall, CEO of Mountain Province Diamonds, highlighted the mine’s ongoing success: “Gahcho Kué has a strong track record of socio-economic contributions and environmental stewardship in the NWT. That track record continues to strengthen, with Gahcho Kué recording its highest level of spending with NWT businesses in 2023.”
The substantial investment and economic activity generated by the Gahcho Kué mine underscore the role of ethical sourcing and local partnerships in the jewellery industry. Jewellers can leverage the narrative of supporting local economies and Indigenous communities when marketing diamonds from Gahcho Kué. This not only enhances the value proposition of their products but also aligns with increasing consumer demand for transparency and social responsibility in the supply chain.
