The Growth of Diamond Mining in Canada and Implications for Mining Productivity
AbstractDiamond mining in Canada began in 1998, with the first production from the Ekati mine in the Northwest Territories. 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2004-09.
Date of creation: Oct 2004
Date of revision:
Find related papers by JEL classification:
- L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul M. Romer, 1987. "Crazy Explanations for the Productivity Slowdown," NBER Chapters, in: NBER Macroeconomics Annual 1987, Volume 2, pages 163-210 National Bureau of Economic Research, Inc.
- Centre for the Study of Living Standards, 2003. "Productivity Trends in Natural Resources Industries in Canada," CSLS Research Reports 2003-01, Centre for the Study of Living Standards.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Whitney Hamilton) The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.