We’ve come a long way, baby

by eyetee | March 16, 2009 12:00 am

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After two years of discussions, a feasibility study, and several town hall meetings across the country, the Diamond Bourse of Canada (DBC) is now a reality.

Launched at the Prospectors and Developers Association of Canada (PDAC) mining conference earlier this month, the DBC becomes the 29th bourse in the world and establishes a Canadian ‘cradle to finger’ diamond pipeline.

“This is a stepping stone for all Canadians and people around the world,” DBC president Bhushan Vora told Jewellery Business. “[The diamond bourse] will make Canada a major player in this market.”

Since the first discoveries of diamonds in the Northwest Territories in 1991, Canada has grown to be the third-largest producer of gem-quality stones, with a total value of $2.4 billion last year. Botswana and Russia are number one and two.

Northern Development and Mines Minister Michael Gravelle was on hand for the launch, announcing a $170,000 contribution by the Ontario government to the “Made in Canada” diamond exchange.

“The establishment of Canada’s first diamond bourse represents a very significant step in value-added activities across our province and throughout Canada,” Gravelle told a gathering of about 100 people.

“It will clearly benefit North American retailers, wholesalers, and buyers who will be able to purchase and sell diamonds here, rather than overseas. It will put Canadian diamonds in the hands of Canadian manufacturers and ultimately, Canadian consumers. Without question, it adds to our nation’s reputation for the ethical production of some of the finest diamonds in the world.”

Vora acknowledged that while the timing of the DBC’s launch may be off in light of the current economic conditions, launching it now will lay the groundwork for Canada’s future in the trading of diamonds.

“We’ve been a player for 10 years and haven’t been able to build anything,” he explained. “This was an important element that was missing in our industry.”

Robert Merwin, executive director of the ministry’s diamond sector unit, said not only will the bourse allow for the trading of Canadian diamonds, but it will also generate value-added and investment opportunities throughout the pipeline, as well as create jobs.

For Minesh Shah of Toronto-based Diaco Inc., being a founding member of the DBC was a once-in-a-lifetime opportunity.

“Even though the economic times may not be the best, you have only one chance to become a founding member,” Shah explained. “We are building something for the long run.”

De Beers Canada president and chief executive officer Jim Gowans welcomed the formation of the DBC, saying it will help promote homegrown stones here and abroad.

“What we need to do now is figure out how to create a Canadian brand, something that is uniquely Canadian,” Gowans said, pointing to Italian designers’ success with the ‘Made in Italy’ brand. “There’s no reason why we couldn’t establish a niche market for diamond jewellery that comes out of Canada.”

Canadian jewellery designer Reena Ahluwalia said establishing a Canadian bourse was inevitable and “sends out a positive message to the global diamond industry at large of an organized Canadian diamond industry and trading system, especially in the wake of the current shift into harder economic times.”

The 14 founding members—who each contributed $10,000—include Northam Diamonds, Gem Star, Libman & Company, Corona Jewellery, and Vandan Associates. Vora said he hopes trading will begin by the end of the year. The bourse will be headquartered in Toronto.

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