Doug Ashbury
Northern News Services

NNSL (Jun 16/99) - They weigh in at 1.3 carats and 1.5 carats and they're Northern-made. Now, they are Northern-owned.

Sirius Diamonds announced Monday two diamonds -- the first stones ever to be mined and polished into finished gems in the NWT -- have been bought by the Government of the Northwest Territories.

"We're delighted the Government of the Northwest Territories chose to purchase these historic gems," Sirius Diamonds president Stephen Ben-Oliel said.

"The original rough crystals were purchased from BHP Diamonds earlier this spring and processed at our new factory by Northern workers, making these magnificent gems the first product of Yellowknife's emerging diamond-polishing industry," he said.

The two gems have been laser-etched with NWT1 and NWT2 and with the polar bear logo. Together, the pair would fetch about $50,000 at retail.

For Monday's opening, mining, government, business and diamond-industry representatives packed Sirius' plant, located at the Yellowknife airport.

It was a rare chance to get a close look at not only the first-ever Northern-made stones, but also the processes involved in taking a rough diamond to a finished product.

The $2.5-million plant is the first of its kind in Canada. It marks what many Northerners are hoping is the start of a new industry here.

Sirius Diamonds chairman Jim Ben-Oliel said the demand for Canadian diamonds has helped offset the higher costs of doing business in the North.

Because Northern diamonds are popular, Sirius has saved marketing costs, he said.

"Wages are higher, but that can be offset by the lure of Northern diamonds. (They are) easier for us to market."

Ben-Oliel also said he would like to see more NWT-based cutting and polishing plants.

More plants will help lower costs, he said.

"If enough (diamond- cutting and polishing) facilities come here, it will warrant service people," he said. Most of the equipment used in the cutting and polishing industry is European-made.

Referring to diamond cleaning and work related to the diamond wheels, Ben-Oliel said, "Some operations could be pooled."

Sirius expects to produce about 5,000 carats a month. Currently, the company employs 21 people at the Yk facility. That number is expected to hit between 40 and 50, Ben-Oliel said.

A second group of 10 Northern students recently started a diamond-training course offered through Aurora College.

"By working closely with the GNWT and Aurora College, we are confident that we will be able to attract and train a highly-skilled workforce here in Yellowknife," Ben-Oliel said. A diamond cutter-polisher can make $3,000 to $5,000 a month.

Peter George, among the latest group of trainees, called the facility a "good learning environment" despite the fact that a mistake could be costly.

On wages, he said: "The potential is here to make a good living."