DIAMOND DEAL: Ontario cuts deal on eve of Victor opening

ONTARIO The McGUINTY GOVERNMENT and DE BEERS CANADA have signed an agreement in principle to expand diamond cutting and polishing in the province. They have agreed that 10% of the output (by value) from the Victor diamond mine near Attawapiskat will be cut and polished in Ontario.

DE BEERS' DIAMOND TRADING COMPANY will be offering an estimated $25-million worth of rough stones a year to a designated buyer or buyers, known as "sightholders." The sightholder(s) will be chosen through an international competition, and will be expected to set up processing operations in Ontario.

Learn about the Diamond Sector Unit (http://www.mndm.gov.on.ca/mndm/mines/dg/default_e.asp) of Ontario's Ministry of Northern Development and Mines. The website also has a link to the provincial diamond royalty regulations.