Canada's diamond industry has grown at a meteoric rate. Canada only began producing diamonds in 1998, and now it is one of the top diamond producers in the world.
The Canadian diamond industry has
attracted some extremely big names in the resource sector. For example,
the first Canadian diamond mine, the Ekati project, is located 300 km
northeast of Yellowknife and is owned by BHP Billiton (BHP) one of the largest resource companies in the world. Rio Tinto (RIO)
has also entered the industry through its wholly owned subsidiary
Diavik Diamond Mines Inc, which operates the joint venture Diavik
Diamond Mine with Harry Winston Diamond Corporation (HWD). In addition, both the Snap Lake and Victor diamond mines are owned by De Beers Canada.
is certainly still opportunity in the space, and the following are some
interesting junior and mid-size exploration companies where we
recommend starting your research.
Stornoway Diamond Corporation (SWY)
is advancing the Renard Project in Quebec, which is on pace to be the
first diamond mine in the province. The company has completed a
feasibility study, the highlights of which include Probable Mineral
Reserves of 18.0 million carats and an after tax NPV of C$376 million.
Mountain Province Diamonds (MPV)
in partnership with De Beers Canada, is exploring the Kennady Lake
Project, which has 49 million carats in diamond reserves and could
potentially start producing in as little as two years.