Jeff Colbourne
Northern News Services

NNSL (Jun 10/98) - Victoria-based Sirius Diamonds has been guaranteed a portion of BHP's rough diamonds from the Ekati mine and hopes to be cutting and polishing them in Yellowknife by February.

James Ben-Oliel, the owner of Sirius with his son, Stephen, was in Yellowknife yesterday meeting with territorial officials. Following a school presentation on diamond manufacturing, he discussed the prospects of a factory.

"We're still discussing that with the government, nothing firm yet but we're hopeful and optimistic," said Ben-Oliel.

The 270-square-metre factory will likely be located near the BHP sorting and valuation facility on airport property to take advantage of BHP's high-security measures.

The company promises to hire about 30 workers in the first stages. Then it plans to add a second shift and another 20 employees. At the start 25 or 26 of the workers will be long-time Northerners, turning the workforce into 100 per cent Northerner in the long run.

"We're hoping to be in business by next year," said Ben-Oliel. Sirius wants to be producing shortly after BHP gets up and running in the fall, he said.

Before Sirius proceeds with the facility they need the approval of the territorial government. And there's a list of questions that have to be answered first, including how the company will market the diamonds, how the diamonds will be cut and where the training is going to come from.

The cost of setting up shop in Yellowknife will cost Sirius about $1 million in machinery alone. Stock, a building and research and development will push the price tag higher.

To market the diamonds from the North, Sirius has trade-marked several names, including Canadian Northern Lites and Arctic Fire and Ice.

"We're going to be pushing the Northern diamond," said Ben-Oliel.

Norther diamond advertisements are expected to hit television sets and diamond stores early next year.