Korite acquisition in Alberta creates largest mine-to-market ammolite producer

When Buffalo Rock Mining acquired Calgary-headquartered Korite, North America’s largest producer of ammolite, it flew right under the mining industry’s radar, even as the company’s creations were featured in the New York Times. 

The acquisition, say Indigenous owners Tracy and Beth Day Chief of the Kainai Nation, reflects a revitalized vision for the company, in commitment to ethical and sustainable mining. The value of the transaction was not disclosed, and privately-held Buffalo Rock Mining does not disclose mineral resource information. 

Ammonite extraction is one of the rarest and most delicate mining processes in the world, and Korite established itself as the leading global producer, controlling 95% of the world’s known ammonite reserves, and selling mainly into European and Asian markets. 

Ammolites are rare, rainbow coloured gemstones derived from the fossils of ammonites — extinct marine mollusks from the dinosaur era. Ammonite fossils are mined solely in south-central Alberta to produce the organic gemstone ammolite.

The Blackfoot peoples recognize ammonite—which they call “Iniskim” meaning  ‘Buffalo Healing Stone’—as a sacred stone that brought prosperity.

Bearpaw Formation in Alberta. Image from KORITE.

Korite has been in business for 45 years and locally-based Buffalo Rock has been mining for over 20 years and the combined company employs about 30 people, including miners. The company owns the mineral rights from its flagship namesake mine. 

Buffalo Rock was mining and selling rough stones to the market, while Korite was cutting and polishing stones, sold both as preserved fossils and as art and jewelry. 

Korite ammonite fossils retail online for up to $120,000 (US$88,400) — and one fossil sold on Christie’s auction for £325,000, ($600,000), according to president Amarjeet Grewal.

“We own 95% of the market share of the ammolite deposits in Alberta, and its only found in Alberta – you can’t find this anywhere else in the world,” Grewal told Mining.com in an interview.  

“It’s mine to market – not only the mining but cutting the gemstones [and] making jewelry. We have always been mine to market whereas Buffalo Rock Mining did only the mining part,  so two different companies to the point that we were almost in competition,” Grewal said. 

 “We didn’t sell rough…we cut the gemstones and finished jewelry whereas Buffalo Rock Mining weren’t interested in finishing any gemstones –  they weren’t supplying in volume to the market.” 

Vertical integration

Now that the company is vertically integrated, Grewal said the protocols to follow both at provincial and federal levels are rigorous, and the environmental standards are high.

“We work with Heritage Canada because this is cultural property, so every piece of fossil that leaves the country needs a permit,” she said. 

Buffalo Rock Mining has, on the reserve, another 30-40 years of mineral rights, Grewal said, adding that how many acres the company mines per year will depend on the supply and demand. 

While Korite is well known in Asian markets, Grewal said the aim after the acquisition is to gain visibility in the Canadian market. 

“In southeast Asia from a feng shui perspective ammolite is a holistic stone and it brings good luck and good energy so it’s very well received, so that’s our primary market,” she said. 

Grewal also noted the irony of the company selling its Canadian fossils and jewelry in foreign markets while the brand is virtually unknown locally. 

“You’re selling overseas and in your own backyard your neighbours don’t know you exist.” 

Stay tuned as Mining.com tours the Korite ammolite mine in Alberta with Buffalo Rock Mining on a site visit in July.