Putting A Value On Ontario's Diamonds
McGuinty Government Selects Aboriginal Firm To Assess Worth Of Mine Output
Ontario's first diamond mine - De Beers Canada Inc.'s Victor Mine near Attawapiskat - began processing rough diamonds early in 2008, and is gearing up for full production later this year.
Valuation of rough stones is required because each uncut diamond has an individual value that depends on its colour, clarity, and overall size. Diamond prices can vary widely, and methods used to determine the value of production of other mineral commodities are unsuited to them.
To accommodate its first diamond mine, Ontario has adopted an approach based on the process established in the Northwest Territories and Nunavut Mining Regulations (formerly the Canada Mining Regulations) for Canada's two other diamond-producing jurisdictions. It involves having a government diamond royalty valuer examine the stones produced in Ontario and establish a market value for them. The net value of output, on which the royalty is payable, is calculated using the market value established by the valuer.
Ontario's diamond royalty valuer will be Diamonds International Canada (DICAN) Limited, a Canadian company established in 1998. It is owned by the Aboriginal Diamond Group (ADG), based in Yellowknife, and WWW International Diamond Consultants Limited (WWW), based in London England. ADG holds 51 per cent of DICAN ownership while WWW holds 49 per cent.
ADG is one third owned by Nishi Khon Enterprises Inc., one third by Deton'Cho Corporation, and one third owned by Kitikmeot Corporation. These corporations represent the business interests of the Dogrib Nation, the Yellowknives Dene First Nation and Kitikmeot Inuit Association, respectively.
WWW is a privately-owned British corporation composed of an international team of rough diamond valuers and rough diamond industry consultants and specialists. It was founded in 1996 by Richard Wake-Walker and Charles Wyndham, and provides independent consultancy, advice and diamond valuations for governments and companies worldwide.
The principals of ADG handle the company's administration in Canada while WWW contributes its technical expertise and management experience. WWW will carry out all the technical diamond work for this contract.
DICAN also serves as government diamond valuer for diamond mines in the Northwest Territories and Nunavut.