Diamond cluster, a reality in the north: Greater Sudbury expands its mining excellence.

The development of Ontario's first diamond cutting and polishing facility in the heart of Greater Sudbury brings with it new luster and shining possibilities for the community.

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"Just like what we've seen develop around Vale Inco and Xstrata Nickel, formerly Falconbridge 400 local companies employing 12,000 people," said Mayor John Rodriguez, "the diamond cutting and polishing facility is one example of the potential for a cluster business around the diamond industry in Sudbury."

He believes there is also great potential to develop gem setting and other jewelry trade businesses.

On April 6, Crossworks Manufacturing, a member of the HRA-SunDiamond Group, announced they won a De Beers Canada contract to cut and polish 10 per cent or $25-million worth of diamonds per year from the Victor Mine (located in the James Bay Lowlands, 90 kilometres west of Attawapiskat First Nation).

The facility is not just creating 50 jobs, said Dylan Dix, worldwide marketing director for Crossworks Manufacturing, part of HRA-SunDiamond Group.

"It's what we can develop in terms of a diamond pipeline in Ontario," he said explaining the Sudbury facility is being touted as a major link in a diamond pipeline.

"Now we have a real dynamic force: Hopefully something that can inspire more value-added business development."

Along with the creation of a diamond bourse, which is a trading centre for diamonds in Toronto, Michael Gravelle, Minister of Northern Development and Mines said, "you're getting an industry that is growing.

"It's all part of developing a diamond industry in Ontario," Gravelle said. "Don't forget Canada is the world's third largest supplier of diamonds. And there continues to be opportunities for growth."

The diamond facility also adds credibility for Sudbury in the mineral and gem industry, said Sudbury MPP Rick Bartolucci.

"What we do as a city defines us as a city and this facility sends out the message that we continue to be the centre for mining excellence," Bartolucci said.

De Beers has been operating in Canada for more than 40 years, but almost all the diamonds they pull from Canadian soil are processed outside our borders, said Jim Gowans, president and CEO of De Beers Canada.

"It's nice to see some production in Canada going to manufacturers in Canada, and hopefully directly into the Canadian jewelry market," he said.

The cutting and polishing facility is another stimulus for the diamond industry in Canada, Gowans said. "The next step is to develop the jewelry manufacturing and design sector."

The Crossworks facility is expected to be operational in two months with Sudbury diamonds hitting the market by the fall. Over the next couple of years most of their 50 employees will be highly-skilled and trained in a new local industry.

This creates opportunities for educational partnerships with Sudbury's three post-secondary institutions, Rodriguez said. "It's another trend to create training programs."

Crossworks is on the same page. Cox said they plan to develop training, research and development programs, in conjunction with Cambrian College.

"We want to work to develop newer technology based right here in Sudbury and sell the technology around the world," Cox said using possible new developments in robotic arm technology as an example.

There are also more artistic ways to expand the diamond industry in Northern Ontario, Cox said.

"We could work with the Attawapiskat First Nation to develop a line of diamond jewelry."

With companies closing all over Ontario, Rodriguez believes the establishment of the diamond cutting and polishing facility "says there are opportunities and possibilities out there and Sudbury was selected. We are investing in this community, not pulling back," Rodriguez said.

www.debeerscanada.com

www.mndm.ca

By JAMES NEELEY

Northern Ontario Business