Canada Kicks Ass
Diamonds

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Canadaka @ Wed Apr 13, 2005 11:39 pm

Anyone know much about the diamond minging industry up in the NWT?

   



-Mario- @ Thu Apr 14, 2005 4:43 am

Its big... GOt to watch a show on it... Now Quebec is gonna try to do the same in its North.

   



hormel26c @ Thu Apr 14, 2005 5:02 am

Here's the INAC word on it. Today we take Hollywood; tomorrow Johannesburg.
[flag]

   



1964-D-Peace @ Thu Apr 14, 2005 5:03 am

Canadaka Canadaka:
Anyone know much about the diamond minging industry up in the NWT?


Hi. I used to dabble a little in gemstones and diamonds before settling with coins (which are a whole lot safer to deal with, if you ask me).

Right off that bat, all I know is that it was in the Northwest Territories where the first diamond mine was discovered, and that even though the diamond industry in Canada is still fairly young, it is currently the second or third largest diamond producer in the world.

Not content to leave you without any hard facts, however, I dug up this little overview on the subject. Hope it's something new:

Indian and Northern Affairs Canada - Diamonds in Canada

$1:
Diamonds in Canada

--------------------------------------------------------------------------------

Introduction

Following the discovery of diamonds in 1991 at Point Lake, Northwest Territories (NWT) by Chuck Fipke and Stu Blusson, two geologists from British Columbia, the largest staking rush in the history of Canada began. That staking rush led to the discovery of the Ekati Diamond Mine in 1998, making Canada the 8th major diamond producing country in the world. Together with the opening of the Diavik Mine in 2002, this led to major changes within the global diamond industry and the way diamonds are marketed around the world.

The Ekati and Diavik discoveries were soon followed by the discovery of the Jericho deposit in Nunavut, Snap Lake in the NWT and the Victor Deposit, near Attawapiskat in Northern Ontario.

Since then, exploration has proceeded across the country at a rapid pace. Potentially significant finds have been found in the Otish Mountains in Quebec, Fort a la Corne in Saskatchewan and Buffalo Hills in Northern Alberta. In Nunavut, there are promising new occurrences on Baffin and Victoria Islands, and, more recently, on Melville Peninsula and in the Churchill region. In fact, several hundred kimberlite pipes have been discovered across the country since the original finds at Point Lake. In the global context, approximately 50% of the world exploration budget for diamonds is targeted at Canada.

Mine Development and Production

Canada's current production comes from two mines: the Ekati Mine, owned by BHP-Billiton (80%), Chuck Fipke (10%) and Stewart Blusson (10%), has over 100 kimberlite pipes on its property, of which eight are considered economically viable and will likely be mined. The projected mine life for Ekati is 21 years (including the past five years of production,) and is expected to produce a gross value of approximately $9.5 billion (C).

During its initial three years of operation, BHP Diamonds Inc. (now BHP Billiton Diamonds Inc.) sold 35% of its production to the De Beers Diamond Trading Company (DTC). That contract ended in 2002 and BHP-Billiton markets most of its all Canadian production on the open market.

At the end of 2001, with the Ekati mine in full production, Canada ranked 6th in the world by value of production. The Ekati production was the world's first major, full-range assortment of high-quality diamonds, valued between $100 (US) and $160 (US) per carat, to hit the global market outside of the DTC.

The Diavik Mine is a joint venture, owned by Rio Tinto (60%) and Aber Corporation (40%). Aber is the only fully Canadian-owned corporate producer.

Throughout its 20-year mine life, Diavik will mine four kimberlites, and produce a gross value of approximately $10 billion (C).

As Diavik moves into full production, Canada's diamond output has doubled, with projections in the range of $1.2 billion (US) for 2004 total Canadian production. Canada is now ranked 3rd by value in world production and is a serious competitor as a supplier to traders and major manufacturers in the global market.

An important factor to consider in the context of world production is the impact of diamonds on the nation's Gross Domestic Product (GDP). On a national scale, the impact is relatively low for Canada. However, for the NWT, the picture is dramatically different. At about 20% of GDP, we acknowledge the major contribution diamond exploration and mining has made to that economy, and the importance of benefits that can be derived regionally from such activity.

