Thorunn Howatt
Northern News Services

Yellowknife (Oct 02/02) - Ekati sparklers won't be leaving Canada's borders if federal diamond laws aren't in place soon.

"We are deadly nervous here," said BHP Billiton's Serge Pelletier.

Diamond exporters all over the world face an oncoming deadline. By Jan. 1, gems will have to be certified according to standards dubbed the Kimberley Process or they won't be allowed into other countries. Diamond nations want to guarantee gem origins.

But the feds haven't turned the Kimberley Process into Canadian law.

"Ottawa has been taken by surprise," said Pelletier.

So when the new year comes, if gems aren't certified, they could be stopped at nations' borders. That means Ekati diamonds could be barred from entering countries like the United States because they are not accompanied by a proper certificate.

The mine's sales could grind to a halt.

"After Jan. 1, if we don't have any revenue, what's going to happen?" asked Pelletier.

In the United States, the Clean Diamonds Trade Act passed through the House of Representatives. It still requires Senate approval to become law. The act bans imports of polished diamonds from countries that haven't signed up for the certification process.

The territorial government has been doing all it can to move the federal government toward legislation of the Kimberley certification.

"That's something we have been pushing. We think we are very well positioned to play a very big part in it," said RWED deputy minister Bob McLeod.

But he noted that it's the federal government that stands to lose if diamond exports are halted - it's the one that benefits from diamond royalties.

It could take months to turn the United Nations-backed Kimberley Process into federal law - And until then, certification might not get recognition from 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.

The World Diamond Council is leading the initiative. In the procedure, diamond exporting countries seal and certify gems while receiving countries can reject uncertified diamonds. The scheme involves more than 30 governments world-wide.

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.

There are still a few roadblocks to overcome before a certification plan is final. International trade law is one of them.

And it probably won't be long before somebody figures out how to counterfeit certification documents.