Doug Ashbury
Northern News Services

NNSL (July 07/99) - Diavik Diamond Mines Inc. has chosen a joint- venture company set up by Northern Aboriginals and Canada's largest engineering firm to play the lead role in the design and building of their proposed diamond mine, it was announced Monday.

Nishi Khon/SNC-Lavalin, appointed project engineering manager for the engineering and construction phases of the Diavik project, is jointly-owned by the Dogrib Group of Companies and SNC-Lavalin Group Inc. of Montreal.

Choosing Nishi Khon/SNC-Lavalin comes as no surprise as the firm has been associated with the Diavik project for months. The firm is currently assisting Diavik in completion of the feasibility study and execution of the preliminary engineering for the permitting and licensing process.

Diavik also announced H.A. Simons Ltd. of Vancouver has been appointed project construction manager.

H.A. Simons has extensive construction management experience on a number of projects in Northern Canada including Ekati, Diavik said.

"H.A. Simons will open an office in Yellowknife for the project," Diavik spokesperson Tom Hoefer said. The plan is to open the office this summer.

Nishi Khon/SNC-Lavalin will be responsible for detailed engineering of the Diavik project as well as all major procurement activities for the next phase of the project.

Key members of Nishi Khon/SNC-Lavalin and H.A. Simons will be introduced to the Northern business community during tender information sessions scheduled later this month.

Mine construction startup in 2000 hinges on approval and implementation of recommendations in the comprehensive study report, part of the Canadian Environmental Assessment Act, permits and licences, and investor approval.

The Diavik project is an unincorporated joint venture between Diavik Diamond Mines (60 per cent) and Aber Diamond Mines (40 per cent). Diavik Diamond Mines, located in Yellowknife, is wholly-owned by London-based Rio Tinto. Aber Diamond Mines is wholly-owned by B.C.-based Aber Resources.

Building of the proposed Diavik mine is estimated to cost $875 million.