Yellowknife (June 16/03) - Diamond jewellery manufacturing in the NWT and Nunavut could have more potential than the cutting and polishing industry, says Laurelton Diamonds Michael Ballantyne.

Laurelton Diamonds will supply diamonds for jewellery manufacturing in the North, said vice-president Michael Ballantyne. - Norm Poole/NNSL photo

Laurelton is a subsidiary of New York-based Tiffany & Co.

The jewellery retail giant signed a memorandum of understanding with the Kitikmeot Inuit Corp. (KIC) and the Rae Development Corp. earlier this year to develop the industry.

That should see sample jewellery pieces produced and test marketed in Canada and the US within three months, said Ballantyne.

Tiffany recently commissioned a marketing study by a California firm, NVI Marketing, to determine the potential for the industry.

Aboriginal-motif jewellery designs test marketed in the US produced a "very favourable" response, said Ballantyne, a vice president with both Laurelton and Aber Diamonds.

NVI concluded that aboriginal-motif diamond jewellery priced under $500 would find a strong market in Canada and the US.

"With that we have decided to move forward to the next phase," Ballantyne said.

"That will be develop sample products with designs by aboriginal artists and test market them in Canada and the US.

"Everybody involved is very excited about this project."

George Mackenzie said the Rae Band Development Corporation (RBDC) sees the venture as a business opportunity with the potential to bring jobs to the community.

"We have 12 young people in the community now with jewellery and art training and we see this as potentially an opportunity for them.

"Not everybody can work at the mines and we are trying to create jobs for people in our community."

Tiffany's involvement was a big inducement, he said.

"They are the key. They have the experience and the expertise to make this work."

Ballantyne said he is "quite optimistic" about the future of diamond jewellery manufacturing in the North.

"I have no doubt that ultimately it has more potential than the cutting and polishing industry."

Jewellery designs and brand names would draw on Northern themes and aboriginal culture.

Although marketing plans haven't been finalized, the jewellery wouldn't be sold at Tiffany stores.

"They cater to a different market entirely," Ballantyne said.

Diamonds for the venture would come from the Laurelton cutting and polishing plant in Yellowknife.

Aber owns 40 per cent of the Diavik diamond mine and has an 10-year agreement with Tiffany's to supply Laurelton with $50 million worth of diamonds a year.

Tiffany/Laurelton has completed construction of a diamond cutting/polishing plant in the city but it has yet to open.

Ballantyne said finding experienced workers has been a problem but the plant should be open by September.

Experts attending a diamond jewellery workshop in Yellowknife four years ago agreed that the industry could be developed "given the right scale."

Large-scale intensive manufacturing probably wouldn't be viable given the territory's industrial capacity and the distance to markets, they concluded.

But small scale design studios and licensing arrangements for designs could be used to establish a unique product line, the experts agreed.