Donna Huffman
Northern News Services

NNSL (Sep 20/99) - Construction companies in the Northwest Territories are hoping diamonds are forever.

The proposed Diavik diamond project, to be located on a 20-square kilometre island in Lac de Gras, 300 kilometres northeast of Yellowknife, is estimating an expenditure of $1.28 billion in development costs and promises to be a strong component of economic development for the NWT.

While still awaiting an official decision from the federal Minister of the Environment, Dave Anderson, Diavik's owners Rio Tinto and Aber Resources, are going ahead with projects and schedules, offering a wide range of tenders available for bidding from Northern businesses.

Earlier this month, Diavik announced it awarded its first tender associated with the proposed mine. Northern Transportation Company Ltd. was granted a $1.9 million contract to build 23 480,000-litre steel fuel storage tanks at the company's Hay River site.

Construction companies stand to benefit greatly from the investment and Diavik is openly encouraging Northern businesses to bid on contracts.

Tom Hoefer, manager of public affairs for Diavik Diamond Mines Inc., said, "We have indicated that we will do whatever we can to help Northern businesses to work with our project."

Bill Aho, president of the NWT Construction Association agrees.

"As far as Diavik, they've been very pro-Northern involvement. They've kept us informed every step of the way, very open with their information, giving us as much lead time as possible. They've been very, very helpful and co-operative," he said.

Two large contracts (which may be combined) up for tender now are the earthworks necessary for both the North and South Island construction.

Construction Survey services will also be required to supply qualified field staff, survey equipment and materials to carry out all surveys required by Diavik on site.

This contract will require the company to use a Total Station device and associated equipment, to control surveys and check other contractors' work and layouts, to assist the senior field engineers on all survey matters, and to compile and maintain all survey records for the Diavik project.

This bid must be in by November 1999, and will be awarded by January 2000.

The Year 2000 Construction program will also require a contractor to supply all the labour, material and equipment to provide soil testing services at the mine.

Diavik will need a significant contract to allow for the installation of the permanent water-intake structure to service the permanent facilities. This job is to be available for the plant site construction facilities in 2001.

This will include the installation of water supply and sewer distribution piping to the plant site area and all other concrete requirements during 2000.

The bid for this contract is due by September and will be awarded by December.

Further to the preparation for the mine will be the contract to supply the permanent camp foundations. Contract bidders should be prepared to supply all field labour, equipment, vehicles, survey equipment and materials to install the foundations for the dormitories for Diavik's permanent camp.

This contract also requires site preparation after the rough grade is supplied by others and drilling and grouting the piling and foundations system and installing the grid support plates. This contract is also due by September and will be awarded in November.

Numerous other contracts, both large and small are available. Interested companies should pick up a copy of the Northern Business Opportunities Profiles from the Diavik office for more information.