Yellowknife (Apr 30/03) - Canada Dene Diamonds plans a May startup for its Ndilo cutting and polishing plant.

The company had hoped to have the plant in operation in March after closing down last year as Deton'Cho Diamonds.

Deton'Cho CEO Neil McFadden hopes to see his empty plant humming by the end of May.

The new firm is owned by Deton'Cho Corporation in partnership with international diamond giant Schacter and Namdar.

Deton'Cho CEO Neil McFadden said the delayed start-up is due in part to the time required to obtain visas for plant management and other key personnel.

The company is initially bringing in 14 people -- three managers and 11 diamond cutters -- from England and Africa.

"As of this week we have all of the required immigration papers in place and approved and we will have them here shortly," he said.

"Canada Dene Diamonds is very close to cutting diamonds."

Recruiting and training cutters and polishers locally will follow, he said.

"We will certainly be hiring some local people who have some training in this field.

"We aren't sure yet how many. We have to get the plant up and running before we begin hiring trainees, but we are interviewing for those positions."

High worker turnover and a lengthy learning curve for trainee replacements was one of a number of factors contributing to Deton'Cho Diamonds demise.

The plant employed 35 people at peak.

Other problems included under-capitalization, inefficient plant equipment and a lack of marketing expertise.

New partner Schacter and Ramdar was chosen from several interested firms for its manufacturing and marketing experience, McFadden said.

Schacter and Namdar operates in Israel, New York, South Africa, China, Thailand, Italy, Belgium, Japan and Botswana.

The company's cutting and polishing plant in Botswana employs 500 people.

McFadden said Canada Dene Diamonds will draw heavily on Schacter and Namdar's manufacturing expertise.

"Because of the low margins, you have to be very good at this to be competitive and make a profit. The trick is maximizing the value of the diamond -- that takes many years of experience."

The plant will buy gem-quality diamonds from BHPs Ekati mine initially and explore other opportunities down the road, said McFadden.

Deton'Cho Corporation is involved as owner or partner in 12 other businesses in NWT.