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Clock ticking on gem bill

Timing tight to get federal law in place by January deadline

Thorunn Howatt
Northern News Services

Yellowknife (Oct 09/02) - Ekati diamond exports face a tough deadline and timing has to be perfect.

A diamond certification bill has a week to get Ottawa's attention or NWT gem sales could halt in the new year.

"Our hope is to have the legislation introduced into the House (of Commons) before Thanksgiving," said the Department of Northern and Indian Affairs' Doug Paget.

On Jan. 1, gems will have to be certified according to standards outlined in the Kimberley Process or they won't be allowed into other countries.

Next month there is a meeting in Switzerland for ratification of the process.

So far not every diamond country has signed the document.

BHP Billiton's Serge Pelletier said in last Wednesday's business section that the company is nervous about the situation.

Despite the crucial timeline, the issue wasn't confronted by the federal government.

If the tackle the diamond certification topic immediately, it will still be a tight squeeze to make it law by the January deadline.

"But it's considered to be a priority and they are going to push it as hard as they can," said Paget.

Right now all of Ekati mine's gems go to London or Antwerp for marketing.

Canada isn't the only nation hard-pressed to meet the deadline.

Some nations are lobbying for a three-month grace period.

"We are not counting on that but if we feel like we could not make it, we would be pushing for something like that," said Paget.

Stopping flow of 'blood diamonds'

Kimberley Process certification is a United Nations' endeavour meant to stop the flow of "conflict" diamonds to markets and protect the legitimate diamond industry.

Diamonds mined and sold by African warlords to support their armies are called "conflict" or "blood" diamonds.

The Kimberley certification guarantees diamonds' origins and lets consumers know if the gems are from a conflict country.

In the procedure, diamond-exporting countries seal and certify rough, unpolished gems while receiving countries can reject uncertified diamonds. It affects exploration samples not polished diamonds.

The process involves more than 30 governments worldwide.