TORONTO (miningweekly.com) – Ontario's first diamond cutting and polishing facility, which will process rough stones produced at De Beers Canada's Victor mine, in the James Bay lowlands, will be built in Greater Sudbury, the province announced this week.

Crossworks Manufacturing, which is owned by HRA-SunDiamond, has qualified for a supply contract with De Beers' Diamond Trading Company, after the diamond miner agreed to make 10% of the rough diamonds produced at Victor available for cutting and polishing in the province.

The company has also agreed to similar agreements for its Snap Lake mine and Gahcho Kue project in Canada's Northwest Territories.

About $25-million worth of rough stones a year will be cut and polished at the Crossworks facility, according to Ontario's Ministry of Northern Development and Mines.

Some 50 people will be employed at the new facility, which is expected to be completed later this year.

“The Ontario government is following through on its commitment to create opportunity for value- added activities that will promote a vibrant diamond industry that could include trading, jewellery manufacturing, marketing, tourism and other activities,” said Northern Development and Mines Minister Michael Gravelle.

Victor is the first diamond mine to begin operations in Ontario, and is expected to produce an average of 600 000 ct/y for 12 years.

The $1,02-billion Victor mine started up in January 2008 and reached full production in July.

De Beers Canada bumped heads with the Ontario government in 2007, when the province suddenly announced a new diamond royalty, just as the Victor mine was starting up.

The royalty, which would have amounted to as much as 13% of profit, was subsequently adjusted downwards, and now also gives companies the option of earning deductions through a variety of corporate social investment payments.

Last year, De Beers Canada CEO Jim Gowans said that, although the measure still singles out diamond miners, it is a lot more reasonable in its current form.

Canada ranks in the top three diamond producers in the world in terms of value.

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