As we enter the new millennium, the diamond world is changing where Canada's Northwest Territories (NWT) will be an important part of the new diamond world.

The government of Northwest Territories (GNWT) of Canada is committed to developing secondary diamond industries that provide additional benefits and opportunities for northerners. The GNWT is examining opportunities in the diamond cutting and polishing, for which the direct assured access to 10 per cent of value of BHP Diamonds's production is critical.

According to a note from the Canadian counsulate, once the various permits for diamond processing are in place, the NWT will then be producing approximately 12 per cent of the world's diamonds in value terms.This development has been rapid. The Ekati diamond mine, owned by BHP Diamonds and Dia Met (Kelowna, Canada) opened in Octoberlast, and is producing at a rate of over three million carats a year of high quality diamonds (approx US$500 million per year).

The Daivik Diamond Mine proposal is in the final stages of review and permission by the Canadian government. Rio Tinto (RTZ) of London (also owners of the Argyle Diamond Mines) and Aber Resources of Vancouver, Canada, own the Diavik project.

Further, Sirius Diamond is currently cutting diamonds in the NWT with two more manufacturers to follow later this year. The GNWT is working with RTZ (Rio Tinto of London, owners of Argyle Diamonds) and Aber Resources to ensure that the Diavik project also provides rough diamonds to northern manufacturers.

Several other projects are in advanced development including a De Beers joint venture with Mountain Province (Vancouver, Canada) at Kennedy Lake, and Winspear Resources (Vancouver, Canada) Snap Lake project. The NWT will be a significant diamond producer for many years to come as it has long been known as a place rich in resources.Initially fur was the resource that attracted settlers to the North Canada. During the 20th century, gold, silver and oil resources in the NWT roughly the size of India were developed. Exploration for diamonds was sporadic and limited. Then in 1991, came the announcement of diamonds in the North.

One of the exciting features of these new diamond developments is that the production will be sold to the market in a variety of ways for, Canada has a stable investment climate that can support a variety of marketing strategies.BHP Diamonds have contracted to sell 35 per cent of their production to the Central Selling Organization of the De Beers. Of the remaining production 10 per cent by value will be sold to diamond cutting and polishing companies in the NWT at world price, while the rest is sold in Antwerp on the open market.The GNWT is also examining opportunities in jewellery manufacturing, using gold and diamonds from the NWT. Opportunities exist for joint ventures between established jewellerymanufacturers and distributors and northern companies and artisans. There is also considerable interest in developing tourism opportunities around the mining, cutting and selling of diamonds.

Further information on this subject could be available from: Amitabh Arora, advisor (Trade) Consulate of Canada E-mail: amitabh.arora@ micro.x400.gc.ca.