Future of Canadian mining in doubt

A new report from Bloomberg found that every mine in Canada produces stones that fall well below the global average price per carat.

In addition, Canadian stones have tended to be smaller and lower quality than expected. This sector in particular is facing increasing competition from synthetic diamonds, which are cheaper to produce and sell.

Diamond mining is still a young industry in the country, with the discovery of kimberlite in its Northwest Territories occurring in 1991. But while there were once high hopes for the region, two of its main mines, Ekati and Diavik, are now at the mature end of their life cycle and nearing closure. Several other major mines have lost significant market value in recent years and have changed ownership several times.

Establishing new mines has been hampered by the high cost of labour and the remoteness of the sites; northern Canada is frozen most of the year with temperatures as low as -50^oC and little existing infrastructure.

However, recent technology breakthroughs including drones, autonomous vehicles and sensors could be the key to overcoming some of the challenges.

A revival of the CanadaMark brand, emphasising the ethical practices and positive associations consumers have with Canada itself, is also taking place.

Source: Kimberley Process