PDAC applauds diamond strategy

The National Diamond Strategy, recently released by Canada’s premiers, should give a boost to Canada’s diamond exploration sector.

Among the policies recommended are modifications to the Investment Tax Credit for Exploration, amendments to the Canadian Exploration Expense tax credit, and additional funding for geoscience.

In July 2003, provincial and territorial premiers directed their mines ministers to develop an action plan for a “national diamond strategy.”

“It’s a good idea to have a strategy,” says Tony Andrews, executive director of the Prospectors & Developers Association of Canada. “If implemented creatively, it will provide Canada with an international competitive edge.”

The initiative to develop the strategy was led by the governments of Quebec and the Northwest Territories. Robert Boyd, president and CEO of Ashton Mining, led the PDAC’s efforts to involve the provinces and territories in developing a joint strategy.

“Boyd’s participation on behalf of the PDAC and the diamond exploration sector contributed significantly to the positive outcome,” says Andrews.

An early version of the strategy raised concerns about the development of a cutting and polishing industry without federal participation. The PDAC has since written to the provinces urging them to seek federal involvement.

There are still concerns about how Canadian diamonds should be officially defined, from the standpoint of security and marketing.

Next, the PDAC will participate in a national diamond strategy advisory committee and a multi-stakeholder co-ordinating group, which will implement the plan.

— The preceding is from In Brief, a quarterly publication of the Prospectors & Developers Association of Canada