Canada’s Northern Diamond Rush: A Modern Boom Rooted in History


Canada’s Northern Diamond Rush: A Modern Boom Rooted in History

The last great northern gold rush occurred in the late 1800s, when thousands of prospectors flocked to Dawson City in the Yukon, chasing dreams of fortune. Today, a new kind of rush is underway in Canada’s North—this time for diamonds. What began as exploration in the 1960s became a modern-day diamond boom in the 1990s, placing Canada among the top three diamond-producing nations globally, alongside Botswana and Russia.

A Growing Industry

The breakthrough came in 1991 with the discovery of diamond-bearing kimberlite near Point Lake, close to Lac de Gras in the Northwest Territories. This find led to the development of several major mines:

  • Ekati Mine: Canada’s first diamond mine, Ekati is 300 km northeast of Yellowknife and began operations in 1998. Owned 80% by BHP Billiton and 20% by prospectors Charles Fipke and Stewart Blusson, it contributes nearly 4% of the world’s diamond output by weight, and 6% by value. The mine is projected to operate for 20 years.

  • Diavik Mine: Located 100 km southeast of Ekati, Diavik began production in 2003. It’s owned by Rio Tinto PLC (60%) and Toronto-based Aber Diamond Corp (40%), producing 8 million carats annually—around 5% of global production. It employs approximately 700 workers and has a 20-year operational lifespan.

  • Jericho Mine: Opened in 2005 near Contwoyto Lake in Nunavut, this mine is operated by Tahera Diamond Corporation. It’s Nunavut’s first diamond mine and is expected to run for 8 years, employing around 125–175 people.

  • Snap Lake Mine: Set to start production in 2007, Snap Lake is Canada’s first fully underground diamond mine. Owned by De Beers, it's located under a lake in the Northwest Territories and is designed for a 20-year lifespan.

De Beers also owns the Victor Mine in Northern Ontario’s James Bay Lowlands, 90 km west of Attawapiskat, operating as an open-pit mine.

Between 1998 and 2002, Canada mined 13.8 million carats of diamonds, worth roughly $2.8 billion. Today, the country produces about 15% of the world’s diamonds, equivalent to a daily output of 1.5 kilograms worth $1.5 million.

Ethics, Economy, and Employment

Canada’s diamond industry is praised for its ethical standards. Unlike conflict diamonds from regions like Sierra Leone or Angola, Canadian diamonds are certified, traceable, and engraved with unique serial numbers and logos (like a maple leaf or polar bear). This ensures transparency and avoids funding conflict.

The industry has also had a transformative effect on the Northern economy:

  • Jobs: Around 40% of diamond mining jobs are held by Indigenous workers. Specialized roles like diamond cutting are often filled by skilled professionals from countries like Israel, Armenia, China, and Vietnam—some earning over $100,000 annually.

  • Infrastructure & Services: Mining has spurred investment in road-building, surveying, and construction, contributing to a broader Arctic and sub-Arctic economic boost.

  • Boomtowns: Towns like Yellowknife have benefited greatly. Rents have soared—basement apartments can cost $1,500 a month—due to demand from high-income mine workers (average salary: $63,000). Yellowknife’s mayor in 1998, Dave Lowell, credited diamond mining with saving the city from recession.

The Modern-Day Rush

The excitement shows no signs of slowing. In 2004 alone, companies laid claim to over 70 million acres in the Northwest Territories and Nunavut—up from just 190 prospecting permits in 2003 to 1,518 a year later. Filing a claim costs between $0.10 and $2 per acre, potentially generating up to $140 million in government revenue. Prospectors have even resorted to dropping stakes from helicopters to secure remote claims.

Diamonds: Beauty, History, and Symbolism

The name “diamond” comes from the Greek word adamas, meaning “unconquerable.” Formed 3.4 billion years ago and brought to the Earth’s surface by volcanic eruptions, diamonds are made of carbon—the same element found in graphite—yet are the hardest known natural substance.

Historically reserved for royalty in 13th-century France, diamonds became popular in jewelry in Europe during the late Middle Ages. Their mystical appeal stretches back to Indian and Roman legends, with claims they could ward off evil or were tears of the gods.

Today, diamonds come in many colors—called "fancies"—though the classic white diamond remains the most prized. Only about 50% of mined diamonds are gem-quality, and fewer still are large enough to be cut into stones over 1 carat. To extract a single 1-carat polished diamond, 250 tons of ore must be mined.

Diamonds are graded by the “4 Cs”:

  • Carat (weight)
  • Color
  • Clarity
  • Cut

Certified diamonds are authenticated by independent labs, ensuring their quality and origin. Unlike gold, diamonds carry no hallmark, making certification essential for buyers.

Heart-Shaped Diamonds and Gift Ideas

With the holiday season approaching, heart-shaped diamond necklaces are a timeless, romantic gift. From classic to contemporary designs, they’re available in various metals—gold, silver, platinum, and even copper—and can be set with stones like diamonds, rubies, emeralds, or aquamarines.

Whether shopping in-store or online (via retailers, wholesalers, or auctions), it pays to compare options. Online shopping often yields better prices and more variety.

A Sparkling Alternative: Moissanite

Moissanite is a lab-created gem that rivals diamond in brilliance and hardness (9.25 on the Mohs scale, just under diamond’s 10). Originally discovered in meteorite fragments, today’s moissanite is produced by Charles & Colvard, the sole patent holder.

While moissanite can look nearly identical to a diamond—even fooling some jewelers—special tools like the "moissanite probe" are used to distinguish them. Moissanites are more heat-resistant than diamonds and display double refraction, a key identifier.

They’re also more affordable: a 1-carat moissanite costs about $525 versus $6,500 for a comparable diamond. A 4-carat moissanite tennis bracelet retails for around $1,800, compared to $2,500 for a diamond version.

Timeless and Treasured

Diamonds remain a symbol of love, wealth, and permanence. From ancient myths to modern engagement rings, their beauty and mystique endure. Whether mined from Canada’s Arctic or crafted in a lab, these dazzling stones continue to captivate and connect generations.


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