by Nancy Gardiner
Northern News Services

NNSL (Oct 13/97) - While John Todd continues to lobby for a diamond-sorting plant to be located in the North, BHP maintains it has never wavered from its original plan.

That plan, says BHP external affairs spokesman Graham Nicholls, has a working estimate of a five- to 10-person sorting facility located at the mine site northeast of Yellowknife.

"What we do depends on federal government regulations, so firsthand, it's a regulatory matter," says Nicholls. "No decision has been made. It depends on amendments to Canada's mining regulations, which address requirements for diamond evaluation."

Charles Dent, MLA for Yellowknife Frame Lake says it's important to have accurate diamond valuations done, since there are 14,000 different categories of diamonds and the results can directly affect government revenues through royalties and taxes.

The Central Selling Organization which markets the majority of the world's rough diamonds has 14,000 categories for pricing.

"Our understanding is in 30 to 90 days we expect to see regulations in place pertaining to mining. DIAND will determine through mining regulations how the valuation is done," says Dent. "The feds are leaning towards limited sorting in the NWT, with valuers coming once or twice a month and taking a sampling."

"My position and most of the people in government is those diamonds will be sorted anyways, they will still have to be sorted for packages for sale, so the sorting should be done here."

"We met with eight different companies on this trip (to Europe) and each had a different perspective. The numbers (of sorter jobs for the NWT) they suggested ranged from six to 200."

With a year away from production, it's still to be decided. And BHP still has to outline its diamond-marketing plan.

Finance Minister John Todd told business people recently that if a diamond- sorting facility isn't put in the North, he will bring in a tax regime that "would choke a mule."