Rio Tinto approves mining new diamond pipe at Diavik

RioTinto, the majority owner of N.W.T.'sDiavikdiamond mine, hasapproved the development of a fourth diamond pipe at the mine at a cost of just under $400 million.

TheDiavikmine is located 300 kilometres northeast of Yellowknife.

The company says construction to accesstheA21pipeis slated to begin next year, with diamond production fromthe pipe expected to beginin 2018.

On average, building the 2.2-kilometre dike to access theunderwaterpipewill require 177 construction workersper year.

New production jobswill eventually need to be filled, too.

"Once we move into open pit operations, we will see between 80 and 100new operational or maintenance roles ...over andabove our current employment levels," says Marc Cameron, president ofDiavikDiamond Mines Inc.

The company operatesDiavikon behalf of RioTintoand Dominion Diamond Corporation.

ThoughA21will help offset declining production from other parts of the mine,Diavikis still slated to close in 2023, says Cameron.

RioTintoowns 60 per cent ofDiavik, with Dominion Diamond Corporation owning the remainder.

The addition ofA21will generate $115 million in annualcash flow for Dominion Diamondover the rest ofDiavik'slife, according to Dundee Capital Markets.