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How the Hong Kong protests led to the downfall of a renowned Canadian jeweller

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The company that mines Alberta’s official gemstone is on the verge of collapse after pro-democracy protests and the pandemic have combined to wipe out its biggest markets.

Ammolite is a rare iridescent gem found almost exclusively in Alberta, and Korite International, headquartered in Calgary, now produces about 90 per cent of the world’s supply. It was recently a rising star in the world of precious stones, with demand surging in 2017. But the company’s fortunes began to crumble when the unrest began in Hong Kong. The COVID-19 pandemic exacerbated its mounting financial losses, and Korite obtained creditor protection on June 30.

Ammolite is regarded as a Canadian national treasure, meaning the federal government must approve all applications to export it.

Ammolite comes from the shells of fossilized sea creatures called ammonites. It can be found in several places around the globe, but those found in a southern Alberta river basin are unique because of a thick layer of colour and iridescence, which are ideal for manufacturing gems.

“All the colours are on top of each other, the same as a rainbow — and it’s all natural. So that makes it one of the rarest gemstones in the world,” Rene Trudel, Korite’s operation field manager, told CBC News in 2017.

“In this sediment, the preservation is incredible … you cannot find anywhere else the full spectrum [of colours].”

 

Rainbow-hued ammolite, a rare gem found only in a southern Alberta river basin, studs a piece of shale held by so-called spotters who watch for its shine as the shale is excavated. The ring on the left shows an example of the processed gemstone. (Sarah Lawrynuik/CBC)

 

In 2015, a group of Calgary investors, including former company president Jay Maull, took over Korite with ambitious plans to grow the business, scaling up mining operations and partnering with a distributor in Asia as they tried to raise the gem’s profile.

When they took over, the Korite mine, located south of Lethbridge, was expanded from less than one hectare to more than three hectares as the company said it was scrambling to keep up with surging demand. Executives had also reached a deal with a Chinese distributor to boost sales of ammolite jewelry in that country.

China has a unique interest in ammolite because Feng Shui experts are said to believe the gems can enhance health, wealth and wisdom.

In efforts to boost its domestic profile, the company signed a deal to sponsor the Calgary Stampede Royalty and was the official jewelry licensee for Canada 150, the year-long celebration in 2017 that marked the 150th anniversary of Confederation.

 

This 11-inch ammolite piece has a value of about $500,000. The fossils have been buried for the past 71 million years. The combination of heat and pressure turned the squid-like mollusc called an ammonite into the rainbow-coloured ammolite gem. (VPD)

 

The financial hardships began last year. A large portion of the company’s sales in Asia were at trade shows in Hong Kong, but those events were cancelled amid ongoing massive and sometimes violent protests, resulting in the loss of over $2.4 million in anticipated sales, according to insolvency documents filed by the company.

“Hong Kong people appreciate precious gems — the rarer, the better,” said Gordon Houlden, a former diplomat who has worked in Beijing and Hong Kong and is now director of the China Institute at the University of Alberta. He was in Hong Kong last year when Korite was at an exhibition showcasing its product to Chinese buyers.

“The demonstrations created an unusual situation: Transport was disrupted, occasional disruptions to the airport. I thought overall it was manageable, but it was having an effect on the local economy,” he said. COVID-19 has been far more challenging for Canadian companies who operate in Asia because of the travel restrictions, he said.

Korite was unable to recover this year as the situation in Hong Kong persists and revenues elsewhere in the world began to dry up amid the pandemic.

 

The first ammolite mine became operational in 1983, and four others have been dug since. (Sarah Lawrynuik/CBC)

 

The company also sells ammonite in places like tourist shops in Banff, on cruise ships and in Caribbean holiday ports. Those business lines were all hit hard as the COVID-19 pandemic forced the near total shutdown of the travel industry.

Three years ago, Korite had 280 employees worldwide. According to documents, the company currently has 12 staff members and an additional 31 employees who have been temporarily laid-off because of the pandemic.

Since early March, Korite has not recorded any new sales in the retail and cruise sectors, according to the documents, with a loss of over $6.1 million in anticipated sales.

At the end of April, the company had liabilities of $16.4 million and listed assets of about $20 million, including more than $6 million in property, equipment and mineral rights.

As with so many companies right now, the financial outlook for Korite is difficult to assess as Hong Kong remains volatile for an indefinite period and the global tourism sector is expected to take several years to recover. Even as some retail shops have reopened, there have not yet been any new orders for jewelry.

The company can’t sustain itself and must restructure its balance sheet and operating costs, according to documents.

Calls and emails requesting interviews with company officials were not returned.

The process is underway to find investors or sell either the company or assets, according to court documents, to help pay creditors.

Source:- CBC.ca

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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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