The Canadian Competition Bureau has sent out a draft of a proposed code, which would trace each and every Canadian mined diamond from the mine to the retailer. This would be a total tracking chain of warranties to enable the marketing of 'made in Canada' diamonds around the world.

The problem with this system is that a Canadian diamond is defined as 'a diamond mined in Canada irrespective of the place of processing'. So, according to the proposal by the Canadian Government, rough that is cut and polished in Tel Aviv, Antwerp, Mumbai, or South Africa would still constitute as a made in Canada diamond.

Obviously, not everybody in Canada is happy with this. There is pressure by the Northern Territories to consider a diamond to be 'made in Canada' when it was cut and polished in Canada itself. The major Canadian mining players are opposed to such a definition, as they don't believe that an industry in Canada is viable.

It is very interesting to see how the Government of Canada will proceed on this issue and whether it will throw its support behind the mining interest, or behind the interest of the still, very fledging, manufacturing industry. The last chapter on this hasn't been written yet, but it is certainly an interesting story to follow.