[Lead-in] 1. Many people assume that most of the world's diamonds come from Africa. But did you know Russia and Canada are now among the world's leading diamond producers? Did you know that? No, I didn't actually...not till now. Ant they're also finding gems in the far reaches of the frozen North. Julian Rush reports on why it's worth traveling so far for Arctic Ice.
[Report] 2. Two-thousand tons of rock is blasted from this huge hole everyday. Jericho is Canada's latest diamond mine. In the last decade there has been an explosion in prospecting in Canada's Arctic provinces. Ice roads like this are built each winter to bring supplies in for the whole year. But climate change means the winters are getting shorter. Last year that caused a financial crisis for Jericho's owners.
[Harold Gates / Operations Manager, Jericho Mine] "We're supplied primarily certainly for our bulk supplies like fuel and explosives via a winter road that's only really open for two months in the early part of the year. We have to get all the supplies we need for the entire year up that window...up that road during that window...that two-month window."
3. These are high-risk ventures indeed. Even so, in just 10 years Canadian diamond mining has boomed from nothing. Jericho, the third to open last year with the Ekati and Diavik mines, Canada now produces 12.5 million carats a year - some 15% of the world's supply, worth just under¡Ì1bn. And mining companies are spending as much again on developing more mines and on exploration.
4. There's 5 million dollars on this table. The largest diamond found so far in Jericho weighed 60 carats.
[Danny Keating / Mining Analyst] "They're exceptionally high quality and they need to be because of the extra cost that you have to bear in terms of construction and operating in those environments. So we've seen some of the better ones there's still a lot of potential. We've seen a platter of new companies that have sprung up to go and explore in the region. And it looks very prospective at the moment."
5. And Canada's diamonds have one great advantage when they reach the world's international diamond markets like London's Hatton Garden here. They can claim to be guaranteed free of the blood of Africa's diamonds, that they're conflict free.
6. No blood perhaps but there has been political conflict. Inuit say the mines obstruct caribou migrations, pollution in lakes and rivers kills fish. There has been consultation and agreements, but critics say too few of the financial benefits reach local people.
"Our commitment to, under our Impacts Benefit Agreement that I referred to before, is for 60% Inuit employment by the 5th year production on a best available basis. So we think that, you know, having been on operation barely over a year, to be a 30% is pretty encouraging."
7. In Nunavut province leaders insisted that some of the diamonds were polished locally to foster regional development. Instead, it's led to a boom in immigration.
"From China, from Filipino...This guy is from Singapore...from Russia..."
8. And the Russians are expanding their Arctic diamond mining too. With such riches at stake, no wonder the Arctic countries are facing off over territory. |
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