Overview
In late 1991, the announcement of a diamond find in the Lac de Gras area led to a staking rush in the Northwest Territories and what is now known as Nunavut. Since then, the country's first two diamond mines (Ekati and Diavik) have entered production and exploration has proceeded across the country at a rapid pace. We now have significant finds in Nunavut, the Otish Mountains in Quebec, and Fort a la Corne in Saskatchewan.

In fact, more than 30 per cent of the world exploration budget for diamonds is targeted at Canada.

Canada has produced a highly successful mining industry that is a leading exporter of technology and expertise. In the case of diamond mining, the industry is providing high-paying, high-tech jobs and other spinoff benefits. For example, at Diavik, there are 15 northern businesses providing services to that operation that are either new enterprises or have expanded substantially because of their work at Diavik. A similar scenario is true for Ekati.

Diamond Mining in the North
Canada's North has two operating diamond mines - the Ekati diamond mine and the Diavik diamond mine, both located in the Northwest Territories - and two other diamond projects either in or about to enter the environmental assessment stage. The Jericho diamond project (Tahera Corporation) located in Nunavut, filed its final Environmental Impact Statement with the Nunavut Impact Review Board on January 27, 2003. De Beers Canada Corporation, owners of the Snap Lake diamond project located in the Northwest Territories, awaits approval from the Mackenzie Valley Environmental Impact Review Board before it can proceed to permitting. That approval is expected in the Fall of 2003. Both projects are scheduled to begin production during the 2004 to 2006 time frame.

At a combined capital cost of Cdn $2.1 billion, Ekati and Diavik together, will produce annually approximately 12 million carats valued at Cdn $1.3 billion.

With the addition of the Snap Lake Project (approximately 1.7 million carats per year with an estimated value of Cdn $250 million) and the smaller Jericho project (approximately 375,000 carats per year with an estimated value of Cdn $25 million) it is forecast that by 2006 Canada will be the third largest diamond producer by value in the world following Botswana and Russia.

Ekati and Diavik together employs a workforce of approximately 1,100 people of whom more than 60 per cent are Northerners and more than 30 per cent are Aboriginal. In addition, annual purchasing by the two mines will be in the order of Cdn $450 million range with the bulk being made in the North.

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