Doug Ashbury
Northern News Services

Yellowknife (Apr 10/00) - When it comes to business opportunities for construction companies in the NWT, those that recognize the value of active partnerships with aboriginal groups are apt to be more successful, says Diavik Diamond Mines president Stephen Prest.

"Diavik will want to align with companies that subscribe to aboriginal participation," he said.

But "mining companies are still wrestling with where the balance is," he adds.

Prest made the comments at the recent NWT Construction Association annual general meeting.

As for the construction schedule of the Diavik diamond mine, Diavik might now be able to squeeze a bit more out of its 2000 construction plans.

"Unfortunately, with the shortened availability of the winter road, we have had to put off some construction activities originally scheduled for 2000 into next year," he said.

"I can report, however, that we have now been able to transport enough material up the winter road to put us in a position to achieve about 30 to 40 per cent of our original 2000 program. With a bit of luck, it may get a bit higher."

Asked if a reduction in the planned construction program for this year will translate into a delay in production, scheduled for 2003, Prest said, at this time, it is difficult to say one way or the other.

"We're still evaluating the impact of the delay. I think it's had quite a serious effect for this year but overall, the same amount of work will be done," he said.

Later this year, Diavik expects to be awarding construction contracts for work to be done in 2001. Diavik will again hold meetings on details of the contracts that will be available.

Prest said Northern companies will do 70 per cent of the work at the Diavik diamond mine site.

"Economic development in the North has literally exploded in the past two to three years," Prest said.

BHP, which owns 51 per cent of the Ekati diamond mine, has raised the NWT's gross domestic product by about 20 per cent, Prest said. And he adds that Diavik is expected to make a similar contribution to the territorial GDP.

Diavik recently signed a participation agreement, also known as an impact benefit agreement, with the North Slave Metis Alliance. Prest said other agreements are expected to be concluded soon.

The Diavik water licence could be issued in the next one to two weeks, he said.