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Diamonds – Mining, Lab-Grown and Conflict/Blood

With millions pouring into Attawapiskat, colonial blame only goes so far – by John Ivison (National Post – December 7, 2011)

The National Post is Canada’s second largest national paper.

Failed colonial policies are the biggest obstacles to First Nation progress, Shawn Atleo told a gathering of native chiefs in Ottawa Tuesday. The Assembly of First Nations chief was referring to moves such as Ottawa’s decision to put the troubled Attawapiskat reserve in northern Ontario under third party management. “We simply can’t lurch from crisis to crisis and we can’t accept externally imposed solutions,” he said, before lauding the chief of Attawapiskat for demonstrating transparency and accountability.

Yet the decision to intervene was simply the government exercising its fiduciary duty. The apparent mismanagement of this band by its chief, council and the co-manager, who is meant to be advising the chief but turns out to be her “life partner,” made the worst of an already bad situation. Chief Theresa Spence spoke to the chiefs in Ottawa Tuesday and urged them to take an aggressive stand with the government. “We’re not going to take it anymore,” she said.

The simple fact is, she has been stripped of authority because money has been pouring into the reserve and yet conditions have deteriorated beyond any acceptable level.

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CBC Radio Thunder Bay interview with Ben Bradshaw about Aboriginal/Mining Company IBAs (November 14, 2011)

Ben Bradshaw is a researcher in the Department of Geography at the University of Guelph, and the founder of the Impact and Benefit Agreement Research Network.

In a November 14, 2011 interview with Thunder Bay CBC Radio, Ben Bradshaw discusses various IBA Agreements between Aboriginal communities and mining companies across Canada including the current issues in Attawapiskat.

http://www.cbc.ca/superiormorning/episodes/2011/11/14/ben-bradshaw/

Impact and Benefit Agreement (IBA) Research Network

http://www.impactandbenefit.com/home/

Background

Notwithstanding an absence of legislation forcing their use, over the past two decades a number of Impact and Benefit Agreements (IBAs) have been established between mining firms and Aboriginal communities in support of some familiar projects across northern Canada. For example, IBAs were used to facilitate the development of the Northwest Territories’ three diamond mines (Ekati, Diavik and Snap Lake), as well as Inco’s Voisey’s Bay project in Labrador.

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NEWS RELEASE: Global Witness leaves Kimberley Process, calls for diamond trade to be held accountable

5th December 2011

http://www.globalwitness.org/

Global Witness today announced that it has left the Kimberley Process, the international certification scheme established to stop the trade in blood diamonds.

The Kimberley Process’s refusal to evolve and address the clear links between diamonds, violence and tyranny has rendered it increasingly outdated, said the group. Despite intensive efforts over many years by a coalition of NGOs, the scheme’s main flaws and loopholes have   not been fixed and most of the governments that run the scheme continue to show no interest in reform.

“Nearly nine years after the Kimberley Process was launched, the sad truth is that most consumers still cannot be sure where their diamonds come from, nor whether they are financing armed violence or abusive regimes” said Charmian Gooch, a Founding Director of Global Witness.

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Attawapiskat: await the audit – Thunder Bay Chronicle-Journal Editorial (Thunder Bay Chronicle-Journal – December 2, 2011)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

HOW does a remote native community of 2,000 people that receives $18 million a year in federal funds alone — $90 million in total since 2006 — wind up in such a wretched state? Attawapiskat on the James Bay coast is not alone among reserves in poverty, but it’s housing conditions are top of mind across Canada as winter sets in. Large families living in shacks and tents is a national disgrace.

Uninformed critics blame the band council without knowing the details. Those details will shed light where it belongs, but everyone must wait for that information before coming to conclusions.

Others say the Harper government is blaming the victim, so to speak, for taking control of local spending out of the band’s hands and ordering an audit. This examination of spending will look at where it comes from as well as where it goes. The Aboriginal Affairs and Northern Development department will thus be under as much scrutiny as the band itself. This alone may prove to be the most illuminating aspect of the audit, for it could shed light on a system of bureaucracy that First Nations have long complained is too complicated and restrictive.

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Debeers Representative Tom Ormsby Speaks to CBC Radio/TV About Attawapiskat Crisis

The housing crisis in Attawapiskat has some wondering why the community isn’t benefitting more from the nearby diamond mine. DeBeers Canada Director of External and Corporate Affairs Tom Ormsby spoke with various CBC Radio and TV interviewers: CBC Televion Interview between Tom Ormsby and Suhana Meharchand – November 30, 2011 http://ca.news.yahoo.com/video/canews-22424922/diamonds-at-attawapiskat-27436870.html CBC Radio Ottawa – November …

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Resource agreements balance [Aboriginal] heritage with economic development – by Ryan Lux (Timmins Daily Press – October 27, 2011)

The Daily Press is the city of Timmins broadsheet newspaper.

Mining activity is providing a ray of sunshine in a region where little economic activity has occurred in the past 30 years, said a manager with De Beers Canada.

