Some consumers are turning to Canadian diamonds in their search for ethical diamonds. Learn how Canadian diamonds are discovered, how they help Canadian communities and how to know if your diamond is Canadian with a GIA Diamond Origin Report.
The discovery and mining of Canadian diamonds is a legendary story of the human spirit overcoming nearly insurmountable odds. Canada’s Northwest Territories, where the largest number of Canadian diamonds are produced, has a subarctic and polar climate. In the icy and snowy northern regions of Canada, it’s difficult to survive, let alone find diamonds.
How were Canadian diamonds discovered?
Canadian exploration geologist Charles Fipke and De Beers were neck and neck in the race to help discover the first commercially viable Canadian diamond resource. Fipke was initially hired by Superior Oil to explore for base metals, gold and diamonds, but when Superior Oil abandoned the exploration plan, he set out on his own expedition with geologist Stewart Blusson. By the time they set out, Fipke and Blusson had learned two things from their work with Superior Oil: De Beers was looking for Canadian diamonds in Canada’s Northwest Territories, but they were looking in the wrong place.
Canada’s two largest diamond mines, the Diavik Mine and the Ekati Mine, are both located in Canada’s Northwest Territories. Illustration: GIA
De Beers found indicator minerals such as garnets, ilmenite and chromite that formed with diamonds in the Earth’s mantle, suggesting diamonds might be nearby. But Fipke and Blusson knew that the minerals in the De Beers search area were carried over by glaciers tens of thousands of years ago. Their true source could be hundreds of miles away. Fipke and his partners needed to find vertical rock formations called kimberlite pipes before the De Beers team did. These formations are the remains of ancient volcanoes that erupted thousands of years ago and brought diamonds and other minerals in magma from deep within the Earth to the surface.
This diamond crystal is embedded in kimberlite, an igneous rock that is carried to the surface from the Earth’s mantle during volcanic eruptions.
Fipke and Blusson continued their search for nearly a decade, traveling hundreds of miles, surveying the landscape from the air and spending long hours in the lab during the winter analyzing samples. In April 1989, the day before their helicopter funding ran out, Fipke looked down from the air and saw a small frozen lake, which he promptly named Point Lake. Its steepness and circular shape reminded him of the kimberlite pipes he had seen thousands of miles away in South Africa. After landing, he found some gemstones, indicating that he was at the top of a diamond-bearing vein. Fipke and Blusson were nearly bankrupt at the time, so they immediately sought financial support from the Australian mining group BHP Billiton to explore the area. The company drilled beneath the lake and found the kimberlite that Fipke and Blusson had been looking for, and soon found diamonds. The Canadian diamond rush had begun.
Ethical Diamond Craze
So many miners flocked to the area that BHP circled the lake with cables to create a field that would interfere with aerial instruments. The discovery of the Point Lake pipes itself was not a huge profit, but it led to the discovery of the Ekati mine, which, like the Diavik mine, is one of the largest diamond mines in Canada.
The Ekati Diamond Mine is surrounded by hundreds of small lakes. It is accessible only by air, weather permitting, and only for short periods of time by ice road in winter. Copyright © 2017 Dominion Diamond Corporation
From the outset, the Canadian government was careful to ensure that mining benefits local people while minimizing environmental impacts. Before mining began, the Ekati project was reviewed by the federal Department of Indian and Northern Affairs, the Northwest Territories government, and four First Nations. The mining company must agree to restore the local environment to its original state after the mine’s useful life.
They built an ice road in northern Canada to transport fuel, equipment and supplies to the diamond mines by truck every winter. The ice road is 500 kilometers long and is open for about two months each year. Copyright © 2016 Rio Tinto.
Exploration and development of the Ekati diamond mining project began in the early 1980s. Construction of the mine began in 1997 and it officially opened in October 1998. The Diavik mine, 30 kilometers from the Ekati mine, was discovered in the 1990s and began operations in 2003. Similarly, the owners of the Diavik mine have promised to “completely and safely close the mine.” All ore, roads and construction materials will be removed, and fish habitat will be protected or rebuilt when the mine is closed. A sign in front of the Diavik mine reads: “For hundreds of years, the people of the north have used resources wisely… Diavik will continue this fine tradition.”
Are Canadian diamonds ethical diamonds?
Canada has strict environmental and fair labor laws, especially for Aboriginal peoples, so Canadian diamonds are becoming increasingly popular among consumers seeking ethical diamonds. Ethical diamonds mean different things to different people, but everyone agrees that ethical diamonds are diamonds that have not fueled conflict or terrorism. Ethical diamonds are produced in an environmentally responsible manner, ensuring that all those who help mine and process them are treated fairly.
Diamonds have had a positive impact on local communities and the Canadian economy. In 2003, the Tilcho tribe (also known as the Dogrib) signed the Tilcho Agreement with the Canadian government, which guarantees the Tilcho a 2% royalty on the Diavik and Ekati mines, as well as the ability to receive royalties from any new mines in a designated area. The agreement includes $115 million (152 million Canadian dollars) in cash over 15 years and approximately $3.8 million (5 million Canadian dollars) in training funding. Tilcho-owned companies also have priority when contracts are awarded.
As of 2018, the Ekati mine employed approximately 1,625 people, of which 44% were residents of the Northwest Territories and 57% were Aboriginal people. As of the end of 2018, Diavik spent 30 billion Canadian dollars on Aboriginal operations in the north, and 27% of the mine’s workforce was Aboriginal. The mine needs to hire workers to transport materials by land or water, build roads, etc., so the operation of the mine will continue to create related employment opportunities in the Northwest Territories. A diamond cutting center has also been established in Yellowknife, the capital of the Northwest Territories.
Overall, Canadian diamonds are an important export item that promotes the Canadian economy. In 2018, Canada’s diamond value and production made it the third largest diamond producing country in the world. Canada’s annual diamond production is currently estimated at more than $2 billion.
How to be sure your diamond is Canadian?
Knowing a diamond’s 4Cs ( color , clarity , cut and carat weight ) is key to appreciating its quality and value. But knowing a diamond’s country of origin is just as important. A diamond’s country of origin helps us understand the impact our purchases have on the lives of the people who made them. Canadian diamonds are among the few diamonds sold by origin, and most can be traced from mine to market. Many are inscribed with a maple leaf, polar bear or other Canadian symbol or logo, along with a grading report number, making Canadian diamonds recognizable for generations to come.
Another surefire way to know if your diamond is from Canada is to get a GIA Diamond Origin Report for your diamond , which not only provides a comprehensive and neutral assessment of the 4Cs, but also clearly states the diamond’s country of origin. Country of Origin Reports are available for select Canadian diamonds and certain diamonds from Botswana, Lesotho, Namibia, Russia and South Africa.
