Doug Ashbury
Northern News Services

NNSL (Jun 07/99) - The Dogrib have joined forces with a major diamond firm, it was revealed last week.

The goal of the joint venture, Arslanian Cutting Works (NWT), is to set up a diamond-cutting and polishing plant in the North.

Among the hurdles will be a supply arrangement with BHP Diamonds. But a deal with BHP seems likely as the Arslanian family are among BHP Diamonds' preferred customers.

"We want to get into the (diamond-cutting and polishing) business. The only way is to team up with professionals," Dogrib Grand Chief Joe Rabesca said.

Dogrib Rae Band Councillor Jackson Lafferty, among a Dogrib contingent that met with the Arslanians three weeks ago in Antwerp, said the band hopes to send two people to train in Antwerp.

The Arslanian family diamond group of companies, started by Haik Arslanian, includes Arslanian Cutting Works, Arslanian Frere, and Cora.

Arslanian Cutting Works owns or operates diamond-cutting factories in Armenia and Russia. Arslanian Frere runs several diamond buying offices in Africa. The Arslanians were the first diamond buyer in Africa, after De Beers. They also marketed diamonds from Australia's Argyle mine.

Cora is a New York firm specializing in large diamonds.

The Dogrib joint venture is the fourth diamond- cutting project to have a proposal go before the GNWT (cabinet was to review the proposal Thursday before News/North's business section deadline).

Sirius Diamonds, Arctic Diamonds and Deton'cho Diamonds are other diamond-cutting and polishing firms given the go-ahead by cabinet.

Of the group, only Sirius Diamonds has reached the operational stage. Sirius, which started operations mid-May, has a supply arrangement with BHP.

Arctic Diamonds, which plans to have a plant in Yellowknife, is 50 per cent owned by seven Northern businessmen and 50 per cent is owned by Belgians and individuals from southern Ontario.

Deton'cho Diamonds Inc., which plans to set up a plant in Ndilo, is equally owned by Deton'cho Investments North Ltd. and Goldeos Ltd. Deton'cho Investments is a wholly-owned subsidiary of Deton'cho Corp., the economic development arm of the Yellowknives Dene First Nation. Goldeos is a private, Canadian-controlled corporation owned by Francis Liu and Frans van Looy. The company operates Calgary Diamond House, a diamond- manufacturing facility, and Vi Vi Jewellers, also in Calgary.

Northern firms have access to about 7,000 carats a month from BHP -- enough for three, possibly four, cutting and polishing plants.

Although the amount to be provided to local manufacturers is only about three per cent by weight, it represents about 10 per cent by value.

The GNWT guarantees bank loans made to the cutting and polishing companies that use the loans to buy rough diamonds.