Prime Minister Harper to attend opening of Jericho Diamond Mine

Prime Minister Stephen Harper will attend the official opening of the Jericho Diamond Mine project on Thursday, August 17, 2006.

The Jericho Mine, which is located 350 kilometers southwest of Cambridge Bay, is Canada’s third and Nunavut’s first diamond mine. The $120 million project is owned and operated by the Tahera Diamond Corporation, a Canadian-based mining company. It is estimated this project will produce 375,000 carats per year and 2.6 million carats over the life of the mine.

The Prime Minister will be joined by senior company officials and representatives of the Government of Nunavut at the ceremonies.

“I am proud to have this opportunity to take part in a significant event in Nunavut’s history,” the Prime Minister stated. “This mine project will provide jobs and benefits for the people of Nunavut and will spur continued interest in Canada’s rapidly growing diamond mining sector.”

A backgrounder on the Canadian diamond industry is attached.

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BACKGROUNDER

Canada’s Diamond Rush

• Canada the world’s third-largest diamond producer by value.  Diamond mine production in 2005 is estimated having exceeded 12 million carats for a value of C$1.7 billion.

• The diamond industry is the largest contributor to the Gross Domestic Product of the Northwest Territories, providing more than 50 percent of the amount.

• Canada’s rise to prominence in the diamond industry began in 1998 when the Ekati Mine in the Northwest Territories came into production.

• Currently, Canada’s production comes from three mines: the Ekati mine in the Northwest Territories, Diavik mine in the Northwest Territories and the Jericho mine in Nunavut.

• More diamond mines are scheduled to begin production in the coming years. These include the Snap Lake mine in the Northwest Territories in 2007, the Victor mine in Ontario in 2008 and the Gahcho Kué mine in the Northwest Territories in 2011.

• The industry currently provides over 3,300 jobs in Canada, 35% to aboriginals.

• The mines’ respective share of Canada’s production, on a carat basis, is as follows: Diavik (65%), Ekati (31%) and Jericho (4%).

• Canada’s diamond mines are helping to build a strong economy and prosperous future for many regions, including Aboriginal communities and the major Canadian cities that serve as hubs for financial markets, equipment manufacturing companies and allied industries.

• Canada also has a growing diamond-cutting and polishing industry comprising five factories operating in Yellowknife, Vancouver and Matane (Quebec). These operations have an important training component that includes a number of Aboriginal apprentices.

• Across Canada, diamond exploration expenditures involving 123 companies reached $251 million in 2005, which was mostly spent in the Northwest Territories, Nunavut, Saskatchewan, Quebec and Ontario.