Canadian Diamonds

Canadian Diamond Mines

Since the 1960s, mining companies have been seeking diamonds in Canada, but it wasn’t until kimberlite – an igneous rock that is the most common diamond host – deposits were discovered in the 1980s that the prospect of Canadian diamond mines became feasible. The Ekati mine opened in October 1998, and its productivity thrust Canadian mining into the forefront of the diamond industry.

The second large mine, Diavik, opened in January 2003, and three more mines are scheduled to open within five years. Once fully operational, it is expected that those mines will help Canada become the world’s third-largest producer of diamonds (by value), just behind Botswana and Russia. Today, more than ten million carats of diamonds are mined in Canada’s Northwest Territories every year, totaling more than $2 billion. This makes Canada one of the top ten diamond producing nations in the world, and diamond mining accounts for approximately 20% of the Northwest Territories’ gross domestic product (GDP).

Benefits of Mining in Canada

It is expensive to mine diamonds in Canada, particularly in the north where winters are harsh and the environment is particularly fragile. Companies must take into account the delicate ecological balance, even working around caribou migration patterns. Yet Canadian diamonds are of such high quality that the mines continue to be extremely profitable, regardless of the additional measures that must be taken to protect the environment.

The federal government is benefiting from the diamond production through increased business and income taxes, as well as the international trading of rough stones. The population, particularly native aboriginal peoples, has seen a rapid increase in high-paying jobs, both directly in the mines as well as in cutting and polishing facilities.

After Diamonds Are Mined

Once the rough stones are extracted, they are distributed to refinement facilities to be cut, polished, and graded for quality. There are such facilities in Canada, including Winnipeg, Toronto, and Vancouver, but the majority of Canadian diamonds are exported to Belgium and the United Kingdom, where the facilities at Antwerp and London are renowned for their finishing. After being cut and polished, the stones are redistributed throughout the world – including returning to Canada – for sale as brilliant pieces of jewelry. Canada also imports gems from the United States, India, and Israel.

One point of controversy exists when Canadian diamonds are shipped overseas for cutting and polishing. When the stones are returned, foreign stones may be mixed in with the shipment, including controversial blood or conflict diamonds that profit rebel groups in war-torn nations. Canada does participate in the Kimberly Process, a certification regimen that seeks to eliminate the trade of illicit diamonds that fund revolts, but once conflict stones are cut and polished, they are indistinguishable from legitimate diamonds.

Choosing a Canadian Diamond

For many Canadians, a Canadian diamond is their top choice for an engagement ring. This ensures that they are supporting their national economy by helping fund jobs and government programs, and it also guarantees them a high-quality stone due to the exceptional value of diamonds mined in their homeland. Non-Canadian buyers are also requesting Canadian diamonds because of this extraordinary quality.

As yet, there is still controversy about how to certify these Canadian diamonds. Some certification groups consider any stone mined in Canada to be a genuine Canadian diamond, while others take into account where the stone was cut and polished. To guarantee that you avoid purchasing a diamond that is labeled Canadian but may in fact be a conflict stone, always request to see the paperwork that details the diamond’s origin, refinement location, and other steps along its way to the jeweler.

Still new to the international market, Canadian diamonds demonstrate their brilliance with exceptional quality and value. For many couples, where a gemstone originated is a key factor in their selection of an engagement ring, and Canadian diamonds provide an unexpected alternative to far-away stones.