Shannin Metatwabin was one of the speakers at this week’s Mining Ready Summit in Timmins which brought First Nations together with representatives from Ontario’s mining sector. Metatwabin manages Aboriginal affairs and sustainability for De Beers’ Victor Lake Mine, 90 kilometres west of Attawapiskat.

Originally from Fort Albany, Metatwabin said he feels as though he has a stake in the development and wants the region’s people to see benefits.

Explorations near Attawapiskat began in 1985 and the Victor Lake Mine didn’t go into production until 2008. Metatwabin said during the intervening years De Beers worked hard at educating communities on mining and developing residents’ employment capacity.

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Symbol of Ontario legislative authority goes on a summer vacation to the James Bay coast

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

The ceremonial Mace from the Ontario Legislature, which is adorned with two diamonds from De Beers Canada’s Victor Mine near Attawapiskat, went on a summer vacation earlier this month.  This symbol of authority at Queen’s Park made its first trip outside the Legislature since 1867 and toured the Victor Mine and communities on the James Bay coast. 

The first and second diamonds mined, cut and polished in Ontario, which were donated by De Beers Canada, were encrusted in the Mace when it was refurbished in 2009.  Accompanying the Mace on its rare summer vacation were Speaker of the Ontario Legislature Steve Peters, his Sergeant-at-Arms, Queen’s Park officials and the local MPP for Timmins-James Bay Gilles Bisson.

“Visiting the Victor Mine was an excellent opportunity to bring the diamonds, which grace the Ontario Legislature’s Mace, back to the people who mined them and the First Nations whose lands the diamonds came from,” said Mr. Peters, who also served as Ontario’s Minister of Labour from 2005 to 2007.  “The health and safety practiced by De Beers is commendable and something every organization and company should aspire to attain.”  

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Ontario Shines as Canada’s Diamond Capital

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario is home to more diamond projects than any other jurisdiction in Canada.  While Ontario has one producing diamond operation, De Beers Canada’s Victor Mine near Attawapiskat, it is home to 131, or 24% of all diamond projects in the country.  There are more than 533 active diamond projects in Canada ranging from grassroots exploration to advanced development to producing mines.

Following Ontario, the Northwest Territories hosts 111 diamond projects, or 20% of the Canadian total, and Nunavut hosts 100 diamond projects, or 19% of the national total. Quebec is home to 84 diamond projects, or 16% of the total.  Following in order of diamond activity are Saskatchewan, Alberta, British Columbia and Yukon Territory.

The total number of companies exploring for diamonds in Canada is 252 and 180 of those companies are listed on stock exchanges.  There are four operating diamond mines in Canada – Diavik, Ekati and Snap Lake in the Northwest Territories and Victor in Ontario.

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Russian Hydrology Student Particpates in De Beers Peatlands Reseach at Northern Ontario Diamond Mine

Russian Hydrology Student Yulia Orlova at De Beers Canada's Victor Diamond Mine

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Russian graduate student Yulia Orlova hopes to take lessons she is learning about muskeg at De Beers Canada’s Victor Mine home to better understand the dynamics of  Siberian peatlands.  She came to Canada last year and started her Masters in Geography at the University of Toronto.  Ms. Orlova is researching the impact of mine dewatering and mercury in peatlands under the direction of U of T professor Brian Branfireun.  This is one of the major research projects De Beers Canada’s Victor Mine is helping to sponsor.   

The 26 year old native of St. Petersburg graduated from St. Petersburg State University with a degree in hydrology.  She worked for three years both for the Russian government and a non-governmental environmental agency before continuing her studies in Canada. 

“There is expertise in Canada on peatlands and funding support and there were more opportunities to do research in my area.” – Russian Hydrology Student Yulia Orlova

“I wanted to come to Canada to study here,” said Ms. Orlova.  “There is expertise in Canada on peatlands and funding support and there were more opportunities to do research in my area.”  To complete her thesis on the hydrology of the James Bay lowlands, she collects and tests water samples from streams around the mine site and carries out analysis of the results and examines water chemistry.

Along with the academic component of her studies, Ms. Orlova, like all students and professors on the Victor site, is regularly engaged in safety training and orientation sessions. 

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De Beers Canada Victor Diamond Mine Doubles as Environmental Research Station

A casual observer could be forgiven for confusion over whether De Beers Canada’s Victor operation is Ontario’s first diamond mine, or a high-tech, sub-Arctic scientific research centre.  The mine itself has 13 employees dedicated to environment related jobs and at any time there could be at least 15 researchers on site.  Much of this ground breaking scientific work is related to commitments made in impact-benefit agreements with local First Nations.

In collaboration with five Canadian universities and various components of government, the Victor mine, which is located 1,070 kilometres north of Toronto near Attawapiskat, supports a number of independent but inter-related scientific research projects.  The mine invests $3.1 million annually in rehabilitation and environmental monitoring studies. 

