NNSL (Mar 18/98) - The environmental review of the Diavik diamond mine proposal won't be strict enough, according to the research director of the Canadian Arctic Resources Committee.

Kevin O'Reilly said this week that the Department of Indian Affairs and Northern Development's choice of a review process was made quickly, and without any public consultation.

"They received the project description on a Friday," he said. "Three or four days later, they said that the project only warrants a comprehensive study."

Last week, DIAND said the Diavik mine, to be built on the shores of Lac de Gras a few kilometres from BHP's Ekati mine, said there was no need for concern about the impacts of the mine at this time.

"We do not presently have clear indications that the environmental effects of the proposed project will be uncertain or significantly adverse or that there is significant public concern," DIAND said in a March 12 announcement.

There are three levels of environmental assessment at Ottawa's disposal: screening, which requires a company to follow a checklist of requirements; comprehensive study, which also includes a number of acceptable threshold levels which vary according to the size of the project; and a full-scale panel review, which BHP was required to follow.

The Diavik project will mark the debut of the comprehensive study process in the NWT. The decision from DIAND does not set out a plan for public consultation, nor is there any indication of available funding for an independent technical review.

"Diavik has a 138-page report which outlines the public concerns over the development of the mine," Reilly said. "I have to wonder how the government could say there was no concern when even the company knew there were public concerns."

Initial estimates suggest the mine would have a life span of up to 22 years and could be worth $5.8 billion. During the life of the mine, Diavik says it could spend $875 million to develop and will pay $70 million in royalties to the federal government every year.