At this week's conference in Vancouver, some 500 members of the Canadian diamond community convened to assess their future. Presently, over 200 exploration companies are searching for diamond mines in the Northwest Territories, Quebec, Saskatchewan and elsewhere.

Within the next three years Canada's annual diamond production will probably range between US$1.3 -1.5 billion. One of the better ways to get access to attractive rough is manufacturing in the Canadian North. It seems that Canada is now entering phase two of the domestic manufacturing revolution.

One factory has effectively been taken over by Rosy Blue; a majority stake in another factory is expected to be taken by a prominent New York Sightholder; and Tiffany's has apparently already decided to set-up a major manufacturing facility as well.

The presence of such formidable industry players should put to rest any doubts on whether manufacturing is a worthwhile proposition. In spite of the level of labor cost, the fact that factories can get rough of three grainers and higher, hand-picked, with a guaranteed supply at market prices, makes manufacturing in Canada attractive.

But what is more significant is the apparent recognition by the Canadian government authorities that manufacturing only has a future if it is in the hands of companies with an excellent and proven polished marketing ability. And that is happening.

Later this week we expect a dozen or so Canadian diamond manufacturers to convene in Vancouver to establish a Canadian diamond manufacturers association. They will actively lobby governments at federal and provincial levels to improve Canada's infant industry's competitive position. A few isolated far-sighted Indian, Israeli and Belgium diamantaires were visible in Vancouver as well.

If one recognizes that 50% of all money invested worldwide in diamond exploration is spent in Canada, and if one realizes that Canada is likely to be the only producer (!) who will grow significantly in the years ahead, one can't say often enough that ignoring Canada means forfeiting exciting business opportunities.

It is often forgotten that diamonds are a non-replenishable commodity, while production from other mines will gradually diminish, Canada may eventually become a most important diamond producing country in the world, coming close, or even exceeding, the production of South Africa, Russia and Botswana. It's a matter of time.