Mountain Province Diamonds, which operates the Gahcho Kué mine in Canada together with its joint venture (JV) partner De Beers Canada, has scaled down the project’s expansion and is seeking ways to reduce its expenses.
Partners have made the decision to pause the Phase 3 expansion of the Tuzo deposit following a "careful assessment of the project's economics considering the prevailing market environment." Mountain Province said that even though the project has demonstrated strong potential, current market conditions have prompted a "measured approach" to its development.
"The partners remain committed to responsibly managing operations at the mine and will continue to monitor market conditions to determine the optimal timing for any future development of the Tuzo Phase 3 project," the company said in a statement.
This, however, will not affect either carat production or sales in 2026, as the current focus remains on mining out the high-grade NEX pipe.
Meanwhile, Mountain Province board has decided not to seek a replacement for ex-CEO Mark Wall due to cost-cutting. For the time being, the current chairman of the company Jonathan Comerford will hold the position of acting president and CEO.
"The challenges currently facing the company largely reflects the prolonged weakness in the diamond sector. In this environment, our focus remains on carefully managing costs, protecting liquidity, and making measured decisions to support the long-term sustainability of our operations," Comerford said.
As part of the amended and restated JV agreement, Mountain Province received three cash call notices from De Beers in total amount of approximately CAD$49.2 million ($36.2 million). It expects that the proceeds from scheduled diamond sales may be sufficient to satisfy the first cash call due March 17, 2026. JV partners are working together to identify opportunities to reduce operating costs of the mine.
Theodor Lisovoy, Managing Editor, Rough&Polished