By comparison, the Snap Lake Project, owned and operated by De Beers, has an estimated production value of $2.7 billion (C), and will produce over a 15 year mine life. The Jericho project in Nunavut, owned by Tahera Corporation, is valued at about $460 million (C) and is expected to have an eight-year mine life.

The Victor Deposit in Northern Ontario is also owned by De Beers. The site is in pre-development stage and is expected to be in production by 2008.

Assuming development proceeds as projected, the current projected value of Canada's production is anticipated to peak at bout $1.6 billion (US) around 2008.

From Mine to Market

Once the rough diamonds are mined and processed at the Ekati and Diavik mines, they are transported to Yellowknife, where each company has its own sorting and valuation facility. Under the Canada Mining Regulations, before the diamonds are permitted to leave the NWT, each company must have their diamonds sized and pre-sorted for valuation by the Canadian Government Diamond Valuator (GDV). This process happens 10 times per year, approximately every five weeks. Although mining royalties are based on final sales, the GDV's valuation provides assurances to Canada that values are known before the diamonds are exported. The Valuation is also required for Certification under Canada's Kimberley Process Legislation, The Export and Import of Rough Diamonds Act, before export.

In the case of Diavik, that production is split 60%- 40% before valuation, since each of the JV partners markets its own diamonds independently. Aber's share then goes to Toronto, where they are sorted for final sales to Tiffany & Co., their primary customer, as well as to other clients in Antwerp. Rio Tinto's share goes to Antwerp, where that company, along with BHP-Billiton and Aber Corporation operate their own sales and marketing facilities and where each company can directly access the established world market.

Under an arrangement with the Government of the Northwest Territories, Ekati and Diavik make approximately 10% by value of their respective productions available to three of the cutting and polishing factories in Yellowknife.

Value Added in Canada

There are four cutting and polishing factories in Yellowknife. Three have been opened with the assistance of the territorial government's Canadian Arctic Diamonds Certification Program and they include Sirius Diamonds, Arslanian Cutting Works NWT Ltd. and Canada Dene Diamonds. Each company has established a partnership with a international diamond cutting firm and rough diamonds for these operations are supplied by BHP-Billiton and Rio Tinto Diamonds. The fourth NWT-based company is Laurelton Diamonds, which is a wholly-owned subsidiary of Tiffany & Co. of New York. Laurelton has been set up primarily to cut and polish diamonds under the purchase agreement between Aber Diamond Corp and Tiffany.

Several other independent factories have been opened in Vancouver, Toronto and Matane. These companies are cutting and polishing Canadian diamonds and diamonds from other sources obtained through the Antwerp Market.

Producers and manufacturers alike operating in Canada are interested in maximizing economic opportunities and taking advantage of whatever premium the Canadian Diamond might command in the market place.

To date, perhaps the most well-known has been the Polar Bear Brand marketed by Sirius Diamonds. BHP-Billiton has developed the Aurias Brand and is also pursuing the establishment of "Canada Mark" as their corporate guarantee of Canadian origin.

Neither Diavik, nor Rio Tinto has indicated the intention to pursue branding as a means of marketing their diamond production, other than through their established clientele. At this early stage in the Canadian industry, it is difficult to state categorically the extent to which a premium exists on Canadian diamonds in the market place. Some diamontaires, however, have reported incremental price advantages on some Canadian rough assortments, ranging from 5% to 20%.

The quest for maximizing value-added from Canadian diamond development and production has created many new business opportunities. Throughout its history, Canada's mining industry has been highly successful and is a leading exporter of related technology and expertise. In the case of diamond mining, the industry is providing high-paying, high-tech jobs and other downstream benefits that have come as a direct result of the development of Diavik and Ekati. For example, at Diavik, there are numerous northern businesses providing services to that operation that are either new enterprises, or have expanded substantially because of their work with Diavik. Similar partnerships exist at the Ekati operation. Canada recognizes those benefits as it pursues new ventures in the industry.

Summary

Canada is the first developed country where producing companies are independently marketing the full range of diamonds. We have major exploration potential for new kimberlite discoveries, so our prospects for new development are very positive. We recognize that the industry is highly mobile and advancing rapidly in new technology and new opportunities. Canada has a strong competitive advantage in world mineral development and it is essential that we preserve that advantage as our diamond industry grows and matures.

