After more than two decades of operation, Rio Tinto has officially completed diamond production at the Diavik mine, located in Canada’s Northwest Territories.
Since its launch in 2003, the mine has yielded over 150 million carats of rough diamonds, primarily colorless stones alongside a smaller share of yellow diamonds.
A Key Asset in Global Diamond Supply
Diavik was built on several kimberlite pipes, initially mined through open-pit operations before transitioning underground.
Beyond its production, the mine stood out for:
- strong partnerships with Indigenous communities
- significant regional economic impact
- advanced environmental and operational standards
It became one of the most important diamond-producing sites in Canada.
Rio Tinto’s Exit from the Diamond Industry
The closure of Diavik marks a strategic turning point, as it was Rio Tinto’s last diamond-producing asset.
- The Argyle mine in Australia closed in 2020
- The group exited other diamond ventures in recent years
- With Diavik, Rio Tinto fully withdraws from diamond mining
However, the final production will continue to be sold through its global distribution network beyond 2026.
A Structural Shift in Supply
Diavik’s closure reflects a broader industry trend:
The gradual depletion of major diamond mines
With fewer new discoveries and increasing operational constraints, the supply of natural diamonds is tightening.
Over time, this could:
- support the value of natural diamonds
- reinforce their rarity
- further differentiate them from lab-grown alternatives
Long-Term Closure and Environmental Commitment
Although mining has ended, site closure is a long-term process.
Rehabilitation efforts are expected to continue until 2029, followed by ongoing environmental monitoring.
Market Implications
The end of Diavik highlights a deeper transformation in the diamond industry:
- declining primary supply sources
- increased scarcity of natural diamonds
- evolving market dynamics
In this context, provenance, rarity, and quality are becoming increasingly critical factors for both buyers and investors.