JV Q&A: Canada must improve permitting, infrastructure to revive diamond industry, SRK expert says

The future of Canada’s diamond sector might seem uncertain as mines wind down, but officials could boost opportunities for those willing to innovate and invest strategically, according to SRK Consulting. To explore these prospects, The Northern Miner’s western editor Henry Lazenby spoke with Casey Hetman, corporate consultant and diamond expert at SRK.   

Hetman has over 30 years of experience in exploration, evaluation and the development of diamond resources globally including in Canada, Angola and Botswana. He unpacks some of the sector’s challenges, global trends and untapped potential.  

Henry Lazenby: Canada’s diamond sector seems to be on a downward slope. Could you provide an update on the industry’s current state and the key factors behind this trend?  

Casey Hetman: Canada’s diamond industry has seen remarkable highs, but it’s true that the sector is currently in decline. During the boom years, we saw several world-class mines come online, particularly in the North, such as the Ekati and Diavik and Gahcho Kue mines in the Northwest Territories, Victor in Ontario and Renard in Quebec. These projects represented a golden era for diamond production in Canada. However, many of these mines have now depleted their reserves or are nearing the end of their productive lives.  

The decline isn’t due to a lack of geological potential. Canada has over 1,000 known kimberlites and the Superior Craton—one of the world’s largest Archaean cratons—remains underexplored. Geologically, the region offers enormous potential for new discoveries for not only diamonds but gold and base metals. The issue lies elsewhere: economics and permitting challenges are the primary barriers to sustaining the industry.  

Canada faces stiff global competition for exploration and development dollars. Regions like Angola and Botswana  provide significant advantages in terms of infrastructure, regulatory frameworks and lower costs, making them more attractive destinations for investment.  

In Canada, the lack of infrastructure in remote regions, such as the Northwest Territories, Nunavut and northern Ontario, Manitoba and Quebec, makes exploration and mine development significantly more expensive. The logistical challenges of accessing these regions, coupled with high operating costs, deter many companies.  

Another factor is the regulatory environment. While Canada prides itself on rigorous environmental and permitting standards, the process can be slow and expensive compared to other jurisdictions. This creates additional hurdles for companies looking to bring projects to production.  

That said, the potential for Canada’s diamond industry to recover is very real. The key lies in fostering a more competitive investment climate. Strategic investments in infrastructure, streamlining permitting processes and promoting innovation in exploration and processing technologies could help revitalize the sector. The geological foundation is there, but the industry needs the right economic and regulatory environment to thrive.  

HL: Does this mean the industry could see a resurgence someday?  

CH: Absolutely, the potential for a resurgence in Canada’s diamond industry is very real, but it depends on several factors aligning. Canada has a strong geological foundation for diamond mining, with vast regions of underexplored terrain and over 1,000 known kimberlites. The Superior Craton, in particular, is one of the largest and most promising geological formations globally for diamond discoveries. This indicates that there are still opportunities to develop new mines or revisit older deposits with fresh insights and technologies.  

However, for the industry to see a resurgence, several challenges need to be addressed. First, Canada must improve its competitiveness as a destination for exploration and investment. This means tackling the high costs associated with operating in remote regions, where lack of infrastructure—like roads and power—can make projects prohibitively expensive. Strategic investments in infrastructure could make exploration and development more viable.  

Second, regulatory processes need to be streamlined. While Canada’s strong environmental and permitting standards are crucial, a faster and more predictable system would encourage companies to invest in exploration and development here rather than in more accessible regions like Angola or Botswana.  

Finally, innovation will play a key role. Advancements in exploration techniques, bulk sampling processes and mining technology could reduce costs and improve the efficiency of discovering and developing economically viable deposits. These innovations could also open the door to reassessing already discovered kimberlites that were previously deemed uneconomic.  

Global market dynamics will also influence the industry’s trajectory. Rising diamond prices, increased demand for ethically sourced gems and greater consumer interest in sustainability could position Canada as a preferred source of high-quality natural diamonds. Canada’s reputation for responsible mining practices and strict adherence to the Kimberley Process further enhances its appeal in the global market.  

HL: Are synthetic diamonds a genuine threat to the natural diamond market, or could they coexist?  

CH: Synthetic diamonds, or lab-grown diamonds, are both a challenge and an opportunity for the natural diamond market. They have gained significant traction in recent years due to their affordability. Lab-grown diamonds are chemically and physically similarto natural diamonds, but they can be produced on demand and at a fraction of the cost, which disrupts certain segments of the market.  

However, natural diamonds have qualities that lab-grown stones cannot replicate. Natural diamonds are formed over hundreds of millions to billions of years through complex geological processes deep within the Earth’s mantle. This unique origin gives them a mystique and a connection to Earth’s history that lab-grown diamonds simply cannot match.   

Programs like the Kimberley Process ensure that natural diamonds are mined ethically and initiatives such as De Beers’ GemFair platform work to empower artisanal miners in developing countries. These efforts create a story of social and environmental impact that lab-grown diamonds cannot replicate.  

HL: Moving back to deposits, how has the quality of diamond discoveries evolved in recent years?  

CH: Globally, we have an abundance of diamond deposits—thousands of kimberlites have been discovered in countries such as Canada, Angola and Brazil. However, the challenge isn’t necessarily about finding new kimberlites but about understanding the economic potential of those that are already known. Determining a deposit’s value is far more complex for diamonds than for metals like gold. For gold, a simple assay can reveal grade and approximate value. With diamonds, however, the critical factor is the average dollar per carat, which can vary significantly depending on the size, quality and distribution of the diamonds within the deposit.  

This evaluation requires extensive bulk sampling to produce enough diamonds for a representative analysis and that process is expensive. For example, to truly understand a kimberlite’s economic viability, you may need thousands of carats on the table to calculate the value per carat accurately. This bulk sampling is often conducted through large-diameter drilling or open-pit excavation, both of which require substantial investment.  

Ultimately, we’re at a point where better science and technology, combined with a willingness to invest in proper evaluation, can unlock the potential of both new and existing deposits. But this process requires time, effort and capital.  

HL: What’s the biggest bottleneck in unlocking the economic potential of these deposits?  

CH: The primary bottleneck is the cost and complexity of bulk sampling. Evaluating a diamond deposit’s economic viability is far more intricate and resource-intensive than assessing deposits for metals like gold.  

 For diamonds, you need to process large amounts of material to generate enough carats to accurately estimate the average dollar value per carat. This is critical because the value of diamonds is influenced by factors like size, quality and grade distribution, which vary significantly even within the same deposit.  

 This bottleneck isn’t unique to Canada. In countries like Brazil, which has over 1,000 known kimberlite bodies, very few have undergone the necessary bulk sampling to determine their true potential. Similarly, Angola and Botswana have many known deposits, but their evaluation often stalls due to the same challenges.  

HL: Are technological advancements, such as AI or automation, making a difference?  

CH: It’s still early days for AI in diamond exploration, but advancements in kimberlite volcanology have significantly improved our understanding of kimberlite systems. Over the past decade, our knowledge of emplacement processes—how kimberlites form and erupt—has evolved exponentially. This helps us prioritize deposits with better economic potential.

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by SRK Consulting and produced in co-operation with The Northern Miner. Visit: www.srk.com for more information.