Thirty-three tenders up for bids in round one of construction
Doug Ashbury
Northern News Services
NNSL (July 19/99) - One comment sums up the mood of the latest round of Diavik Diamond Mines' meetings: "Let's build a mine."
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DIAVIK'S SHOPPING LIST Purchases
* Cement (150 tonnes)
Contracts
* Civil earthworks/North Island. Earthworks, site preparation, grading, storm water management and road construction related to a list of facilities, such as the 2,000- metre airstrip among them
Source: Diavik Diamonds, Northern Business Opportunities Profile |
The comment was made Wednesday as Diavik handed out information on its first batch of contracts for the building of the proposed $875- million Diavik diamond mine.
About 140 people -- mostly Yk business owners -- packed the Explorer Hotel in Yellowknife to find out more about the millions of dollars in contract opportunities Diavik Diamond Mines has up for grabs.
Other similar meetings were held in Kugluktuk, Rae-Edzo and Hay River.
The contracts range from supplying fuel, lumber, and snowmachines to security and catering. If the project goes ahead, the 2000 construction plan will focus on preparing the Lac de Gras site. Airstrip, roads and excavation work is among areas covered in the 2000 plan.
Major construction work would then take place in 2001 for planned startup in 2002.
In all, Diavik Diamond Mines plans to award 33 contracts between now and February of next year.
Among the first work needed is preparing fuel storage tanks, Bob Sinclair said.
"Hopefully (those) fuel tanks will be fabricated in the NWT," he said.
"What we've always said, and we mean it, is we're going to give preference to Northern suppliers, labourers and contractors."
Sinclair's resume includes a long list of management positions, among them commissioning manager at the Argyle diamond mine in Australia. Originally from South Africa, he has worked in mining not only in Australia but also in Namibia, California and New Guinea.
As proof of their commitment to get NWT companies on board, Diavik "will break down contract packages into sizes Northern companies can handle," Sinclair said.
But Diavik expects the bids to be competitive. There will be no government-style business incentive policy.
But a "few major contracts we are not going to bid in the North," he adds. Sinclair cited structural steel work as one such contract.
Allan LaFrance at Jacobs Oxygen and Equipment Sales said the lease-to-own contract involving generators, "would definitely be a benefit to his company."
Randy Kotylak, Bearing Supply branch manager in Yellowknife, said Diavik's "self-imposed commitment" to get local companies on board is unequalled.
Diavik project owners Rio Tinto and Aber Resources' decision to build the mine will not be made until after government water licence and other permits are approved. Diavik owners are anticipating regulatory approvals later this year. All the contracts will be issued through Diavik Diamond Mines.
Buying steel and fabricating the fuel tanks is one of the projects that will be awarded before the permits would be in hand.
Approvals in 1999 mean owners will meet the 2000 ice-road window. In anticipation of approvals, Diavik owners have to be ready to haul mine construction materials up the winter ice road, Doug Willy, a Diavik manager, said.
By offering information about these tenders, Diavik is not attempting to "pre-empt" any of the processes. This is a normal part of the plan in light of the ice road and construction timetable he said.
"To make it work, we have to move the process ahead."
Once operational, Willy said 131 of the 350-450 people needed to run the mine will not be Northerners. But Willy estimates with training, the mine can be 100 per cent Northern in 12-14 years.