   



Erinites @ Thu Apr 14, 2005 5:06 am

http://www.miningnorth.com/links/default.asp

http://www.ainc-inac.gc.ca/ps/nap/diamin/candiam_e.html

http://www.highbeam.com/library/doc0.as ... d=&teaser=

   



1964-D-Peace @ Thu Apr 14, 2005 5:13 am

Took too long writing,... Time does fly when you're having fun.... ^_^'

Ah well, let's just reaffirm that the diamond mining industry is BIG. Maybe not as big as nickel, but certainly more appealing to the eye.

   



angeleyes @ Mon Apr 25, 2005 9:47 pm

What do you want to know? My son is presently in the NWT on a diamond cutting course.

   



canadadiamonds @ Wed Apr 27, 2005 12:16 pm

Canada is a major player on the world diamond markets. The discovery in the Canadian arctic changed the diamond industry. It is the first time that Debeers does not have a exclusive monopoly on the diamond supply market. Truly a revolution.

Our company sells Canadian diamonds on a global scale. Our clients demand a ethical, environmental and socially conscious alternative to African and potentially bloodshed diamonds. The growth in the Canadian diamond industry is just beginning.


John Marusenko
Sales Manager
Canada Diamonds Inc.
http://www.canadadiamonds.com
sales@canadadiamonds.com
tel: 604-618-6807
toll free: 1-888-790-4244

Mailing Address:
Suite 359 - 5525 West Boulevard,
Vancouver, British Columbia, V6M 3W6

Office Locations:
2nd Floor, 5050 Kingsway, Burnaby, BC, (Metrotown Office)
Suite 101, 2145 West Broadway, Vancouver, BC, (Broadway Office)
Suite 708, 1155 West Pender, Vancouver, BC, (Downtown Office)

   



usababe @ Wed Apr 27, 2005 12:30 pm

cool...what girl doesn't like diamonds? I saw the Hope Diamond at the Smithsonian...wow!!!!

   



flyman01 @ Wed Apr 27, 2005 12:35 pm

My wallet agrees with the idea of diamonds being a girls best friend ....arghh

   



Knatted @ Sun Nov 20, 2005 5:06 am

There is a diamond cutting school opening in the spring 2006 in Matane Québec. A website should be going up with all the info and course discriptions sometime in December or January. I'll update once it is up.

Recent diamond news outside of the N.W.T: Ashtons claim up in the Otish mountain region of Québec looks very good and though there is no official word or fixed date for a mine opening it seems to look like a very green light to me. I excpect we will have an anoncment soon.....
DeBeers Victor project in Ontario is in the final stages of paper signing and word is there will be a mine with in the next year or two. They are already taking applications and have established their HQ out of Timmins.

Ontario has one major diamond mfg and a few small contract and recutting services. Quebec has one major diamond mfg one minor mfg and one contract and recutting service that works both in diamond and coloured stones.

   



ShepherdsDog @ Sun Nov 20, 2005 3:40 pm

Show your wife you care by getting her a

Image

Or buy the diamond home kit for her. All you need is a peice of
Image

Put it under pressure using

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Then apply some heat
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All of this combined with a whole bunch of

Image

will eventually get your lady love her diamond. In the mean time get used to sleeping on the

Image

because she will likely fail to see all the time and effort you went through to make this diamond a truly deep expression of your love. She'll likely demand that you buy one of those pre made ones from DeBeers. Just so you can get back into your

Image

   



Blue_Nose @ Sun Nov 20, 2005 3:43 pm

A guy I went to school with is on a workterm up there with Diavik... I applied for the job, but luckily I ducked out in time.

   



ziggy @ Sun Nov 20, 2005 4:14 pm

We will pass Africa in diamond production,de'beer's can go suck the hind tit.

   



bossdog @ Sat Nov 26, 2005 1:03 am

I was a technical consultant for Kingland Ford in the NWT. The Kings own pretty much all of the southern NWT. I do know one thing, a good chuck of their revenue comes from supplying those massive 10 foot tires for those trucks that they use in the mines.

   



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