The Diamond Industry across Canada. Montréal Round Table 25 May 2005

Transcription

1 The Diamond Industry across Canada Montréal Round Table 25 May 2005

2 Introduction Many positive developments Third largest producer Some challenges Many opportunities

3 Outline of presentation Evolution of the industry Since May 2004 Review the pipeline Parallel segments Challenges Opportunities

4 Exploration Close to half of the world exploration Over 190 companies Over 100 projects Three territories and six provinces Over 100 million acres Over $169 million in 2004

5 Ellesmere Island ALASKA Whitehorse Coronation Gulf Melville Peninsula Yellowknife Rankin Inlet Vancouver Buffalo Hills Edmonton Fort a la Corne James bay Otish Mountains USA

6 Mines Ekati 5 million carats in 2004 Underground mining Koala underground feasibility study ISO Top 100 employers Ekati

7 Diavik 7.6 million carats A-418 dike approval Underground feasibility ISO (Environment) ISO 9001 (PSF) Gold level of PAR PDAC E3 National Award John T. Ryan Safety Trophy Mines (cont d) Diavik

8 Projects Jericho Snap Lake Victor Fort à la Corne Star Diamond Gahcho Kué

9 Jericho Tahera Diamond Corporation All approvals in place Construction 2005 Production early 2006 Tahera

10 Snap Lake De Beers Board of Directors approval Construction Production 2007 Full Production 2008 De Beers

11 Victor De Beers Comprehensive Study Report Construction Production 2008 De Beers

12 Fort à la Corne Advanced Exploration and Evaluation Plan $25 million Joint partners De Beers Kensington Resources Cameco Corporation UEM Inc De Beers

13 Shore Gold Fort à la Corne area 27,837 tonnes bulk sample Pre-feasibility study Star Diamond

14 Gahcho Kué Joint partners De Beers Mountain Province Diamonds Inc Camphor Ventures Technical study $25 million 2012 De Beers

15 Manufacturing Arslanian Cutting Works Canada Dene Diamonds Sirius Diamonds N.W.T. Laurelton Diamonds Inc. HRA Investments Les Diamants du St- Laurent Diarough Canada CDC

16 Jewellery Manufacturing Solid demand Manufacturers Libman Corona Birks HRA Investments

17 In Canada Solid demand Availability Abroad Attractiveness of Canadian diamonds Increasing demand Retail

18 Larger membership National signatories International signatories Endorsed by the Competition Bureau Endorsed by CIBJO Diamond authentication standard Code of Conduct

19 Security RCMP Diamond Protection Services Customs and Excise Branch RCMP Forensic laboratory Ontario Provincial Police CSIS Report No penetration Risk is present Canadian Diamond Security Group Risk analysis Exchange of best practices Security companies

20 Laboratories Exploration samples Saskatchewan Research Laboratory SGS Lakefield Research Certification International Gemological Institute European Gemmological Laboratory Gemscan International Inc Harold Weinstein Ltd EGL

21 Research Universities University of Alberta University of British Columbia Laboratories Saskatchewan Research Council EGL Diamond fingerprinting U of A

22 Publications Canadian Diamonds 5,000 Governments, Industry International United States Japan Belgium England South Africa Canadian Diamonds

23 Studies Indian and Northern Affairs Canada Knowledge Based Study of Canada s Diamond Industry Canadian Diamond Council Corporation Human Resources Industry wide Scoping and Scanning Study GNWT Diamond tourism

24 Trends Vertical integration Aber Diamond Corporation/Winston Tiffany/Tahera Tahera Diamond Corporation BHP Billiton CanadaMark Branding Polar bear Tundra Canadia Certification

25 Organizations Canadian Diamond Council Corporation Canadian Diamond Manufacturers Association Canadian Diamond Code Committee Centre canadien de valorization du diamant

26 Government initiatives Kimberley Process Action Plan Approval by Premiers July 2004 GNWT official-mark licensing guidelines promulgated Québec Strategy on diamonds Excise tax gradual elimination Private member bill

27 Human resources Employment Primary and secondary industries Training Primary and secondary industries Business opportunities Capital and operating

28 Challenges facing the industry Exploration Mining Manufacturing Jewellery manufacturing Retail Security

29 Exploration Limited northern geoscience Challenging regulatory environment Limited infrastructure Land access Tax environment Federal flow-through shares on permanent basis Fugro

30 Mines Regulatory environment Limited infrastructure Manpower Capacity Aboriginal participation objectives Taxation regime Canadian Exploration Expenses Performance requirements Marketing of rough Ekati

31 Diamond Manufacturing Human resources Immigration Training Retention Automation National Certification HRA Investments

32 Jewellery production Definition of a Canadian diamond The Canadian Diamond official-mark Certification of small diamonds mined in Canada

33 Retail Definition of a Canadian diamond Confusion Uncertainty The Canadian Diamond official-mark Certification of small diamonds mined in Canada Workable solution needed Consumer Confidence Man-made diamonds Treated diamonds Certification

34 Security Industry growing without increasing the resources of law enforcement agencies Industry has doubled Five mines by 2008 Visibility increases Vulnerability increases

35 Industry wide issues Definition of a Canadian diamond Clear consensus required Code of Conduct Mined in Canada Canadian Diamond official-mark Promulgated in 2004 Uncertainty and burden Guidelines March 2005

36 Federal government participation Limited participation Areas of responsibilities Maximize synergy

37 Opportunities Superb geology Characteristics of diamonds mined in Canada Exotic location Environmental record Socio-economic record Growing local and world diamond demand Supplier of Choice India and China World economy Potential Synergy Win-win win-win

38 Conclusion Much has progressed Challenges remain Great opportunities RTD