De Beers issued a statement, saying, “The diamond royalty as proposed in Ontario provincial budget has not previously been covered in any dialogue between the industry and the Ontario government. We look forward to the opportunity to work with the government on its proposed diamond royalty to ensure that the economic development implications for future exploration and mine development are clearly understood.

“We are concerned about these apparently arbitrary changes to the tax structure so close to the start of production at Victor. Once we have more information regarding how its proposed diamond royalty will be implemented, we will be in a position to assess the impact on the economics of the Victor diamond mine.”

The Toronto Globe and Mail reported on April 10 that Attawapiskat First Nation Chief Mike Carpenter, in a letter to Ontario Premier Dalton McGuinty, called the royalty a tax grab that would negatively impact aboriginal residents. “You and your officials are well aware that the only diamond mine in Ontario, and thus the only one to be immediately impacted by your decision, is located in the traditional territory of the Attawapiskat First Nation,” Carpenter wrote, “Given the obvious importance of this project to our community and to future exploration in our lands, we should have been consulted. This increase constitutes little more than a tax grab by your government that will not benefit our First Nation or others.”

The Globe and Mail also quoted De Beers Canada President and CEO Jim Gowans as saying, “The diamond royalty doesn’t meet what I call the smell test for fairness. It’s a bit surprising because that’s one of the theme songs for Mc- Guinty’s government.”