Nunatsiaq News
NEWS: Nunavut September 13, 2018 - 3:29 pm

A done deal: De Beers now owns Chidliak diamond project near Iqaluit

“We are very excited about the Chidliak cluster, an asset with very strong development potential”

NUNATSIAQ NEWS
Peregrine Diamonds discovered these diamonds in 2013 at its Chidliak property between Iqaluit and Kimmirut. On July 19, the company announced that De Beers Canada plans to acquire Peregrine for $107 million. (FILE PHOTO)
Peregrine Diamonds discovered these diamonds in 2013 at its Chidliak property between Iqaluit and Kimmirut. On July 19, the company announced that De Beers Canada plans to acquire Peregrine for $107 million. (FILE PHOTO)

The legendary De Beers Group has completed its purchase of Peregrine Diamonds Ltd., a deal that gives them control of the promising Chidliak site near Iqaluit.

De Beers paid Peregrine shareholders 24 cents a share, bringing the total purchase price to $107 million, De Beers said on Sept. 13 in a news release.

Based in London, England, and controlled for many years by the Oppenheimer family, De Beers is now owned by Anglo American plc, which holds 85 per cent of De Beers’ shares. The other 15 per cent of the company is owned by the government of Botswana.

In Canada, De Beers operates the Victor mine in northern Ontario and the Gahcho Kué mine in the Northwest Territories, through a joint venture with Mountain Province Diamonds.

They also own diamond mines in Botswana, Namibia and South Africa.

By acquiring Peregrine, De Beers acquires the 317-hectare Chidliak project, located about 120 kilometres northeast of Iqaluit.

In 2016, Peregrine estimated that the three main kimberlite pipes on the property contain about 22 million carats of diamonds.

They also estimated that a mining operation at Chidliak could create between 275 and 325 jobs, with a lifespan estimated at about 10 years.

“We are very excited about the Chidliak cluster, an asset with very strong development potential,” the CEO of De Beers Canada, Kim Truter, said in a news release.

“Having built and operated three diamond mines in Arctic-like conditions in the past 15 years, our expertise in bringing projects of this nature to fruition is unparalleled,” Truter said.

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(6) Comments:

#1. Posted by Northern Guy on September 14, 2018

Yikes! This is going to be a game changer for Iqaluit and Pangniqtuq. If you were thinking about getting into the housing market I would do so before the mine goes into production. If Yellowknife was any example prices will soar and available units will shrink after the mine gets going.

#2. Posted by Kenn Harper on September 14, 2018

De Beers goal is to own and control the world’s supply of diamonds, as a way of keeping the price high.
They now own this, and will pretend to continue to explore it for a while, but they will eventually mothball it to prevent its diamonds from coming onto an already overcrowded market. $107M dollars is chump change for De Beers, a small price to pay for keeping Chidliak’s diamonds off the market.

#3. Posted by pissed off on September 14, 2018

So right Ken!!!!!!!!!!

In the world view of things, diamonds in the ground is like money in the bank for De Beers

#4. Posted by Iqaluit on September 14, 2018

https://en.wikipedia.org/wiki/De_Beers

#5. Posted by Northern Guy on September 17, 2018

Kenn, every advanced exploration site in Canada that De Beers has purchased has developed into an operating mine. While I don’t disagree with your assessment of De Beers motivations for buying the property i.e. the control of the world’s diamond supply (which some argue has an artificially maintained valuation driven largely by De Beers). I remain confident that if De Beers finds the property viable that they will mine it.

#6. Posted by Diamond Joe on September 17, 2018

Mr. Harper, that was true of De Beers until about fifteen to twenty years ago, but it is not true now.

Because of new diamond production from Canada, Russia and other countries, De Beers simply does not have the market clout anymore. They are no longer a monopoly. It is now a company just like any other, and a subsidiary of a much larger firm, Anglo American.

From Wikipedia: “Until the start of the 21st century, De Beers effectively had total control over the diamond market as a monopoly. Competition has since dismantled the complete monopoly, though De Beers Group still sells approximately 35% of the world’s rough diamond production through its global sightholder and auction sales businesses.”

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