Blog
June 2022
Diamond Beneficiation in Canada
Jon Phillips
Canada is a resource-rich country, diamonds are a relatively small component of our overall natural resource exports. In 2020 the top five natural resource exports of Canada by value were gold, iron ore, coal, copper, and potash. In 2020, Canada exported approximately $300 billion in natural resources and diamond exports which are part that were approximately$1 billion, or less than one percent of resource exports.
However, diamonds have been located in some of the most northern and often inhospitable locations in this vast country. While the impact of diamonds on the economy as a whole may seem small, they have been critical to the sustainable development of many northern communities. These small towns suffer from harsh weather, isolation, and a lack of employment opportunities, so diamonds have been instrumental in their success in the last two decades.
Most diamonds that are mined in Canada are cut and polished in other countries. All mined diamonds that leave the country are taxed before they can leave. They are taxedat the rough value established at the time of export – so in 2020, the export tax for diamonds amounted to around$40 million. Canada's attempts to develop its own cutting and polishing industry have had mixed, but mostly disappointing, results. There are new attempts to revive the industry under revised conditional governmental rules. In Canada, the provincial or territorial governments have the autonomy to establish the regulations and guidelines within their jurisdiction. The local provincial and territorial governments mandate that mining companies sell up to 10 percent of the mined diamonds by value to local manufacturing companies, assuming that such demand actually exists. In reality, the demand has been far less than 10 percent, and the local cutting industry has not really gotten off the ground in more than 20 years.
But the impact of diamond mining far outpacesjust the taxes paid to the governments involved. Each mining company contributes to the local communities by supporting infrastructure, employment opportunities, andoutreach programs. Each mining company every year produces a Socio-Economic Monitoring report or SEM. The SEM outlines the commitments and opportunities availed to the northern communities that they are involved with. As an example, the Rio Tinto SEM for 2020 relates figures that they employ 1100 people at Diavik mine of which 486 are northerners,andthat Diavik has designed and implemented a “Commitments to Communities” training for supervisors, superintendents, and managers. Rio Tinto has also awarded over $250,000 in local scholarshipsfrom the high school level up to the university level.De Beers Group also announced for 2022 it will award 14 new scholarships to Canadian women entering science, technology, engineering, and mathematics (STEM) or similar subjects at universities and colleges in Canada.
All mining companies of Canadian Diamonds offer assistance to their employees should they need it and Arctic Canadian Diamond Company (ACDC) is no exception and offertheir employees support through their“LifeWorks Employee & Family Assistance Program”, which includes a wide range of resources, such as counseling for employees and their families, stress management, support for those struggling with addictions, and work-life balance practices.
There are infrastructure benefits from all the mines. It was announced the Government of the Northwest Territories (GNWT) has partnered with the Gahcho Kué Mine (De Beers and Mountain Province) to build a bridge at the Redknife River crossing on the Mackenzie Highway that will restore fish passage for migratory species. In this unique and mutually beneficial partnership, Gahcho Kué will contribute $9.5 million, with the GNWT pledging the balance of costs.
he world is noticing the way our mines are working with local communities and groups. De Beers Group and Mountain Province Diamonds, Gahcho Kué Mine joint venture partners, were honoured with the 2022 TSM Community Engagement Excellence Award from the Mining Association of Canada (MAC). This is in recognition of the collaborative relationship between the mine and the Indigenous community members of Ni Hadi Xa (NHX). Tom Unka, NHX Governance Committee Chair, said: “Gahcho Kué presented an opportunity to build a new kind of relationship with the mining companies and a new way of working together. Ni Hadi Xa means ‘people watching the land together in our local Chipewyan language and that is what we are doing at Gahcho Kué.” Gahcho Kué Mine also achieved ‘AAA’ standing in six key areas during the 2021 TSM Performance Report published by MAC. ‘AAA’ is the highest standard in the TSM rating system.
May 2022
Facts and Myths About Canadian Diamonds
Canada has been producing diamonds since 1998 and in just that one year Canada became a global force in diamond production. Since then,Canada continues to be a top global diamond producer and commercial diamond discoveries have occurred in the Northwest Territories, Nunavut, Ontario, Quebec and most recently, in Saskatchewan.
Remarkably, after nearly 25 years of diamond production in Canada, the Canadian diamond production industry remains somewhat of an enigma to many. Here we provide some facts and dispel some myths about diamonds and the Canadian diamond production industry.
#1 – Fact - In 2019, Canada was the world's third-largest producer of rough diamonds by value (12.5 percent of world production) and volume (13.5 percent of world production). (NRCAN)
#2 – Fact - Canada's total primary exports of diamonds were valued at $2.21 billion in 2019. (NRCAN)
#3 – Myth - White is the most common colour of diamond.
- Most diamonds are yellow, brown, and black. The rarest of all diamond colours is white – also known as colourless. (Government of the Northwest Territories)
#4– Fact - The largest diamond found in Canada was at the Diavik Mine in the Northwest Territories. Dominion Diamonds billed the 552.74-carat yellow diamond as the largest diamond ever found in North America. (CBC)
#5– Fact - Most Canadian diamonds are exported to India, Belgium and Botswana. (NRCAN)
#6 – Myth - All Canadian diamonds are laser inscribed with a unique identification number and marking denoting it as Canadian.
