Canadian Mine to Market
Commercially viable diamond mining is a relatively new economic activity in Canada. Exploration started in the 1980’s when two geologists, Chuck Fipke and Stewart Blusson, followed indicator minerals back to what they hoped was the source kimberlite pipe. By 1991 they had found what would become Canada’s first diamond mine – the Ekati diamond mine. Ekati officially opened in October of 1998 and is located 310 km (190 mi) north-east of Yellowknife in the Northwest Territories (NWT), and about 200 km (120 mi) south of the Arctic Circle, near Lac de Gras. Canada’s second diamond mine,Diavik, which is close to Ekati was found, not long after the Ekati discovery, and did not come into full production until 2003. Canada now has a number of diamond mines fully operational, closed and forthcoming. With this vast resource of rough diamonds available in Canada,Canada has consistently been one of the top producers, by both value and volume,of rough diamonds worldwide.
The economic benefits have been significant for Canada and the Province/Territories. As an example, GahchoKué, the world’s largest new diamond mine (since 2016),has contributed billions of dollars to Canada's economy and provided over 1,000 new jobs according to a report released by majority owner De Beers.
https://www.nrcan.gc.ca/our-natural-resources/minerals-mining/minerals-metals-facts/diamond-facts/20513.
The remote locations of Canadian diamond mines, the higher costs associated with having some of the world's highest environmental regulations for the mining industry, Canadian standards for wages and regulations for workplace health and safety conditions make it more costly to mine diamonds in Canada than in competing locations. Canada has some of the strictest mining standards in the world and the industry is governed by federal, provincial and territorial acts and regulations across a broad spectrum of subject matter.
The Mining Association of Canada (MAC) has a voluntary program called “Towards Sustainable Mining” (TSM). This program is held in high regard by other countries and other codes of conduct that address issues of sustainability relating to mining.
https://mining.ca/towards-sustainable-mining/tsm-guiding-principles/
While many think of diamonds as gemstones, only a small percentage of production by carats is destined to become jewellery, the rest is used for industrial purposes.
Most of Canada’s exports are sold as rough – not cut or polished in Canada. Canada does however have a small-scale cutting industry. Canadian companies produce mostly gem grade diamonds. Over 95% of the world’s diamonds are cut and polished in India.
https://www.geologypage.com/2019/04/how-are-diamonds-cut.html
Diamonds that are cut and polished and destined to be jewellery are then sold through the same trading centres and possibly back to the country where they were originally mined.
Despite the path back and forth around the world that may be taken by a diamond extracted from a Canadian mine, the Canadian Diamond Code(CDC)has Signatory members in Canada and in other countries, who have committed to ensure that those claims of Canadian diamonds can be traced all the way through the supply chain. Through the commitment of these Signatory members, records are kept and warranties provided. When a consumer buys jewellery from a Signatory member with a diamond or diamonds that claim to be from Canada, those diamonds can be tracked all the way back to the Canadian origin, no matter where it was cut, polished, or manufactured into jewellery.Most CDC Signatories are small, independent retailers.