Laurentian University, Queen’s University, University of Western Ontario, University of Waterloo and University of Toronto are all involved in various components of these research projects.  Professors along with PhD and Masters candidates from various disciplines are contributing to the advancement of knowledge about the James Bay lowlands and its ecology – knowledge that is shared for future benefit.

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De Beers Canada Victor Mine Creates Enormous Opportunities for Northern Ontario First Nations

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

 Ontario Mining Association member De Beers Canada’s Victor diamond mine is a sparkling example of promoting Aboriginal employment.  The Victor diamond mine, which is located about 90 kilometres west of Attawapiskat in the James Bay lowlands, currently has 226 employees from First Nations, or 43% of its workforce.

More than 90 employees from this group are from Attawapiskat with large representation from Fort Albany, Moosonee and Moose Factory and Kashechewan and 40 are from First Nations outside the James Bay area.  In Canada, mining is the largest private sector employer of Aboriginals.  This group comprises 7.5% of the mining workforce, which is up from 3.6% of the country’s total mineral sector workforce in 2006.

The Victor Mine operates with three different impact-benefit agreements – one each with Attawapiskat, Fort Albany/Kashechewan and Moose Factory/Moosonee.  “Negotiating the impact-benefit agreement is the relatively easy bit, implementing it is the tough part and making sure everyone understands their role is more difficult,” said Jonathan Fowler, De Beers Canada Vice President Aboriginal Affairs and Sustainability. 

“One of our strengths is in striving to build a culture of diversity,” he added.  “We don’t believe in a having a specific percentage of First Nation employment.  We want to provide opportunities for people to grow and develop and the real target is to maximize First Nation employment.”

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Diamonds and Gold – A Common Past, Present and Future – by By Paul Stothart

Paul Stothart is vice-president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues. www.mining.ca

With due respect to cobalt and coal, it is fair to state that diamonds and gold are the world’s two most prestigious minerals.  They are the minerals that hold the deepest emotional meaning among consumers, with traditional and cultural ties to commitment, union, luck, love and marriage.  They are also the minerals that are most indicative of personal wealth, affluence, sophistication and social status.  These two minerals and the corresponding industries have long shared a number of similarities in terms of the surrounding market-drivers, price mark-ups and social pressures.     

For example, the fundamental driver of the global market in both gold and diamonds is jewelry.  According to the World Gold Council, fully 68% of the world’s demand for gold over the past five years was for use in jewelry.  While the delineation is less exact in diamonds, it is estimated that gem-quality diamonds used in jewelry account for over 80% of the value of the world diamond market. 

A second point, and the converse from the above, is to note that the industrial application market for diamonds and gold is relatively modest in size.  Only 14% of world gold demand stems from industrial uses (while the remaining 18% is for investment purposes).  While there are important industrial uses in dental, electronics, medical and environmental fields, and growing potential in nanotechnology, these industrial uses for gold face the challenge of being commercially feasible at raw material price points that are currently well north of $1000 per ounce. 

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De Beers Canada – Sustainable Mining Contributes to Northern Economies and Aboriginal Employment

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

De Beers Canada celebrated two official diamond mine openings back-to-back in July 2008 – the Victor Mine in Ontario and the Snap Lake Mine in the Northwest Territories. However, the path to those production start-ups took a circuitous and difficult journey of almost 50 years. It took vision, faith and dedication to complete the trek.

De Beers, which is acknowledged as the world’s leading diamond company, began in 1888 in South Africa. The company commenced its exploration activities in Canada in the early 1960s with a staff of four. The first geological field season for De Beers in Canada was 1961.

If you move forward almost half a century to 2009 and De Beers Canada’s first full year of production, you can look at the results. From an operational standpoint, Victor turned out 696,000 carats and Snap Lake produced 444,000 carats for a total diamond output of 1,140,000 carats. This led to a revenue of $316.4 million ($243.7 Victor and $72.7 Snap Lake).

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Diamond Industry Grinds to a Halt – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators. The global diamond industry is suffering the same economic downturn as the rest of the world. Consumers who may be out of work or watching their investments shrink are in no …

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Diamonds, Diamonds Everywhere – by Marilyn Scales

Marilyn Scales - Canadian Mining JournalMarilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Imagine finding an exceptional, gem-quality white diamond weighing 189.6 carats. ROCKWELL DIAMONDS of Vancouver has done exactly that at its Klipdam mine near Kimberley, South Africa. The company reports that the stone is “oval in shape, somewhat flattened and strongly resorbed, and shows features typical of top colour high-value Type-2 gemstones.”

That description is sure to get everyone’s attention. So will the pictures of diamonds as large as 212-ct in the Diamond Gallery at www.RockwellDiamonds.com.

No less worthy of attention are recent exploration efforts for Canadian diamonds. Teams are finding diamonds and kimberlites at an astonishing rate this summer. Here are a few of them.

Vancouver’s COMMITTEE BAY RESOURCES and INDICATOR MINERALS reported the discovery of kimberlite boulders at the Borden project in Nunavut. Indicator minerals were visually identified in the float, and samples of the boulders have been sent for analysis.

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