Not the Inuit's best friend

Last Modified: 30 Aug 2007
By: Julian Rush

Diamonds are also fuelling the Arctic "cold rush" - but the Inuit say mines pollute lakes and obstruct caribou migration.

Russia and Canada are now among the the world's leading diamond producers. Together they account for over a third of the world's supply.

Most of these diamonds are found in the far reaches of the Northwest Territories, the so-called "barrens", which sit near the border with the Arctic Circle.

Jericho is Canada's latest diamond mine.

In the last decade there has been an explosion in prospecting in Canada's Arctic provinces.

Ice roads are built each winter to bring supplies in for the whole year.

But climate change means the winters are getting shorter. Last year that caused a financial crisis for Jericho's owners.

Even so, in just 10 years Canadian diamond mining has boomed from nothing. Jericho was the third mine to open last year.

Canada now produces 12.5 million carats a year - 15% of the world's supply.

With the Ekati and Diavik mines, Canada now produces 12.5 million carats a year - 15% of the world's supply, worth just under £1bn.

And mining companies are spending as much again on developing more mines and on exploration.

The largest diamond found so far in Jericho weighed 60 carats.

The Inuit say the mines obstruct caribou migrations, pollution in lakes and rivers kills fish.

There has been consultation and agreements, but critics say too few of the financial benefits reach local people.

Nunavut provincial leaders insisted that some of the diamonds were polished locally to foster regional development. Instead, it's led to a boom in immigration.

And the Russians are expanding their Arctic diamond mining too. With such riches at stake, no wonder the Arctic countries are facing off over territory.