Gem-quality diamonds in Quebec

Patrick Godin, COO and director; Ghislain Poirier, vice-president public affairs; and Matt Manson, CEO, president and director, cut the ribbon at Renard in Northern Quebec. — Photo courtesy Stornoway Diamonds

Stornoway’s most recent accomplishment is the active operation of Quebec’s first diamond mine—Renard. The grand opening was on October 19, 2016. “It was a culmination of all of the activities that have gone on at the mine over the past 20 years in bringing Renard from an initial idea of exploration to discovery, to exploration and now production,” said Orin Baranowsky, vice-president of investor relations and corporate development at Stornoway. “It was a great day.”

The mine is located in the James Bay region of Quebec, 350 kilometres north of the Cree community of Mistissini and 400 kilometres north of the communities of Chibougamau and Chapais. Stornoway expects the mine to positively impact the communities as well as the family on whose trapline Renard is located. “About 25 per cent of the workforce is Cree,” said Baranowsky. “We are involved in training activities with the local Cree human resource development group.” Renard will employee 450 to 500 people during full operation, contribute greatly to local taxes and expect to positively contribute to the Canadian economy as a whole.

A step ahead of diamond standards
A few factors differentiate Renard from other Canadian diamond mines. “The main differentiator of Stornoway’s Renard compared to other Canadian diamond projects is that we have a road that connects the site year-round, so we can drive goods and supplies up to our mine site at any point in time,” said Baranowsky. The gravel highway helped to minimize construction costs when transporting materials and services to the site and will continue to minimize operating costs. The mines in the Northwest Territories, or even the Victor mine in Ontario, are connected by seasonal ice roads or by air.

Matt Manson welcomes guests to the grand opening of Renard. — Photo courtesy Stornoway Diamonds

Another factor that sets Renard apart from other Canadian mines is the quality of diamonds to be extracted. “The average price of diamonds that we expect to recover at Renard is higher than the world average,” said Baranowsky. Diamond prices are based on the production profile at each individual mine. “Even within Renard, the different kimberlite pipes have different characteristics and have different pricing for each of the pipes.” The expected higher price of diamonds is determined based on the quality. “We have a higher proportion of gem-quality diamonds than the average diamond mine," said Baranowsky, "and 99 per cent of our production will be for the jewelry trade.”

The largest challenge Stornoway faced to bring Renard to production was raising the funds necessary to construct the mine. The market didn’t help matters. “From 2011, even to today, it’s been a tough market in terms of raising money for mining projects. We put out a feasibility study, and we optimized that feasibility study to reduce the capital costs," Baranowsky said. "The total amount raised was $946 million, and we raised that all in a one-shot financing package that was intended to take us right through to commercial production.” Clearly, however, the Renard Project promises to reap high rewards.

Renard has been 20 years in the making. The grand opening in October brought together individuals who had worked on the project throughout various stages of its life. — Photo courtesy Stornoway Diamonds

Aside from high-quality gem diamonds, Renard is also prepared to recover diamonds that are larger than usual. “We are the first diamond mine that has a large-diamond recovery circuit in place in the initial construction,” said Baranowsky.

Quality diamonds extracted with environmental responsibility
Despite the quality of diamonds, the size of diamonds that may be recovered and the increased ease that Renard offers for transporting workers, supplies and products to and from the mine, Stornoway has also placed importance on preserving the surrounding environment.

Renard practices environmentally friendly management systems wherever possible. “The water management system in place is designed for a future environmental standard that could come down the line in terms of how mine sites deal with water usage and water production on the site,” said Baranowsky. “We’ve created a system that surrounds the entire site that collects all run-off water. The water is then pumped into our water filtration system and is only discharged into the lake when it meets, or exceeds, quality standards.”

Renard promises jewelry-quality diamonds. — Photo courtesy Stornoway Diamonds

Renard draws attention to Northern Quebec as a contender in the diamond industry. Stornoway has discovered, designed and created a world-class diamond mine that aims to contribute to Canada’s economy without sacrificing quality of the surrounding community and environment.