About Diamonds

Diamonds

Diamonds are formed from carbon at depth within the earth. They are brought to the surface with a number of different "indicator" minerals during volcanic activity. The diamonds are encased in a solidified rock mass known as kimberlite pipes. Subsequent erosion (glaciers) spreads sand-sized particles of indicator minerals over areas far away from the kimberlite pipes. Kimberlite pipes tend to be softer rock than the surrounding country rock and erode more quickly and are often covered by lakes.

Demand for Canadian diamonds is increasing on the worldwide market and presently represents an annual 1.7 billion dollar industry. It's estimated that by 2007 Canada will become the world's third largest diamond producer accounting for a significant percentage of the world's diamond supply. Its domestic diamond production in 2002 measured over 4.5 million carats increasing by 2003 to 11.2 million carats. Canada's Northern economy is now largely fueled by the diamond industry and is considered the single largest private employer in the North. In 2001, over 3.3 million carats were mined in Canada's North Country at an average of $228 per carat - third highest in the world.

In October 1998, the opening of Canada's first diamond mine, Ekati, was announced marking the birth of the Canadian diamond industry, followed closely by a second mine, Diavik, with projected 20-year life expectancy and an estimated maximum production of up to eight million carats annually.

With the success of these mines and an excellent working relationship with the Canadian government, a valuable technologically advanced infrastructure has been established with processing plants and an established marketplace paving the way for increased world-class diamond production.

Canada and Canadian mining companies are leading the way in integration of sustainable practices both domestic and abroad being the first in the world to develop and integrate a national environmental policy.

Canada has emerged as a primary diamond interest on the international market. Canadian diamonds are high-quality and have set the stage for a healthy long-term resource based industry.