July 16, 1999
Tiffany To Get Share of Diavik Diamonds
Tiffany & Co. formed a joint venture with mining company Aber Resources Ltd. that will guarantee its supply of diamonds from Canada's next diamond mine.
Aber, based in Vancouver, owns 40% of the Diavik Diamonds Project in Canada's Northwest Territories. Diavik is expected to come on-line in 2002, making it the second operating diamond mine in Canada. The Ekati Diamond Mine, co-owned by BHP Diamonds and Dia Met, began production in October 1998.
"This agreement with Aber is intended to ensure Tiffany a steady supply of diamonds at competitive prices," says Michael Kowalski, president and CEO of Tiffany. In addition to the companies' agreement, Tiffany purchased 8 million shares of Aber for $72 million, and a member of Tiffany's management will join Aber's board of directors.
- by Stacey King