The Diavik Diamond Mine is one of Canada’s most prominent and influential mineral projects, located in the remote northern reaches of the country. Situated on an island within a clear cold lake, the site combines remarkable geology, complex engineering and important socio-economic relationships with local communities. This article explores the mine’s location, the nature of what is extracted, its economic significance and a selection of interesting technical, environmental and cultural aspects that make Diavik distinctive.
Where Diavik is located and its physical context
The Diavik site lies in the Northwest Territories, approximately 300 kilometres northeast of Yellowknife, on the eastern shore of a pristine lake known as Lac de Gras. The region is part of the Canadian Shield and is characterized by vast expanses of boreal forest, numerous lakes and a climate that ranges from long, cold winters to short, cool summers. While not north of the Arctic Circle, the setting presents the kinds of logistical and environmental challenges commonly associated with northern resource developments: remote access, sensitive ecosystems and extreme seasonal conditions.
Diavik was developed on an island and adjacent lakebed where several kimberlite bodies intrude the bedrock. Because the kimberlites were located under water and in permafrost-influenced terrain, the project required elaborate engineering measures, including the construction of causeways and dewatering systems, to allow mining to proceed. The mine camp and processing facilities were built to operate year-round using a combination of road, air and winter-ice logistics for supply and personnel rotation.
What is produced at Diavik and how
At the core of Diavik’s value is its production of natural diamonds. The diamonds are found in volcanic rock known as kimberlite, which originates deep in the Earth’s mantle and was brought to the surface by explosive eruptions hundreds of millions of years ago. The kimberlite pipes at the Diavik site are the host rock for diamonds of gem and industrial quality. Mining methods have included both open-pit operations and below-surface mining as the project matured and high-grade ore zones were exhausted near the surface.
Ore mined at Diavik is processed onsite in a dedicated mineral processing plant. The processing flow involves crushing and size classification, followed by proprietary separation techniques to concentrate the heavy-mineral fraction that contains diamonds. Standard recovery methods used in the industry—such as dense medium separation, grease-table recovery and modern X-ray sorting—are complemented by careful hand-inspection and sorting of recovered stones to grade diamonds by quality and type. The recovered diamonds are then cleaned, valued and shipped to global markets where they enter both jewellery and industrial supply chains.
Mining engineering and logistics
- To extract ore from beneath Lac de Gras, operators constructed engineered causeways and dewatered mining areas to create workable pits—an approach that required strict water management and monitoring.
- As mining progressed, underground methods were introduced to access deeper kimberlite zones. Transitioning from open-pit to underground mining created technical complexity but extended the life of the operation.
- Access to the site depends on seasonal infrastructure. A winter ice road is used to transport heavy equipment and bulk supplies, while workers typically arrive by aircraft to a private airstrip or are flown from regional hubs.
- The remote camp environment includes on-site housing, medical facilities, and support services to enable a fly-in/fly-out workforce model common to northern mining.
Economic significance for the region and country
Diavik has been one of the most important contributors to the Northwest Territories’ economy and to Canada’s broader mining and export sectors. The mine’s production of gem-quality diamonds places it among the more valuable diamond operations globally, meaning that the site’s outputs generate substantial export revenue. These revenues are realized not only through direct diamond sales, but also via taxes, royalties and benefits to local companies and governments.
Key elements of the mine’s economic impact include:
- Employment: The mine has provided hundreds of direct jobs on-site, across a wide range of skills including mining, processing, engineering, environmental monitoring and community relations. Indirect employment in regional service industries, logistics and suppliers has been significant as well.
- Local contracts and business development: Suppliers from nearby communities and regional centres have won contracts for catering, transportation, equipment maintenance and construction. These opportunities support capacity building among northern businesses and entrepreneurs.
- Royalty and tax streams: Diavik contributes to territorial and federal government revenues through royalties, corporate taxes and other fiscal mechanisms. Such income supports public services, infrastructure and community programs in remote regions.
- Indigenous benefits and partnerships: The mine is governed by agreements with Indigenous groups in the area that create employment and training opportunities, business contracts, and community development investments. These arrangements have been central to the mine’s social licence to operate.
Beyond direct monetary impact, Diavik has been a driver of local skills development. Training programs and on-the-job experience have enabled Northern residents to enter technical and professional roles, increasing local human capital and creating long-term career pathways in mining and related fields.
Environmental management, regulation and closure planning
Operating a large mine in a sensitive northern environment requires comprehensive environmental management. Diavik has implemented multi-layered programs to monitor and reduce environmental impacts, guided by regulatory oversight from territorial and federal authorities. Important areas of focus include water management, wildlife protection, progressive reclamation and long-term closure planning.
