Doug Ashbury
Northern News Services

NNSL (Sep 02/98) - Diavik Diamond Mines Inc. will submit a key report to government by mid-September, Doug Willy, the company's manager of public and governmental affairs, said Monday.

Diavik's environmental assessment report will respond to the 21-page federal environmental guidelines released Aug. 26.

The guidelines, compiled by the Department of Indian Affairs and Northern Development (DIAND), Fisheries and Oceans and Natural Resources Canada, are part of the required environmental review process.

Diavik's report will cover the potential effects of its Lac de Gras diamond project.

Diavik has been able to anticipate the guidelines, Willy said.

"There were no surprises in the guidelines. The Diavik team did an excellent job," he said.

"We've been working on this (the environmental assessment report) for some time. We started the process about three years ago with community consultation."

Willy estimated Diavik has held about 200 meetings, some with as many as 50 community residents while others have included only a handful of people.

Diavik must now go out to various communities and explain what the environmental assessment is all about.

That will take four to five months.

"Our concern is that the whole thing stays on schedule," Willy said.

If Diavik is to meet key target dates it will need to obtain permits by Oct. 1999, he said.

Willy said the company would have liked to see the environmental assessment guidelines a bit sooner. The company filed its project description in early March.

According to DIAND, the environmental assessment phase is scheduled to be completed in July '99.

This means, barring any deficiencies, the permit phase will be complete in Dec. 1999, two months beyond what Diavik would prefer.

"If we are to meet commitments, we need to be on the ice road in January 2000," Willy said.

The Lupin ice road is key because it is the artery that the company will use to transport materials and equipment to the site so mine construction can start.

Following the environmental process and subsequent permit, Diavik is hoping to start production of rough diamonds in late 2001 early 2002.

Diavik is aiming to become North America's second producer of rough diamonds after BHP Diamonds Inc.

BHP, with its joint-venture partner Dia Met Minerals, has scheduled an official opening for Oct. 14 at the Ekati site.