DeBeers to spend $636 million in Canada

SNAP LAKE, July 26 (UPI) -- South Africa's DeBeers diamond mining company said Tuesday it will spend $636 million on a Canadian prospect, its first outside Africa.

The $636 million Snap Lake project in the Northwest Territories of Canada is expected to begin production in 2007 and yield 1.5 million karats per year for around 20 years, said Gary Ralfe, managing director of DeBeers.

The investment comes as DeBeers is closing several of its bigger mines in Africa. The company said it was closing its historic Kimberley mine and plans to sell or close its Koffiefontein mine near Johannesburg. It also plans to close its Oaks mine in two years.

The Snap Lake venture is DeBeers' first outside Africa.