First Nations benefit from the sale of diamonds as first stones from Victor Mine go on sale
Ontario's first diamonds go on sale
By QMI Agency - April 26, 2010
The first diamonds from an Ontario mine become available for sale, just as demand resurfaces after the global recession.
Play VideoOntario’s first diamonds went on sale on Monday, with industry insiders predicting strong demand for the stones as the industry begins to pick up after the recession.
The 131 diamonds from mining giant De Beers’ Victor mine in Northern Ontario are being sold in Canadian jeweler Birks & Mayors’ flagship Toronto store. The stones have an estimated value of $4 million, with $2 million already polished and the rest uncut. Individual rocks start at $1,400, with the most expensive about $170,000.
“Given the challenging economy, the demand for this collection has been astonishing,” said Birks President and Chief Executive Thomas Andruskevich. “In fact, we have always had great demand for Canadian diamonds, the biggest problem has been supply. “
The global recession hit the luxury goods industry hard, though diamonds are now beginning to regain their sparkle. Strong demand from China and Hong Kong helped drive up exports of polished stones from Belgium, one of the world’s major diamond centres, by 30.1% to $2.64 billion in the first quarter, according to the Antwerp World Diamond Centre.
“We saw very strong demand at the end of 2009 and beginning of 2010 and we are cautiously optimistic,” said Tom Ormsby, director of external and corporate affairs at De Beers Canada. “We see very good things for the diamond industry.”
Canada is the world’s third-biggest diamond producer, though until now production has been focused in the North West Territories. De Beers invested almost $1 billion on developing the Victor mine, located in the James Bay lowlands of Northern Ontario.
The mine has an annual capacity of 600,000 carats and its stones are considered the second-finest in the world after a Lesotho mine in South Africa.
The project is expected to add about $6.7 billion to the province’s Gross Domestic Product over the 12-year life of the mine.
De Beers is now focusing on exploring 15 additional diamond pipes to extend the mine’s lifespan.
“We hope within the next 12 months to find something within that cluster to make it worthwhile extending the life of the mine,” Ormsby said.
The mine is providing about 400 jobs in the province, with about 40% of those going to First Nations people, Ontario Minister of Northern Development and Mines Minister Michael Gravelle said.
The stones are being mined in the province, as well as being initially sold here up until May 1st, when they will then go on tour around the country.
“There is great added value to this all the way down the chain,” Gravelle said.
“It’s something ten years ago, no one would have thought possible,” he said, adding it may also provide additional export opportunities for the province.