Richard Gleeson
Northern News Services

NNSL (Feb 10/99) - Discussion over Diavik's request for a resolution of support from city council once again on Monday focused on the limits of that support rather than the benefits of the project.

The resolution that council began with offered city support conditional on the project being developed in an environmentally responsible way.

An amendment, proposed by Coun. Kevin O'Reilly, added a few more conditions. The final resolution approved by council includes three conditions:

• that the project proves to be environmentally acceptable and receives federal environmental approval

• that Diavik makes significant efforts to retain benefits for Northerners in general, including the rough sale of diamonds to local secondary industry

• that Diavik offers incentives for its employees to live in the North

Before making its decision, council heard two presentations, from Ecology North and environmentalist Chris O'Brien. Both opposed the resolution.

"It seems through its resolution the city is continuing to put all of its economic eggs in one basket," Ecology North director Andrew Spaulding told council. "We'd like to see more sustainable economic activities."

Though a member of the same organization, O'Brien said he was speaking as a private citizen. He offered information about Rio Tinto, which owns Diavik. The mining giant, said O'Brien, has proven less than environmentally and socially responsible in other countries.

O'Brien added that he still does not know why Diavik had requested the support of the city.

"Why does Diavik want it now?" he asked.

"There's no strategic reason at all for it," said Diavik spokesperson Tom Hoefer. "We just wanted to hear something positive from the city."

Hoefer said from Diavik's perspective the changes made Monday night were not an improvement.

"It started off a little clearer," said Hoefer. "Some of the conditions that were put on it were fine, but my comment would be that it's interesting when you get a town like Hay River that says 'What can we do for you?' and the City of Yellowknife says 'This is what you have to do for us.'

"There's still a little bit of mistrust, perhaps," Hoefer said.

O'Reilly had previously declared a conflict of interest during council and committee discussions of Diavik but did not Monday night. O'Reilly works for the Canadian Arctic Research Committee, which has been critical of the environmental review of the mine.

Yesterday O'Reilly said on the day of that meeting he approached the city clerk and a city lawyer to ask for advice on whether he was in a conflict of interest.

O'Reilly said he will continue to declare a conflict for discussions focusing on the environmental assessment process.