Doug Ashbury
Northern News Services

NNSL (July 09/99) - The NWT's Resources, Wildlife and Economic Development minister says he made "significant progress" with mining giant Rio Tinto.

Stephen Kakfwi, along with RWED deputy minister Joe Handley, met with Rio Tinto chairman Robert Wilson Monday in London. Rio Tinto owns 60 per cent of the Diavik project.

The GNWT is attempting to get a commitment from Rio Tinto on supply of rough diamonds to Northern manufacturers and wants the commitment included in a socio-economic agreement.

"They (Rio Tinto) have no problem in principle saying they will make rough diamonds available," Kakfwi said Wednesday.

Last month, the GNWT broke off socio-economic talks with Diavik Diamond Mines Inc.

The talks stalled because the government was unable to get local Diavik officials to commit to supplying rough diamonds to local manufacturers.

With a guaranteed supply of rough diamonds, the GNWT is better positioned to attract manufacturers to set up operations in the North.

Kakfwi's meeting with Rio Tinto comes after a similar meeting with Aber.At that meeting, Kakfwi also came away with a positive message.

"Two weeks ago, Aber said they are prepared to put in writing, depending on the production profile, that they will make a commitment to cut and polish in the North," Kakfwi said.

"Hopefully, I'll get a letter in the next few weeks from Rio Tinto saying they will make a portion of rough available for cutting and polishing in the North."

With such documentation, Kakfwi said the GNWT and Diavik should be able to get back to socio-economic agreement talks.