Thorunn Howatt
Northern News Services

Yellowknife (Oct 23/02) - A diamond bill keeping Ekati gems moving to market is making its way through Parliament this week.

"What is interesting us is our diamonds exported out of Canada," said BHP Billiton's Serge Pelletier.

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

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. But "clean" Canadian gems will be affected too.

All of BHP Billiton's Ekati stones make a trip to either England or Belgium before being cut and sold.

"The Kimberley Process covers the movement of the rough," said Pelletier.

If the Canadian government isn't on board with a United Nations-sanctioned certification process gems will be stopped at the destination nation's international border.

But the federal government is pushing a Kimberley Process-related bill through the House of Commons now. The bill received second reading on Monday.

"Ottawa is working super hard on it. I think everyone understands Canada's situation," said Pelletier.

The strategy behind the Kimberley Process is simple. Diamond exporting countries will seal and certify rough, unpolished stones and receiving countries can reject uncertified diamonds.

"Conflict diamonds are a humanitarian issue. Everybody wants to stop conflict diamonds from moving around the world," said BHP's Pelletier.

But there's also a commercial reason for wanting to certify gems. Diamonds could acquire a bad reputation If customers fear their baubles came from a "conflict" country they might boycott them altogether.

Bad press from organizations like Greenpeace destroyed the fur trade in the 1980s and diamond companies want to avoid a similar fate.

"By supporting the process to ensure the security and sustainable growth of this industry in developing countries in Africa, we will help ensure that Canada's industry continues to prosper," said federal Minister of Natural Resources, Herb Dhaliwhal.

Under the new certification scheme, exported diamonds will have to be shipped in tamper-resistant containers accompanied by a certificate and validated the diamonds are conflict-free by the government of the export country. Participating countries won't be able to import stones from countries not involved in the Kimberley Process.

If the bill becomes law, Natural Resources Canada will be the overseeing authority.

Ekati Mine produces nearly six per cent of the world's diamonds by value.

That number will increase after Diavik mine opens in only a few months.