Diamond Buyers Club

Anglo American’s De Beers has bought Canada’s Peregrine Diamonds (TSE:PGD), the company behind the Chidliak mine in the Canadian territory of Nunavut, as the world’s largest roughs producer by value needs to replace its closing mines in the country.

The Cdn$107 million-deal ($87m) extends De Beer’s footprint in Canada’s frozen north beyond the Gahcho Kué joint-venture, which recently achieved full production.

The Chidliak resource, discovered in 2008, has an inferred resource of 22-million carats and needs about Cdn$455m to bring into production.

“With a strong outlook for consumer demand, we are seeking new opportunities to invest in our future supply potential and look forward to growing our portfolio in Canada,” De Beers CEO Bruce Cleaver said in the statement.

Canada produces approximately 10% of world’s overall diamond output by volume and about 15% by value.


More to come…

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