by Mark Sproxton
Northern News Services

NNSL (NOV 06/96) - "Whew."

With one word Jim Excell summed up the feeling of the Yellowknife business community after approval for BHP Diamonds' $900-million diamond mine was announced Friday.

And with that opening statement, BHP's manager for the diamond project said he looked forward to doing business with local and NWT companies and people.

"Yahoo," said Force One's Doug Witty. "I think that this is what people were waiting on."

He, like many other business people in Yellowknife, believe the approval of this project at Lac de Gras and any following developments will give the local economy a shot in the arm.

"I think as long as the environmental safeguards are in place and they live up to their agreements, I'm happy about it," said Bill Stirling of Overlander Sports.

"There will be lots of money coming into the community and people will feel more confident about their spending."

Rod Stirling, head of the Yellowknife real estate association, said it is the positive news the business community needed.

"The government has created a real air of uncertainty," he said of the recent string of layoffs. "We needed a shot in the arm. It will create some much needed activity in town."

But he doesn't believe the announcement will turn into instant sales on the housing market.

"It's definitely not going to be overnight riches," he said. "It's a little too early to tell but I think it will be felt over the next couple of years."

Friday's announcement, made by Ron Irwin, minister of Northern development, was also warmly received by other companies hoping to establish a diamond mine in the NWT.

"The announcement reinforced our commitment to proceed with our project and our confidence we can get the required work permits in place," said Jordan Ethans, vice-president of corporate affairs with Aber Resources Ltd.

Aber is hoping to develop a diamond mine near the BHP project on Lac de Gras. Aber is in the pre-feasibility stage of its work.

"We feel this should clear the way for other groups that have potential economic pipes to be given the same courtesy when (going through) the permitting process," he said.

The NWT Federation of Labor also welcomed the announcement.

"It's encouraging to see development on the horizon that will mean jobs for Northerners," said president Jim Evoy.

And even though there has been little talk about a union workforce at the mine site, Evoy said it is a reality in the North.

"The mining and construction unions will be a part of the project," he said.

With Friday's announcement BHP reinforced its commitment to employ at least 33 per cent Northerners during the construction phase and up to 72 per cent Northerners when production hits full tilt.

In late October BHP signed a socio-economic agreement with the territorial government committing to numerous activities that would benefit Northerners and Northern business.

Under the agreement BHP and its contractors must also commit to training Northern residents.

Also during the construction phase at least 28 per cent of goods and services will be purchased from Northern business and will increase that share to 70 per cent during operation.

BHP will spend about $30 million a month for the next 20 months preparing for production it hopes to begin in the second half of 1998.