Diamond rush born distrust3/18/2023 In recent years, the productivity performance of oil and gas extraction in Canada has been dismal. This possibility has important consequences for mineral-producing firms making large investments in future capacity, for mineral-producing countries dependent on revenues from mining, and for society as a whole in terms of the long-run availability of nonrenewable commodities and the future threat of mineral depletion. If so, real commodity prices will be lower over the long run than many now assume. In particular, they suggest that new technology may well continue to offset most or all of the cost-increasing effects of resource depletion. ![]() These findings have important implications. Aluminum on the other hand did not experience the same jump in real price over the 2000s nor did it suffer a significant drop in productivity. For copper, iron ore, and coal, it finds substantial support for the view that much of the recent drop in productivity can be attributed to higher prices. It then surveys a number of the available empirical studies of productivity trends. It first provides a conceptual analysis that shows that much or perhaps even all of the recent drop in productivity could be due to the unanticipated growth in market demand and the sharp jump in prices it provoked. As a result, real mineral commodity prices will be permanently higher in the future. This decline, following years of rising productivity, has led many to conclude that new technology can no longer offset the adverse effects of resource depletion. Over the past decade, both labor and multifactor productivity have fallen in copper, iron ore, coal, and many other mining operations, causing production costs to rise. This has included the approach adopted to collaborating with the local community, incorporating aboriginal (local) ecological knowledge, conducting scientific surveys while building local capacity for further scientific investigation, and finding a solution that addressed the disparate interests of the various stakeholders in this process. In this paper the path that led to the creation of these sites is traced. The process has taken two decades to complete, in part due to misunderstanding and mistrust of government on the part of aboriginal residents. The authors worked with the community of Qikiqtarjuaq, Nunavut, to create two new National Wildlife Areas that protect the colonies, and the nearby marine area, of approximately 500,000 birds during the breeding season. Some key habitat sites for these have already been protected, but many others lack official protected status and remain vulnerable to various anthropogenic threats. The Canadian Arctic provides important habitat for millions of marine birds. Investment by Canadian firms in each stage of the diamond pipeline could promise large returns due to the very high value added associated with the overall diamond industry. Although the mining of rough diamonds is lucrative in itself, there is also much value added in the manufacture and retailing of diamond jewelry. Based on a rough simulation of the growth of the Canadian diamond mining industry in the 2001-2006 period, average annual labour productivity growth in the overall mining industry will be between one and two percentage points higher than if the diamond mining industry did not exist. Given the very high level of output per hour in the diamond mining industry ?reflecting a high degree of economic rent ?and the strong expected growth of the industry in the coming years, the labour productivity growth of the overall mining industry will be favourably affected. ![]() Diamond production accounted for 19.9 per cent of total real output in the Northwest Territories in 2002, representing a phenomenal impact, especially given that the industry did not exist five years before. These mines are all located in the northern regions of Canada, and hence contribute substantially to the growth of these regions. Canada’s share of the world value of diamond production was 15 per cent in 2003, the third largest worldwide. Since then the Diavik mine has begun production, and two other mines are slated to begin production within two years. Diamond mining in Canada began in 1998, with the first production from the Ekati mine in the Northwest Territories.
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