Canada's NWT Lifts Polishers' Export Ban

RAPAPORT... Canada's Northwest Territories (NWT) has abolished its banon diamond manufacturers sending rough to other locations for processing,potentially enabling significant cost savings for the industry. Rules in place since 1999 have required the region's cutting-and-polishingfirms to keep all their goods inside the NWT for manufacturing. That has restrictedgrowth, as diamonds cost about $300 per carat to manufacture locally, versus$80 per carat in countries such as Namibia, according to Canadian news websiteCBC. Companies will now be able to export 70% of their goods inreturn for investing in other areas such as local jewelry manufacturing, retailand tourism, CBC reported. The government will assess businesses' variouscontributions to the NWT economy, and use its conclusions to decide how muchrough a company can send. In rare cases, firms could be allowed to ship 90% oftheir diamonds, the NWT government added. The changes also pave the way for companies to carry outhigher-value manufacturing in local hubs such as Yellowknife, while farming outlower-end goods to cheaper centers, authorities said. "The government of the Northwest Territories recognizes thatthe NWT is an expensive jurisdiction in which to operate a manufacturingfacility," the region's department for industry, tourism and investment noted. Rough diamonds available to the NWT-based manufacturers havean estimated value of CAD 150 million ($112.6 million) per year, the governmentsaid. Relaxing the rules would help realize that potential and strengthen thelocal economy, it added. Image: Diamonds from the Gahcho Ku?(C) mine in the Northwest Territories. (Mountain Province)