Mining heavyweight, Merlin Diamonds’ chief executive officer Joseph Gutnick last week announced at the inaugural Katherine Regional Mining and Exploration Forum that his company would begin mining near Borroloola.

He said the Borroloola mine had “high quality” D and E grade diamonds and is expected to mine 150,000 carats a year, ramping up to 250,000 a year by the end of next year.

“E Grade diamonds are sought after all around the world,” Mr Gutnick said.

“They are the best white diamonds in size and clarity.”

He said extracting the diamonds would cost about $150 per carat, and they would sell between $300 and $350 per carat polished.

“There is a good margin there, the diamonds should present a good profit,” Mr Gutnick said.

The mine will have a 15-year mine lifetime, and employ 60 people.

The company has injected up to $15 million worth of infrastructure on top of Rio Tinto’s existing $100 million investment on the site, which had remained unused for 12 years.

“There is enormous potential in the area that’s been authenticated by Rio Tinto,” Mr Gutnick said.

“They found a lot more Kimberlite sources of diamonds.”

The Borroloola mine will be Australia’s third diamond mine, and the only one in the Northern Territory.

The company will use an unconventional bore hole drilling method to extract the diamonds.

Mr Gutnick said water pressure from the drill would create slurry, bringing the rock up to the surface through a pipe.

The diamonds are then sorted from the rock at a processing plant. 

Mr Gutnick said used the mining conference as a platform for his announcement “to support the town of Katherine”.

“I’ve come to support a town that is going to be a part of our mine,” he said.

“We will give business to Katherine and surrounding areas and I want to show my appreciation,” Mr Gutnick said.

More than 100 people attended the first Katherine Regional Mining and Exploration Forum, which is set to become an annual event in the region.

Katherine Mining Services Association spokesperson Geoff Crowhurst said the conference gave Katherine businesses the opportunity to connect with mining, oil and gas companies so “they get to realise Katherine’s potential and Katherine’s capability here rather than having to bring companies from outside".

 “It’s a good time to do this when these mining and gas companies are in their infancy,” Mr Crowhurst said.

Conference spokesperson Richard Beattie said about 40 per cent in attendance came from Katherine, 40 per cent were from the Northern Territory and the remaining 20 per cent were from interstate.  

Other speakers included Vista Gold general manager Brent Murdoch, Pacific Aluminium project director Greg Rashford, and Crocodile Gold general manager NT Peter Crooks.