Recent N.W.T. conference renews interest in diamonds and exploration for other critical minerals
The Northwest Territories recently hosted the 12th International Kimberlite Conference in Yellowknife, sparking a renewed discussion on the future of diamonds and other critical minerals in the territory.
The conference, which ran July 8 to 12, marks the second time the conference has been held in Canada — the first in 2003.
It brought together around 300 geoscientists from the academic and diamond industries around the world to share knowledge about the diamond industry
Karen Costello, the executive director of the N.W.T. and Nunavut Chamber of Mines, said Canada's diamond production is still "in our infancy."
The 186 carat “gem quality diamond” was found in Ekati’s Pigeon kimberlite in early June. (CBC North)
"The diamond industry has been active only since the 1990s. In Africa and South America, it has been around well for over 100 years ... so there are still discoveries to be made," Costello said.
According to Costello, there has been recent growth in the exploration of critical minerals as well. Companies that own mines are exploring within their current footprint and adjacent areas to uncover any potential minerals.
Though there has been a lot of volatility in diamond prices recently, that hasn't decreased diamond exploration, she said.
"Critical mineral exploration, while it is quite exciting ... it still is a long way from the level of investment that the diamond mines and what had previously been done for exploration overall," Costello said.
She also said exploration for a variety of commodities can be ongoing at the same time, if there is a welcoming investment environment and a clear regulatory framework to try finding the next generation of diamond mines.
Paul Zimnisky, a diamond industry analyst, said that diamond production overall has been on a multi-decade low for quite some time now.
Paul Zimnisky is a diamond industry analyst. (Submitted by Paul Zimnisky)
"It was 150 million carats in 2017, last year it dropped to approx 115 million carats according to my estimates ... and will remain between 110 to 120 million carats for sometime," Zimnisky said.
He said such events and conferences do help start a conversation within the industry, but it all comes down to economics.
"Going forward there is always a chance we see diamond prices rise high enough, you will see new mines come into production. But I know with diamonds, it will be particularly long to put a mine into production," he said.
Costello said that companies are looking for certainty.
"There have been some challenges in the N.W.T over the last few years ....and the lack of a north of 60 mineral exploration tax credit has reduced overall exploration over the last 15 years," Costello said.
