by Derek Neary
Northern News Services

NNSL (Apr 13/98) - Hay River Mayor Jack Rowe is hoping he's found a route to get his town a piece of the secondary diamond industry.

According to Jim Rothwell, BHP's group general manager, a sorting and grading facility will be awarded to a community in the North. The news came during an NWT Chamber of Commerce luncheon April 4.

Originally, BHP planned to built the plant at the Ekati mine site and the change is being seen as an attempt to demonstrate the company's support for Northern businesses.

Which community will get the plant has yet to be announced, but Yellowknife and Hay are reportedly the leading contenders.

"We set out to get that type of commitment at the very start," Rowe said. "That we see as a very important achievement because it's something we started (looking into) back about four years ago."

The plant, wherever it is built, is expected to employ 10 to 15 employees.

"It's not huge but it's easier to fit an organization like that into smaller communities because they're not seen to be an economic lifeline ... then you don't have a requirement by industry to feel that they have to sustain an economy," said Rowe.

He said a review process will likely be conducted by BHP before the decision is made, with cost-efficiency being a major factor.

"Taking all things into consideration, I think, we, as a community have as good an opportunity as Fort Smith, Inuvik, Yellowknife."

Among the advantages of a Hay River location, Rowe listed its geographical location (no ferry interruption considerations for southern road links), lower electrical and housing costs than Yellowknife and a competitive business sector that can provide adequate services.

BHP also revealed they are now hiring long-term staff at a rate of 10 to 12 employees per week and will continue to do so until October.

"That's where a lot of the benefits to places like Yellowknife will come in," Rowe said. "With some of the layoffs with Giant and Con (gold mines) recently, I imagine there's some staff that would be looking for employment."

Regardless of whether or not Hay River is chosen, the town is already beginning to reap some benefits from the diamond industry, according to Rowe. He estimated 75 trucks were needed to make fuel runs to the Ekati Mine. If Diavik comes on stream, there will likely be a need for Inland Cement's services, Rowe predicted.

He also foresees RaiLink being aggressive enough to increase freight traffic through the town -- perhaps creating a staging area so the mining cargo could then be transferred to the trucks.

"I think there are some positive things that are coming as long as we all try to work with industry and government to ensure we create a positive environment," Rowe said.