by Doug Ashbury
Northern News Services

NNSL (Oct 03/97) - Diamond resources and their benefits will be protected for Northerners, Finance Minister John Todd promised members of the legislative assembly Wednesday.

If the NWT is to benefit from diamond mining, it must have sorting and evaluation facilities to create jobs and benefit from a fair royalties system, he said.

The federal government currently controls resources in the North.

"Our principle concern is on the royalty side," said Todd.

Earlier, at a meeting of the NWT Chamber of Commerce over the weekend, Todd vowed that if a diamond sorting facility isn't put in the North: "I'll bring in a tax regime that would choke a mule."

Premier Don Morin told the assembly: "Ministers Todd and (Stephen) Kakfwi are now leading our effort to convince Department of Indian Affairs and Northern Development minister Jane Stewart and her department to require detailed sorting take place in the North."

In the next few days, Kakfwi, as minister of renewable resources, will be providing members with an overview of the significance of the diamond industry, Morin said.

Federal officials appear to support valuation in the North, he added.

The federal government can gain $2.5 billion in royalty revenue during the 25 year life cycle of the BHP Diamonds' mine. The GNWT stands to gain only $130 million.

Under the current formula, for every dollar in royalty revenue from Canada's only diamond mine, the North will get four cents while the federal government get 96 cents.