Diamond
mining in Canada's North is growing. The Ekati Diamond Mine
in the Northwest Territories (NWT) currently produces 3 per
cent of the world's diamonds by value.
Operated
by BHP Diamonds Inc. and opened in 1998, the Ekati Diamond
Mine in the NWT is now producing slightly over 7,200 carats
per day. According to BHP, total sales in 2000 were approximately
$430,000,000. Preparatory work to begin mining another pipe
(i.e., deposit) in October 2001 is well underway.
The
Ekati mine currently employs 700 full time workers of whom
almost 70 per cent are Northerners (33 per cent are Aboriginal).
The company also purchases approximately $356,000,000 worth
of goods and services each year with almost 80 per cent of
these purchases made in the North.
BHP
Diamonds Inc. is also looking to expand its mining activities
by seeking regulatory approval to mine 3 additional kimberlite
pipes.
In
2003, the Diavik mine is scheduled to begin production. Construction
of this mine, by Diavik Diamond Mines Inc., is proceeding
well. By June 2001, almost 1000 people were working in the
NWT on the Diavik Project at Lac de Gras and in Yellowknife.
Approximately 40 per cent of these workers are Northern residents
from the NWT and Nunavut's West Kitikmeot region. In addition,
over $600 million or approximately 75 per cent of the construction
contracts and purchase orders have been awarded to Northern
companies. The project remains on schedule to begin diamond
production in the first half of 2003.
In
February 2001, De Beers Canada Mining Inc. submitted its license
applications to begin the environmental assessment process
for its proposed SnapLake Diamond Project in the NWT. Production
is tentatively scheduled to begin in 2006.
The
Tahera Corporation is also in the environmental assessment
process for its Jericho Diamond Project, in Nunavut, which
is anticipated to begin production in 2004.
By
2006 when both DeBeers Canada Mining Inc.'s Snap Lake project
and Tahera Corporation's Jericho project are in production,
Canada will produce about 12 per cent of the world's diamonds
by value.
