NNSL (Mar 20/98) - Diavik Diamond Mines Inc. says environmental concerns regarding the development of a second diamond mine in the North are being properly addressed.

Murray Swyripa, environmental affairs manager for Diavik, said that an effort has been made to establish a strong working relationship with the communities which will be impacted by the development of Canada's second diamond mine.

He added that the rapid response from the federal government on the level of environmental review was a result of early and continual discussion with government officials.

"We have been talking with the government for more than a year and a half," he explained. "They knew what was going to be in the report before we presented it to the government."

Earlier this week, the Canadian Arctic Resources Committee criticized the federal government for choosing the comprehensive study instead of the more thorough panel review process, which was imposed on BHP for its Ekati mine.

Swyripa said that while the "comprehensive study" designation does not make available public funds for independent environmental reviews, Diavik does intend to make funds available to those groups.

He added that aboriginal groups have been consulted throughout the process, and that has been a focal point of Diavik's early development strategy.

Tom Hoefer, government affairs specialist for Diavik, said the company has worked hard to develop key relationships with effected communities before the arrival of the mine and production can begin, which should also remove the possibility of either side being surprised during the development process.

He added that there is no guarantee Diavik will stay at the comprehensive study level for the duration of the project's development.

"It would be nice to tell our shareholders that the review won't change," Hoefer said. "But we can't."