Canada: A Diamond-Producing Nation

For many years, the thought of finding diamonds in Canada was little more than a prospector’s dream. But that dream became a reality following the discovery, in the 1990s, of several world-class diamond-bearing deposits in Canada’s north.

Diamond exploration began in Canada as early as the 1960s but major kimberlite discoveries were not made until the 1980s. In 1991, the first economic diamond deposit was discovered in the Lac de Gras area of the Northwest Territories. Canada became a diamond producer in October 1998 when the Ekati diamond mine opened about 300 kilometres northeast of Yellowknife. By April 1999, the mine had produced one million carats.

Diavik, Canada’s second diamond mine, began production in January
2003. During its projected 20-year life, average diamond production from this mine is expected to peak at six to eight million carats a year — about five percent of the world’s total supply. Ekati’s average production over its projected 20-year life is expected to peak at three to five million carats a year — four percent of world production by volume.

Another three mines are scheduled to be opened: one at Snap Lake, about 220 kilometres northeast of Yellowknife, N.W.T.; Victor, near James Bay in Ontario; and Jericho in Nunavut. These mines will consolidate Canada’s position in world diamond production by value, third after Botswana and Russia.

Cutting and Polishing
Although there have been diamond polishing facilities in Canada for many years, the new mines triggered the construction of a number of factories in the Northwest Territories that now employ close to 100 people. One facility is majority-owned by the Yellowknife Dene First Nation. The largest of these facilities has an output of 2500 carats a month.

There are cutting and polishing facilities in Vancouver, Winnipeg, Toronto, Montréal and Matane.

Employment
The Canadian diamond industry employs about 1200 people in mine operations and over 1000 more in support industries for exploration and mining. In total, the Canadian industry provides some 4000 direct and indirect jobs. Aboriginal persons comprise 30 to 40 percent of the work forces at Ekati and Diavik.

Kimberley Process for Rough Diamonds
The Kimberley Process was initiated by South Africa in May 2000 to develop an international certification scheme for rough diamonds in order to help prevent conflict diamonds from entering legitimate markets. Conflict diamonds originate in areas controlled by rebel groups and are often used to fund military action that targets governments.

Canada has been a leader in the process to control the conflict diamond trade. It has supported the United Nations in this initiative and, in June 2002, in Kananaskis, Alberta, this country and other G8 leaders pledged support for an international effort. Canada has now passed legislation to control the import, export and transit of rough diamonds in Canada. By participating in the Kimberley Process, Canada is doing its part to halt the devastating impact that trade in conflict diamonds is having on peace, security and sustainable development in affected countries.

Diamonds and Sustainable Development
Canada’s diamond industry is part of a minerals and metals industry that is one of the world’s largest producers and exporters. This highly productive and technologically advanced industry provides a source of stable, high income for northern, remote and Aboriginal communities.

Canadian mining companies are also leading the way in integrating sustainable development into their activities in Canada and abroad. The Canadian mining industry was the first in the world to develop and adopt a national environmental policy. On the international front, some of Canada’s major mining companies are involved in projects ranging from delivering health, water and electricity services to reintegrating workers into their communities.

Natural Resources Canada advances the Government of Canada’s commitment to the sustainable development of our natural resources — contributing to their economic importance and to a strong society and communities through knowledge, innovation, technology and international leadership.

By integrating our economic, social and environmental goals, we can ensure our quality of life and build the Canada we want, for ourselves and for future generations.