by Richard Gleeson
Northern News Services

NNSL (Mar 11/98) - The Diavik diamond project officially kicked off its environmental assessment process Friday.

Diavik, Canada's second diamond mine, triggered the environmental process by releasing its plans to mine a diamond find north of Yellowknife it estimates is worth $5.8 billion.

In navigating the hurdles of the environmental assessment process, Diavik will lean heavily on lessons learned through close observation of the two-year process BHP, Canada's first diamond mine, went through.

"We'd be silly if we hadn't learned from the process BHP has done," said Doug Willy, the project's manager of public and government affairs. "We were able to sit back and see what didn't work and adapt our process. No doubt about it, BHP has done some excellent work and we've gained from it."

Diavik's approval process will likely not be identical to BHP's, said Debra Myles, DIAND's project manager for the Diavik diamond project review.

Because it was the first of its kind in Canada, BHP was subject to a process overseen by an Environmental Assessment Review Panel.

Diavik is asking the federal government for what's known as a comprehensive study.

Decision-making in the comprehensive process is done by experts in relevant government departments and agencies. Two or three independent, government- appointed experts call the shots in a panel review.

Officials from federal departments and agencies responsible for different aspects of the project will gather for an all-day meeting tomorrow to determine a form and time-line for Diavik's assessment.

"We don't have what I would call significant public concern so far," said Myles, referring to one of the requirements for a panel review. "There are always provisions down the road, if we get into a comprehensive study to go to a panel review."

The first step of each process is to circulate the project description through government departments. Departments will tell what further information they require. In fulfilling those requirements Diavik will compose the lengthy document that will serve as the reference for the environmental assessment process.

The most technically challenging aspect of Diavik's plan is a series of dykes it intends to build to allow access to the four pipes, all of which are under Lac de Gras.

The Diavik Diamond project is the second richest diamond find in the world, according to a 1996 ranking by SouthernEra Resources Ltd. Diavik estimates gem diamonds will account for more than 90 per cent of the value of the mine's production.

Willy said no marketing plans have been developed for the diamonds, which will be split 60-40 between Rio Tinto and Aber.

Last month's issue of New York Diamond magazine quoted rough diamonds sales manager for Argyle, an Australian Rio Tinto diamond project, as saying there's a "good chance" Rio Tinto's share of Diavik diamonds will be marketed through Argyle's marketing organization.

Diavik has invested $70 million in exploration to date. Developing a mine will require another $875 million, it estimates.

Diavik's estimates of its resource increased 85 per cent, from 19.5 to 36 million tonnes, from 1996-97.