Diamond Production Up in N.W.T.

Diamond production has increased in the Northwest Territories. From its 2010 figures, EKATI, Diavik, and Snap Lake—N.W.T.’s three diamond mines—registered an estimated $40 million increase in value in 2011. The overall production of the mining industry in the N.W.T. is pegged at $2.1 billion in 2011 which is nearly a 5 percent increase over the 2010 figures.

The excellent production in N.W.T.’s mines has translated to a wide spectrum of benefits. Pam Strand, President of the N.W.T. & Nunavut Chamber of Mines sums up the advantages: "The N.W.T. mines have turned their production value into significant employment, business and tax benefits for the territory and for Canada." Specifically, the diamond mines have created not only $4 billion in Aboriginal businesses but a record-breaking more than 8,700 person years of Aboriginal employment as well.

The trend seems set to continue as De Beers Canada ventured into a Traditional Knowledge Study Agreement with Deninu Kué First Nation for the Gahcho Kué Project. De Beers owns Snap Lake Diamond Mine. Tom Ormsby, De Beers Canada’s director of external and corporate affairs dubs Gahcho Kué Project as "Canada’s next great diamond mine." The timing couldn’t have been better as most of the mines in the N.W.T. are closing. EKATI Diamond Mine, which produces an average of three million carats of rough diamonds annually, is scheduled to close in seven years. EKATI is Canada’s first diamond mine.

A total of six new mines have been proposed in N.W.T. But to continue reaping the gains, the nation’s diamond industry must seek out ways to prolong the life of its mines. Diavik is already moving towards that end as it goes from open pit to underground mining. This will extend its mine life up to 2020.

The road to continued mining success in N.W.T. is by no means easy as the challenges are very real. Yet, the exploration programs and history of past successes ensure that Canada continues to be a key diamond producer. Tom Hoefer, Executive Director of N.W.T. & Nunavut Chamber of Mines, concludes: "We are in a deficit-reduction situation in Canada, and we are hopeful that governments will understand that putting money into the minerals industry is an investment that provides big returns. We don’t want to miss that window if we are to maximize opportunities to Canada and its residents, particularly in the north, where mining and non-renewable resources are clearly our competitive advantage."