SOMBA K'E/YELLOWKNIFE
After some rough years, Yellowknife's diamond manufacturing industry is experiencing renewed optimism.
From right, Artur Margaryan, Hrant Babasyan and Nver Ghutyan work at their cutting and polishing posts at Arslanian Cutting Works. The company hit financial problems in 2009 and went into receivership in 2010. - NNSL file photo
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The GNWT announced Monday that Deepak International Ltd., a diamond distribution company which started in Rae-Edzo, was granted Approved NWT Diamond Manufacturer (ANDM) status. The company has also signed agreements allowing it to exclusively use the Polar Bear Diamond trademark.
"It's a significant announcement," said David Ramsay, Minister of Industry, Tourism and Investment. "We are going to see the rebirth of the secondary industry here in Yellowknife and in the NWT and its a big announcement."
The decision to grant the approval was based on an application submitted by Deepak International Ltd. last year and it means the company can now purchase a portion of the 10 per cent of NWT rough diamond production offered by the territory's diamond producers to NWT cutting and polishing operations.
According to Deepak Kumar, president and chief executive officer of the company, the diamond market is craving what Yellowknife has to offer, namely diamonds with a guaranteed chain of custody that are both environmentally and socially responsible.
"It's always been my opinion that diamonds are an expression of love and now they are expressions of both love and trust," said Kumar. "People are curious of how the diamonds were mined, cut, polished, certified. The chain of custody is very important. People like to know there is one body looking over the whole process, the government of the Northwest Territories."
Deepak International is also in the process of purchasing the two diamond manufacturing factories located on Archibald Street at the Yellowknife Airport, known as "Diamond Row".
Kumar said he expects them to be up and running this spring.
The factories had been previously owned by Arslanian Cutting Works, which went into receivership in 2010. The company was also the last entity to use the Polar Bear Diamond trademark.
Since then, only Crossworks manufacturing, the NWT subsidiary of the HRA Group of Companies, has worked as an authorized diamond manufacturer in the NWT, but does not use the Polar Bear Diamond trademark.
Kumar said the two buildings will essentially be gutted and refurbished into a "state of the art" diamond manufacturing facility.
"Essentially, only the shell will remain the same," he said, adding the staff will be hired locally as much as possible.
"In order to ensure the long-term stability of the industry, we need to have a sustainable work force and that is only possible by staffing locally," said Kumar.
Some potential workers with training already live in Yellowknife, but many will be hired on the job. Kumar said the company plans to focus on generating the interest among Yellowknife youth in pursuing careers in diamond manufacturing. Deepak International Ltd. already plans to offer 15 scholarships at $500 each this fall for students who want to pursue work in the industry.
