Mountain Province Plans to Raise Production

RAPAPORT… Mountain Province has forecast an increase in output at its Gahcho Kué mine this year amid solid rough demand, with operations continuing despite a spate of Covid-19 infections.

The miner plans to recover 6.3 million to 6.7 million carats at the deposit in Canada in 2022, management said Tuesday. That compares with actual 2021 production of 6.2 million carats.

Fresh coronavirus cases have come to light since local authorities declared an outbreak at the site on December 27, according to the company, which holds 49% of Gahcho Kué in a joint venture with De Beers, the majority owner. While the mine is still producing diamonds, “heightened preventative measures” are in place, and there have been “some impacts” due to quarantine requirements.

The outlook demonstrates that the mine is performing well despite the risks related to the pandemic, explained Mark Wall, Mountain Province’s CEO. The upbeat market is also providing a boost, he added.

The company sold 181,851 carats for a total of $25 million at its first rough sale of 2022, which took place in Antwerp and closed on January 21. The sale achieved an average price of $137 per carat.

“With the strengthening in the rough-diamond market that we saw throughout 2021, we expected the results of the first sale of the year to be favorable,” Wall commented. “These sales results put us on a solid footing as we head into a pivotal year.”

Image: The Gahcho Kué mine in Canada. (Mountain Province)