Diamond Mining in Canada

_{Diamond Exploration Camp in Canada}

Canada is one of the top diamond producers in the world. This might sound uncanny, for much of the 20th century, and for the decades prior, the continent of Africa was and still is the dominant force when it comes to the world of diamond, which is the most valuable gemstone in the world. The Northern American nation was a newer entrant to the diamond trade, following the later entries of what have become the major diamond players: Russia (then the Soviet Union), and Australia. In this post, we will provide an expansive overview of diamond mining, and trade: in terms of its geographic character of the country, the type of trade in this nation, to some of the distinguishing characteristics of diamond mining, notably its growing significance as an ethical source in the world of diamond mining.

The Lac de Gras Discovery: A New Frontier of Diamond Mining

Diamond mining in Canada was a late start to the lucrative industry. Whilst it was long suspected that the vast Northern American nation was a potential source of precious stones and other valuable natural resources. Things started moving following the discoveries of major kimberlite deposits. The failure to uncover these rich deposits were caused by the geography of the region, much of it hostile; a product of the unforgivingly cold winters and glacial natural environs. Things begin to change with discoveries of diamond deposits in parts of Canada: North Western Territories, Ontario, Quebec leading the way. The first in this list even including areas that are a part of the Arctic tundra.

A noteworthy event in the history of diamond mining in Canada was the story (a real one) of the Canadian geologist Chuck Fipke who discovered a diamond in Lac de Gras in the Northern Western Territories, which set in motion a new gold (or diamond) rush of modern times. What started out as a search for gold and copper deposits, as a part of the Kennecott Copper mining company, he was a curious character, known for his animated run-in with tribes of natives from the untamed region in which he worked in. After a number of years working in the field, where he developed his expertise in mineralogy, whilst relying on the works of the geologist John Gurney, whose mineral chemistry played a key role in the discoveries that Fipke would go onto making during his study of the diamondiferous (diamond-rich) kimberlites formations in Northwestern parts of Canada (1). Fipek’s study of kimberlite pipes under technology that took advantage of the framework provided by Gurney led to the discovery of mineral precursors of a diamond. Having developed his expertise in mineralogy in relation to the local environs, and having established his company Dia Met Minerals. Following some less successful expeditions in Colorado, America, he eventually landed in Canada to continue his exploration.

Up north the great diamond mining company De Beers had already set up shop and were using their own mineral identification methods (2). Using the insights and practices of the great mining company and with the aid of Stewart Blusson, an expert in regional mapping and surveying. Who had developed new but effective targeting methods, which Fipke was able to employ in his work? Following a long and arduous period of study, which also involved hundreds of years of overground surveying he eventually landed on Lac de Gras in North Western Canada: a hostile region, filled with lakes and rock and not too far from the Arctic Circle. After a lot of hard work that stretched for months, Fipke and Blusson eventually identified kimberlite pipe with commercially viable levels of diamond concentrations. His company soon went public, and with information of the extent of the diamond reserves became known, shares in Dia Met blew up as the first diamond mines in Canada became a known quantity. Fipke eventually sold out to BHP whilst maintaining a degree of control. So this is the short summary of the beginnings of the diamond mining and trade in Canada, one that began with a few good men, a lot of drive, expertise to back it up and relentlessness.

_{Lac de Gras Lake}

The Role of EKATI Mines

Known as Canada first official mine, the Ekati mine is located in the Lac de Gras region of the Northwest Territories. A designated area stretching for nearly 28 million hectares the mining potential of the mine and surrounding regions is among the biggest in the world. Some of the notable open-pit mines from which the majority of the diamonds are sourced are named after local exotics and species: Bear tooth, Fox, Koala, Koala North, Misery, and Panda. The EKATI mines, which before were the open-pit mines that the Fipke and Blusson began working in came to known, came to be managed by BHP Billiton. With work officially starting under new leadership in 1998, and production of diamonds continuing until 2013. In the process of making Canada the third biggest diamond producer in the world after Botswana and Russia.

The rise of Ektai mines as noted was due to the pioneering work done by Fipke and Blusson during their Dia Met Minerals days. With their special efforts in surveying and exploration, and later successes in purchasing stakes in the region’s mineral claims, they were able to partner with BHP Billiton, the Anglo-Australian mining and resource giant in 1989. Following the success of their operations in identifying diamond deposits in the region, The Core Zone joint venture (JV) agreement between BHP Billiton, Dia Met, the latter represented by Charles Fipke and Stewart Blusson was signed in 1990.

With the entry of the diamond resource giant BHP, which was able to mobilize its vast financial power and resources work accelerated. In terms of land surveying and environmental data collection, and eventually submitted an application for local government approval. Following the approval of the project, in 1996, construction of the mine began a year later. Later the NWT Diamonds project, as it was known until then, was renamed the Ekati Diamond Mine project in 1998. With large open-pit mining operations starting in the same year August 1998. The pace of the development and operations was so rapid that the mines soon began producing diamonds that hit the million-tonne mark in almost a year. The Ekati mines will hit peak production in 2000, producing an astounding 2.77 million carats of diamonds (3).

The Appeal of Canadian Diamonds

In a world where many of the precious diamonds are sourced predominately from conflict-oriented regions in Africa, where concerns for the ethics of the diamond trade, the danger of conflict minerals, and worries over the efficacy of frameworks such as the Kimberley Process, owing to the fact that many of the signatures of the agreement are those who head unstable, authoritarian governments in Africa. Canadian diamonds have hence come to command a unique taste in the market for these gemstones. For despite the prevalence of these many safeguards and growing awareness, environmental and human rights abuses when it comes to the diamond trade are still pervasive in unstable parts of the world, and a developed North American nation is viewed as a safe bet. And the reasons for this are straightforward:

Characteristics of Canadian Diamonds

Canadian diamonds are produced from diamond mines that have and adhere to some of the world's best environmental standards.
Owing to the dominance of major diamond producer and the lack of artisanal mining and smaller, often poorly regulated projects, the profits made from the sale of the diamonds, and other returns from the trade go to legitimate interests: the companies key stakeholders and investors. As opposed to militias, corrupt dictators, and criminal groups who may have obtained the diamonds through forced labour, theft or other forms of exploitation.
Canadian diamonds are clearly certified, and the certification process itself is more authoritative, as the country’s legal and institutional environments dictate that this be so. Which allows the stones to be tracked from the mine through manufacturing, as the Kimberley Process demands.
Canadian mines, under government laws, are required to closely monitor the import and export of rough diamonds (3).

Canadian Diamond Mining Today

From the 1990s onward, with the discovery of the new mines in the North-Western Territories, diamond mining in Canada has been on an upward trend. In addition to the EKATI, Canada boasts a number of world-class diamond mines: Canadian Diamond Mines: the Diavik Diamond Mine, the Jericho Diamond Mine and the Victor Diamond Mine to name some of the most prominent. Which have helped maintain Canada’s strong position in the industry. By the midpoint of the 2000s, the three major diamond mines were able to produce over 13 million carats of top quality diamonds per year. This placed Canada as the third-largest producer of diamonds in the world [4]. The activity associated with the production of diamonds brought billions of dollars in trade to the Canadian economy. Whilst output has lessened in more recent times, the country’s position remains in a strong position.

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