Water is a central consideration because ore bodies lie beneath a lake and mining affects local hydrology. The site has used engineered containment, water treatment and continuous monitoring to ensure that water released from the mine meets regulatory standards. Sediment control, water treatment plants and detailed monitoring programs have been part of operations to protect fish and aquatic habitats.
Reclamation plans have been developed from the start and updated as the project evolved. These plans aim to return disturbed land to stable and productive conditions consistent with regulatory expectations and community preferences. Typical closure measures include recontouring landforms, restoring fish habitat where feasible and managing long-term care of any remaining water-filled pits or infrastructure. Financial assurance instruments have been placed to ensure funds are available to carry out closure obligations.
Climate and environmental challenges
- Seasonal extremes complicate construction, maintenance and environmental protection; permafrost and freeze-thaw cycles require tailored engineering.
- Changing climate conditions pose new uncertainties for long-term closure, water balance and ice-road reliability, leading operators to factor climate risk into planning.
- Close collaboration with Indigenous communities and scientists supports adaptive environmental management and monitoring programs that combine western science with traditional knowledge.
Social responsibility and community relations
Diavik’s social framework includes agreements that formalize benefit-sharing with local communities and Indigenous governments. These agreements typically cover employment commitments, business opportunities, training initiatives and financial contributions for community development. The objective is to ensure that local populations gain lasting advantages from resource development while protecting cultural values and traditional land uses.
Community engagement at Diavik has included:
- Targeted recruitment and training for residents of nearby communities to increase local employment.
- Support for local business development so that northern companies can participate in supply chains.
- Programs that fund education, health, cultural preservation and infrastructure projects in partner communities.
- Ongoing dialogues to address concerns related to wildlife, fisheries and land use, recognizing that local knowledge is essential to meaningful stewardship.
These efforts have been central to maintaining a social licence to operate in an environment where relationships with Indigenous peoples are a legal and ethical imperative. The mine’s legacy will, in large part, be judged by the durability of benefits realized by northern communities.
Interesting features, milestones and innovations
Diavik stands out for a number of technical, environmental and historical reasons that illustrate how modern northern mining blends industry, science and community engagement.
- Engineering innovation: Building and operating a large mine on an island and under lake conditions required inventive engineering solutions for causeways, dewatering and water control. The project exemplified the adaptation of traditional mining techniques to a challenging lacustrine environment.
- Large gem discoveries: Over the mine’s life, Diavik has produced notable large gem-quality diamonds. While individual stones vary, the mine is well known for producing high-value stones that have fetched premium prices on global markets.
- On-site processing: The presence of a full-scale ore processing plant on-site reduces the need to transport raw ore offsite and allows for immediate grading and secure handling of recovered diamonds.
- Community partnership: The mine’s long-term agreements with Indigenous communities have become reference points for benefit-sharing and local participation in northern resource projects.
- Environment-first planning: Because of the sensitive environment and the visibility of northern projects, Diavik invested heavily in monitoring, research and rehabilitation approaches that inform best-practice guidelines across the industry.
Another noteworthy aspect is how Diavik has navigated the transition from a predominantly open-pit operation to more underground extraction. This transition demonstrates how mines can evolve their technical approach to access remaining resources while attempting to manage footprint and environmental performance.
Global significance and the broader context
Diavik plays a role not only in the Northwest Territories but in the global diamond market. Canada, with Diavik among its leading projects, is recognized as a major source of responsibly produced diamonds—products that are often marketed on the basis of both gem quality and traceable, ethically minded supply chains. This positioning has been important for consumers and brands seeking assurance on origin and environmental stewardship.
The mine’s operations also illustrate broader trends in mining: the movement of high-value commodity production into remote regions, the centrality of Indigenous relations in project approvals, and the increasing importance of environmental monitoring and progressive reclamation. Lessons from Diavik—technical, social and environmental—inform policy and practice for new developments in northern and sensitive landscapes around the world.
Concluding observations on Diavik’s role and legacy
Diavik represents a complex blend of geology, engineering, economics and community engagement. Its production of high-quality diamonds has generated substantial economic value, while the mine’s approach to environmental management and relations with local communities offers a template for responsible northern resource development. Through technological solutions, adaptive environmental practices and negotiated benefit frameworks, the project highlights how modern mining attempts to balance resource extraction with stewardship and social responsibility.
As mining at Diavik continues to evolve—whether through deeper underground mining phases, ongoing reclamation work or changing market dynamics—the lessons from Diavik will remain relevant for industry professionals, policymakers and communities that are engaged with resource development in northern and remote settings. The mine’s combination of natural riches, engineering achievement and community partnerships ensures it will be studied and debated for years to come.
