‘Diamonds are forever,’ but not necessarily so for northern mining industry

DeBeers, a prominent mining company, recently shifted its focus back to natural diamonds after dabbling in lab-grown ones. However, industry experts believe that this move may not be sufficient to revive diamond mining in northern Ontario.

The mining giant highlighted a significant drop in prices for lab-grown diamonds in a recent press release. This shift in the market reaffirmed DeBeers’ commitment to rare, high-value natural diamond jewelry. The company had ventured into lab-grown diamonds around the same time it closed its sole diamond project in Ontario – the Victor Mine near Attawapiskat First Nation in the province’s remote north.

The Victor Mine was a lucrative venture for DeBeers, yielding 8.3 million carats of diamonds between 2006 and 2019. However, the overall decrease in diamond prices, driven by changing consumer preferences and the proliferation of lab-grown diamonds, posed challenges for the industry.

Gerry Aubin, a jeweler from Sudbury, noted a significant shift in consumer behavior, with a majority opting for lab-grown diamonds due to their more affordable pricing and indistinguishable quality from natural diamonds. Justin Daley, CEO of VR Resources, echoed similar sentiments, emphasizing the declining interest in traditional diamonds among younger consumers.

Despite these challenges, VR Resources stumbled upon a promising diamond discovery in the James Bay region in 2023. While the deposit shows potential, Daley expressed skepticism about the project’s commercial viability given the lack of interest and profitability in existing diamond mines.

DeBeers’ strategy to reignite interest in natural diamonds through marketing campaigns was met with mixed reactions. While some, like Mike McTavish of Forage Fusion Drilling, remain optimistic about the enduring appeal of natural diamonds, others, like Daley, question the effectiveness of traditional marketing tactics in a rapidly evolving market.

The sentiment among industry professionals is divided, with nostalgia for the days of prospectors and exploration drilling contrasting with the realities of a shifting market landscape. While the allure of natural diamonds persists, the industry must adapt to changing consumer preferences and economic realities to ensure its sustainability in the long term.