Thorunn Howatt
Northern News Services

Yellowknife (Sep 18/02) - Plagued by labour troubles, Deton'Cho Diamonds has laid off its workforce and shut down its diamond cutting shop.

"We are doing some re-organizing," said Deton'Cho's chief operating officer Neil McFadden.

It's not clear how many employees were laid off, or when they will be recalled, but McFadden said plans for the company's future will be firmed up in the next week.

Deton'Cho Diamonds operates a diamond-cutting and polishing plant in Ndilo.

It began production in December 2000. About 30 diamond cutters worked there processing stones from the Ekati diamond mine.

"But it's been dwindling down over the last year," said McFadden.

Operations were suspended at the plant last month.

The diamond cutting industry is just one more sector under pressure from a territory-wide labour shortage. The NWT has posted the country's highest employment rate for the past year.

There's a huge competition for Northern workers amongst Yellowknife's three diamond-polishing factories.

Deton'Cho Diamonds' majority owner is Deton'Cho Investments North, which is wholly-owned by the Yellowknives Dene's Deton'Cho Corp.

Deton'cho Diamonds' shareholders also include Frans Van Looy, the plant's production manager during start-up, and Polar Bear Diamonds, part of Calgary and Vancouver-based Brinkhaus Jewellers.