--- canonical_url: "https://csls.ca/research/the-growth-of-diamond-mining-in-canada-and-implications-for-mining-productivity/" title: "The Growth of Diamond Mining in Canada and Implications for Mining Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:59:52+00:00" date_modified: "2026-07-02T13:59:52+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "diamond mining" - "mining sector" - "natural resources" - "Northwest Territories" - "productivity" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Sector/Industry Analysis" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Growth of Diamond Mining in Canada and Implications for Mining Productivity Canonical URL: https://csls.ca/research/the-growth-of-diamond-mining-in-canada-and-implications-for-mining-productivity/ # The Growth of Diamond Mining in Canada and Implications for Mining Productivity [Download full PDF report](https://csls.ca/pdf/csls2004-09-1.pdf) Cite this report × Cite this report as: Smith, Jeremy. 2004. “The Growth of Diamond Mining in Canada and Implications for Mining Productivity.” CSLS Research Report 2004-09. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-growth-of-diamond-mining-in-canada-and-implications-for-mining-productivity/ ## Author: - Jeremy Smith Centre for the Study of Living Standards (CSLS) ## Report 2004-09 October 2004 24 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? 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Since then the Diavik mine has begun production, and two other mines are slated to begin production within two years. Canada’s share of the world value of diamond production was 15 per cent in 2003, the third largest worldwide. These mines are all located in the northern regions of Canada, and hence contribute substantially to the growth of these regions. Diamond production accounted for 19.9 per cent of total real output in the Northwest Territories in 2002, representing a phenomenal impact, especially given that the industry did not exist five years before. Given the very high level of output per hour in the diamond mining industry – reflecting a high degree of economic rent – and the strong expected growth of the industry in the coming years, the labour productivity growth of the overall mining industry will be favourably affected. Based on a rough simulation of the growth of the Canadian diamond mining industry in the 2001-2006 period, average annual labour productivity growth in the overall mining industry will be between one and two percentage points higher than if the diamond mining industry did not exist. Although the mining of rough diamonds is lucrative in itself, there is also much value added in the manufacture and retailing of diamond jewelry. Investment by Canadian firms in each stage of the diamond pipeline could promise large returns due to the very high value added associated with the overall diamond industry. L’exploitation diamantifère au Canada a débuté en 1998, avec la première production de la mine Ekati dans les Territoires du Nord-Ouest. Depuis, la mine Diavik a commencé sa production, et deux autres mines devraient entrer en production d’ici deux ans. La part du Canada dans la valeur mondiale de la production de diamants s’élevait à 15 % en 2003, soit la troisième en importance au monde. Ces mines sont toutes situées dans les régions nordiques du Canada et contribuent donc considérablement à la croissance de ces régions. La production de diamants représentait 19,9 % de la production réelle totale des Territoires du Nord-Ouest en 2002, une incidence phénoménale, d’autant plus que cette industrie n’existait pas cinq ans plus tôt. Étant donné le niveau très élevé de production par heure dans l’industrie de l’exploitation diamantifère — qui reflète un degré élevé de rente économique — et la forte croissance attendue de l’industrie au cours des prochaines années, la croissance de la productivité du travail de l’ensemble de l’industrie minière en sera favorablement touchée. D’après une simulation approximative de la croissance de l’industrie canadienne de l’exploitation diamantifère pour la période 2001-2006, la croissance annuelle moyenne de la productivité du travail de l’ensemble de l’industrie minière sera supérieure d’un à deux points de pourcentage à ce qu’elle serait en l’absence de l’industrie diamantifère. Bien que l’extraction de diamants bruts soit lucrative en soi, la fabrication et la vente au détail de bijoux en diamants génèrent également une valeur ajoutée importante. [Download full PDF report](https://csls.ca/pdf/csls2004-09-1.pdf)