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Canadian Diamonds - Some Dazzling Facts and Figures

By Marc Davis, Managing Editor
January, 2003

At a recent Christmas party, I was quite amused by the look of surprise on the faces of several guests when someone mentioned that Canada produces some of the world's best-quality diamonds.

"Canada has diamonds?" was the astonished reaction of one pretty young lady, who seemed concerned that she was missing out. So, I decided that now might be an opportune time to review Canada's fast-emerging status as a global diamond producing powerhouse. Even since the quixotic Dr. Chuck Fipke made Canada's first historic diamond pipe discovery a little over a decade ago, events have unfolded quite dramatically. And so fast, in fact, that still many Canadians are oblivious to the glittering treasures that lie buried in Canada's back yard.

These epic discoveries now include over U.S. $20 billion of in-situ diamond reserves in the Northwest Territories, alone. And there's plenty of reason to believe that other multi billion dollar deposits will soon be revealed in other regions, such as central Quebec, the hinterland of Ontario, the new northern territory of Nunavut and even Saskatchewan.

So, let's recap what's happened since Canada's first-ever diamond mine, the Ekati Mine, came into being in 1998. This mine's production, alone, quickly established Canada as the sixth largest diamond producer in the world within two years. The mine generated U.S. $454 million in revenues in 2000. And within the next three years, two other mines are expected to open for business in the same region, the Northwest Territories. Together, the Diavik Mine, the Snap Lake Mine, and the Ekati Mine will rank (in that order) as the three richest diamond deposits in the world! By the year 2007, they are expected to produce 15 million high-grade carats per annum, generating almost 20 per cent of global sales for gem-quality diamonds. With the Snap Lake Mine coming on stream in 2005, this will effectively make Canada a more prolific producer of gem-quality diamonds than even South Africa. Only Botswana and Russia will still be able to boast of greater production. And many analysts argue that new discoveries elsewhere in Canada will lead to the generation of about half of the world's production within two decades.

Moreover, Canada stands to benefit immeasurably from a new international preoccupation with 'politically correct' or 'bloodless' diamonds. It is estimated that up to U.S. $10 billion worth of 'blood diamonds' have been sold in the past decade. Such diamond have been the catalyst for civil wars and devastating political strife in such Third World nations as Sierra Leone and Angola. Indeed, a growing movement, spearheaded by De Beers' Central Selling Organization, is trying to outlaw the sale of such controversial diamonds, which will not be certified as 'legitimate.' New techniques for mapping the unique internal 'fingerprints' of each diamond that is sold in the Western World could form the basis of such a certification program. And Canada's untainted diamonds are likely to become the poster child for this conscientious initiative.

Meanwhile, 2003 is certainly to be an exciting year for Canada' numerous diamond exploration frontiers. Indeed, more tantalizing finds will be the perfect post-recession tonic for Canada's blossoming diamond industry and stock market investors, alike. So stay posted.