They say "a diamond is forever," and that is music to the ears of the Canadian diamond industry.

Diamonds are and continue to be a hot commodity on the global market. Global retail diamond sales are estimated at $75.5 billion.

In the past decade, the Canadian diamond industry has grown exponentially and is now the third largest producer of rough diamonds by value after Botswana and Russia.

"As we move toward the next couple of decades, Canada may soon challenge Russia to become the second largest producer of diamonds in terms of value," says Denis Lagacé of Natural Resources Canada's (NRCan) Minerals and Metals Sector.

Canada's diamond industry continues to boom and is now the third largest producer of rough diamonds by value.

Aboriginal communities shine

As the diamond industry booms in Canada, both the Canadian economy and our communities benefit. Specifically, the industry provides a source of stable, high-income jobs for northern, remote and Aboriginal communities.

NRCan is working to promote Aboriginal participation in minerals and metals activities that will ensure mutual benefits and encourage sustainable development.

The role that NRCan plays is important for Aboriginal people, as some 1,200 Aboriginal communities are located within 200 kilometres of 190 producing mines and 1,900 active mining exploration and deposit appraisal projects across the country. According to NRCan, Aboriginal people, by being included in the diamond industry, are benefiting from some of the most stable, lucrative and long-term employment opportunities in Canada's rural and remote regions.

BHP Billiton Ltd., which owns 80 percent of the Ekati mine, continues to meet its commitments to purchasing goods and services from northern companies and to hiring northern Aboriginal people and northerners on a priority basis. Eighty percent of the mine's staff are northerners, of which half are Aboriginal people.

Diavik is also meeting its commitments to northerners and Aboriginal people. In 2004, the Diavik mine employed an average of 259 Aboriginal northerners, or 36 percent of the average work force.

Ekati mine's Panda and Koala open pits.

The future looks bright

Canada's potential for leadership in the diamond industry continues to look bright as four diamond mines are scheduled to start production in the coming years. These and other advanced exploration projects ensure prosperous times ahead for the economy of many Canadian regions.

The next to come into production, the Jericho Project, will be Canada's first diamond mine outside of the Northwest Territories. Located in Nunavut, this mine is scheduled to begin commercial production in early 2006.

Future projects on the radar include the Snap Lake diamond deposit, located northeast of Yellowknife. Once the mine is constructed in late 2007, it will be the first diamond mine in Canada built entirely underground. The mine is expected to increase Canada's rough diamond production by about 12 percent, have a life of more than 20 years and create about 500 direct jobs.

Scheduled for development by the end of 2008 is the $800-million Victor diamond project, located near Attawapiskat in the James Bay region of northern Ontario. The value of the diamonds is predicted to be one of the highest in the world. It is estimated that up to 600 employees will participate in the construction of the mine and that it will employ 400 workers once on-line.

A fourth new mine is also in the works. The Gahcho Kué mine located 80 kilometres southeast of the Snap Lake project in the Northwest Territories could be in production by 2012. With a capital cost of about $825 million, the mine would provide another 400 jobs once in operation.

The addition of these four mines could bring Canadian production to about 18 million carats with a value of $3 billion, an increase of 44 percent compared to current production levels. This compares to current world production of about 162 million carats with a value of $12.1 billion.

Across Canada, diamond exploration involving 129 companies is also under way in the Northwest Territories, Nunavut, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Newfoundland and Labrador, with expenditures reaching $260 million in 2004. Projects at an advanced stage of exploration are located in the Northwest Territories, Saskatchewan and Quebec.