IDEAS home Printed from https://ideas.repec.org/p/sls/resrep/0409.html
   My bibliography  Save this paper

The Growth of Diamond Mining in Canada and Implications for Mining Productivity

Author

Listed:
  • Jeremy Smith

    ()

Abstract

Diamond 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.

Suggested Citation

  • Jeremy Smith, 2004. "The Growth of Diamond Mining in Canada and Implications for Mining Productivity," CSLS Research Reports 2004-09, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:0409
    as

    Download full text from publisher

    File URL: http://www.csls.ca/reports/csls2004-09.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Diamonds; Diamond Mining; Canadian Diamonds; Diamond Industry; Productivity; Mining Productivity; Mining Industry; Canada; Northwest Territories;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:resrep:0409. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS). General contact details of provider: http://edirc.repec.org/data/cslssca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.