Nov 26 (Reuters) - Global miner Rio Tinto said it approved the development of a fourth pipe at its Diavik diamond mine in Canada’s Northwest Territories.
Development of the pipe, known as A21, was part of the original mine plan and is expected to cost $350 million over four years with production planned for late 2018.
“The A21 production will provide an important source of incremental supply for Diavik, ensuring the continuation of existing production levels,” the company said.
The Diavik diamond mine, a joint venture with Dominion Diamond Corp, started production in 2003 and according to the current mine plan will end in 2023.
Rio Tinto said the mine’s ore reserves will be updated in the first quarter of 2015.
Reporting by Abhirup Roy in Bangalore; Editing by Cynthia Osterman