Doug Ashbury
Northern News Services

NNSL (Jun 16/99) - The NWT government has called it quits with Rio Tinto subsidiary, Diavik Diamond Mines.

The GNWT announced yesterday it has postponed socio-economic agreement talks with Diavik Diamond Mines, a subsidiary of Rio Tinto.

Rio Tinto and Aber Resources are attempting to get approval for a diamond mine at Lac de Gras.

The talks have been postponed until Resource, Wildlife and Economic Development Minister Stephen Kakfwi meets with Rio Tinto and Aber executives.

Kakfwi will meet with Aber president and CEO Kenneth Hanna, June 21 in Vancouver and with Rio Tinto chairman Robert Wilson, July 5 in London.

"We need a firm commitment on the provision of rough diamonds to Northern manufacturers. Resolution of this issue is critical to the continued support of this project by the GNWT," Kakfwi said.

"We feel they're (Diavik Diamond Mines officials) are not taking us seriously. It's time to talk to someone else."

In a statement, the GNWT said although the responsibility for Northern resource development remains with the federal Department of Indian and Northern Affairs, the federal government recently announced it would not make the provision of rough diamonds to Northern manufacturers a condition of project approval.

"We have proven that a viable cutting and polishing industry in the North is achievable," Kakfwi said.

"We are not prepared to allow the economic opportunities from this development to just slip by."

The socio-economic agreement, which Kakfwi had hoped would have been completed Monday, involves five aboriginal organizations, the GNWT and Diavik. It is an effort to maximize territorial employment and business opportunities and expected to address secondary industry and value-added opportunities and involve monitoring and mitigating community, cultural and social effects, Kakfwi said.

On areas other than supplying rough diamonds, Kakfwi said socio-economic talks were positive.