Richard Gleeson
Northern News Services

NNSL (Jan 06/98) - An environmental group is accusing the federal government of bowing to pressure from mining giant Rio Tinto Zinc and fast-tracking the environmental review of the Diavik project.

In a Dec. 14 installment of Diamond Alert, an Internet commentary on the Northern diamond industry, the Canadian Arctic Resources Committee states: "As a result of political pressure from Rio Tinto, the Department of Indian Affairs and Northern Development has shortened the scheduled comprehensive study process for the Diavik Diamond Project."

The short article states Rio Tinto Zinc, which owns 60 per cent of the project, wants approval by the summer of 1999 to allow time to get a water licence and purchase millions of dollars in goods and equipment for shipment on the winter road.

Asked if DIAND has bowed to pressure from Rio Tinto, DIAND's director of the NWT region, David Livingstone, replied: "That's not the case. It's as simple as that."

But CARC's Kevin O'Reilly, who wrote the bulletin, said the source of the information was Livingstone himself.

"That's what he told me and that's what went (into the article)," said O'Reilly, adding he is filing an access to information application in an attempt to get proof of the political influence.

Livingstone said O'Reilly is making too much out of something that goes on in every review process -- proponents lobbying for decisions as soon as possible.

"I guess what Kevin is interpreting as political pressure are these ... concerns from Diavik and RTZ that they can use the winter road next year," said Livingstone. "If there was a change in the schedule they objected to, they would let us know.

"If Kevin's interpreting a rigorous review schedule and a tight one, admittedly a tight one, as bowing to political pressure -- well that's his interpretation."

A final decision on the project is currently scheduled for mid-June.

DIAND has reduced the amount of time provided for review of the comprehensive study by the Canadian Environmental Assessment Agency from 90 days to 60. Livingstone said that change was made because the agency said it would require no more than 60 days.

Citing shortcomings in the environmental review process, CARC, with Ecology North, bowed out of the environmental review process last October.

Winter road deadline critical

Diavik makes no bones about the importance of the winter road.

"If we start pushing this thing down too far we're going to miss that winter road window and miss a whole year," said company spokesperson Tom Hoefer.

Hoefer said he did not know if Diavik had done any calculation on how much it would cost if the review was not completed in time for the winter road. He said the company will have invested $100 million in the project by that time.

"What we've done is look at the amount of time it takes to go through a panel review and at the amount of time it takes to go through a comprehensive study, and do it right, and what we're saying is that's a workable schedule."

During a presentation to city councillors Monday afternoon, two other Diavik officials, Murray Swyirpa and Doug Willy, emphasized the importance of meeting the proposed summer decision deadline.

"A real key thing here is the need to maintain this schedule," said Swyirpa.

Citing a conflict of interest, O'Reilly excused himself from the meeting during the Diavik presentation.