Doug Ashbury and Richard Gleeson
Northern News Services

NNSL (May 11/98) - BHP Diamonds Inc. will build a sorting and valuation facility in Yellowknife, the company announced Friday.

The plant will be used to sort and evaluate the company's rough diamonds for federal government royalty purposes.

The company, gearing up for production at its Ekati mine later this year, said it will build the plant at the Yellowknife Airport for "transportation and security considerations."

BHP has said all along that sorting and valuation for royalties will employ 10 to 15 people, said Denise Burlingame, BHP Diamonds' senior public affairs officer.

Yellowknife Mayor Dave Lovell said employment at the facility is only the tip of the iceberg.

"It's a great thing, but it's also just a first step," said Lovell. "What it does is open the door to a lot of other things, like manufacturing and jewelry-making."

Lovell said BHP's decision was the result of intense lobbying by different groups -- the territorial government, chambers of commerce, diamond task force -- with the same goal.

"Six months ago, there was no guarantee at all, in fact the odds were against us," noted the mayor.

BHP's announcement had the opposite effect in Hay River, which has lobbied long and hard to have the sorting facility established there.

Reaction in Hay River, which had been lobbying for the plant as well, was muted. "We're a little disappointed in the fact that its going to Yellowknife," said Mayor Jack Rowe.

He added that the GNWT will have to work harder to ensure that the NWT doesn't end up like the Yukon, with only one economically strong community.

"When we look at the Diavik project coming on stream, what all communities want to do is make sure they set out and clearly identify that they should be maximizing involvement and benefits to Northern communities and spread it around."

Burlingame said she did not know when construction would start.