- Only some Canadian diamonds are laser inscribed. Canadian diamonds that areprocessed and sold under the rules of the Canadian Diamond Code of Conduct are laser inscribed and trade marked to denote the diamond is of Canadian origin.
For more information about the Canadian diamond industry and “Diamond facts” here is a link to the Natural Resources Canada website and Canadian diamond facts.
April 2022
Since 1991 I have been working and managing, together with my sister Luisa, a jewelry store in Milan, Italy, founded by our grandfather in 1926. In 2005, to meet the needs of consumers who were looking for greater traceability and transparency in the diamond market and also for our needs ethically, we have decided to import diamonds from Canada. We were the first in Italy. A few years later we decided to underwrite the cdcd to offer customers greater reliability on the origin of the stones. Today most of the jewelry line we founded, called "Ethical Jewels", features Canadian diamonds. The certainty of knowing that our diamonds come from a country like Canada allows us to satisfy our aspirations and those of our customers, of fairness and ethics.
Have a nice day.
Francesco Belloni
Gioielleria Belloni presenta,
ETHICAL DIAMOND e ETHICAL GOLD
IL BENE PIU' PREZIOSO E' LA DIGNITA'.
www.ethicaldiamond.com
www.ethicalgold.it
March 2022
Why is Vantyghem Diamond a signatory to the Canadian Diamond Code of Conduct?
Vantyghem Diamonds wants to be a responsible corporate citizen. It is committed to complying with all applicable national laws and also applying the highest ethical standards. The CDCC is a part of making this whole. While we relentlessly hone our art of diamond grading, we enjoy breaking out of the mold and innovating how customers experience our products. We created a complete diamond authentication and presentation system that keeps relevant grading information at a glance. Being a signatory to the CDCC allows us to complete this presentation and keep chain the custody intact.
With the help of the CDCC, Vantyghem Diamonds as a signatory brings integrity, trust, transparency of ethically sourced Canadian diamonds to the global industry and retail consumer. We are committed to our customers and the industry to ensure Canadian diamond claims. We are stewards of the Canadian diamond industry and it is our responsibility to uphold all that are involved from mine to consumer. Being a signatory allows us to be a part of this process.
Kevin Vantyghem, B.Sc., GIA Diamonds Graduate
VP of Vantyghem Diamonds
Canadian Jewellers Association Board Member
Young Diamantaire Member
GIA Alumni
American Gem Society Supplier Member
________________________________________
Toll Free: 877 590 2643 ext. 1
Mobile: 519 591 5727
www.vantyghemdiamonds.com
Kitchener, Ontario, Canada
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March 2022
When, why, and how the Canadian Diamond Code of Conduct was born.
In the Spring of 2002, (yes, that is 20 years ago) Canada’s Government Agency, the Competition Bureau, invited select members of the diamond mining and jewellery industries, the Canadian Jewellers Association (CJA), Jewellers Vigilance Canada (JVC), and the Royal Canadian Mounted Police (RCMP) to a round table to explore the possibility of a voluntary code of conduct for Canadian mined diamonds.
Canadian diamonds had emerged from Canada’s north and catapulted Canada into the global diamond spotlight. Very exciting times for Canada and in particular the North and the communities which found themselves with new opportunities.
At the time only two mines were producing or about to produce diamonds- Ekati and Diavik. The cutting and polishing industry was developed in the Northwest Territories truly bringing the concept of mined, cut, and polished Canadian diamonds to the marketplace albeit the vast majority of Canadian rough diamonds were cut internationally.
As is often the case, there was concern that there could or would be diamonds claimed as mined in Canada but were not from Canada at all. Although the Kimberley Process Certification Scheme launched the same November in 2002 to help eradicate “conflict diamonds” from the marketplace, the motivation behind the Voluntary Code for Authenticating Canadian Diamond Claims (Canadian Diamond Code of Conduct) was to give assurance to consumers that diamonds claiming to be mined in Canada were indeed from a Canadian mine. To that end, the Canadian Diamond Code Committee (CDCC) invited a consumer representative to join the administrative body. That consumer rep remains a critical part of the CDCC to this day.
Through the last twenty years of persevering many ups and downs, the Canadian Diamond Code has survived with the CDCC authenticating requests from consumers by obtaining or confirming required information under the Code to track the diamond from the Signatory retailer up to the mining company.
In an ever rapidly changing industry, with all of its challenges, the Code has remained a constant reaffirming our commitment to the needs of our Signatory members, and to working collaboratively to serve the Canadian diamond industry with integrity, trust, and transparency, today and well into the future.
Feb 07, 2022
Why I became a signatory:
When the Canadian Diamond Code of Conduct (CDCC) was conceived the Canadian diamond mining industry was very young. I recognized the need to have an independent 3rd party to provide authentication of diamond origin. I subsequently become a code signatory.
The CDCC has provided this service for many years giving peace of mind to consumers while simultaneously protecting the credibility of all Canadian diamond stakeholders.
The fear is that non-Canadian diamonds may infiltrate into the Canadian market thereby threatening the integrity of the Canadian mining industry as a whole.
Present day, Canada has a diminishing resource with some diamond mines already closed.
The CDCC’s role is as important today as it was in the beginning and is why I continue to remain a code signatory.
Geoffrey Beattie
Owner
