De Beers to offer 10 per cent of Ontario diamonds to sightholders

by eyetee | July 21, 2008 12:00 am

SB_Victor-Mine-3-2007-Oct-0 — An agreement in principle between De Beers Canada and the Ontario government will see 10 per cent of the Victor Mine’s production go toward expanding local cutting and polishing activities.

Ontario’s diamond industry is expected to get a huge shot in the arm following an agreement in principle between De Beers Canada and the province to expand local cutting and polishing activities.

De Beers, operator of Ontario’s first diamond mine, will offer 10 per cent of the Victor Mine’s production (by value) a year to a designated sightholder or sightholders to be chosen through an international competition. The successful candidate(s) will be expected to set up processing operations in Ontario.

“This agreement opens the door to a vibrant Ontario diamond cluster that could one day include diamond trading, jewellery manufacturing, marketing, tourism, and other activities,” said Northern Development and Mines Minister Michael Gravelle.

Jim Gowans, president and CEO of De Beers Canada, said the agreement—which works out to about $25 million worth of rough stones a year—is expected to fuel economic development in the area.

“De Beers Canada’s investment will create [an economic impact] of $6.7 billion in gross domestic product (GDP), contributing to sustainable growth in the First Nation communities of James Bay, northeastern Ontario, and Ontario,” he added.

Earlier this month, Gravelle travelled to London, England, to meet with potential sightholders.

The Victor Mine is located in the James Bay Lowlands of northern Ontario, approximately 90 km west of the First Nations community of Attawapiskat. The mine is expected to generate more than 400 full-time production jobs and about 6 million carats of diamonds during its 12-year lifespan.

The company has signed several impact benefit agreements (IBAs) with James Bay aboriginal communities that have led to the development of construction jobs, direct payments, training programs, infrastructure, and more than $175 million in joint ventures.

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[Image]: http://www.jewellerybusiness.com/wp-content/uploads/2011/04/SB_Victor-Mine-3-2007-Oct-0.jpg

Source URL: https://www.jewellerybusiness.com/news/de-beers-to-offer-10-per-cent-of-ontario-diamonds-to-sightholders/