Doug Ashbury
Northern News Services

NNSL (Sep 08/99) - Diamonds from the proposed Diavik mine will be made available to Northern manufacturing firms, the Government of the Northwest Territories has announced.

"We got what we wanted," Resources, Wildlife and Economic Development Minister Stephen Kakfwi said Friday.

"Diavik has agreed in writing and Aber has said they will make a portion available for processing," he said.

The memorandum of understanding was announced on Friday. Diavik spokesperson Tom Hoefer could not be reached for comment.

An amount or rough diamonds has not been determined, Kakfwi said.

Diavik Diamond Mines, a subsidiary of Rio Tinto, is the operator on the Diavik diamond mine project. Rio Tinto owns 60 per cent of the project. Aber, a Canadian junior mining company, owns 40 per cent of the project and retains the right to market its share.

Kakfwi said in a release that the MOU is the first step in ensuring NWT-based diamond manufacturers have access to diamonds from the proposed Diavik diamond mine at Lac de Gras. The MOU also confirms Diavik-Aber Resources intent to establish an sorting facility away from the mine.

The GNWT will prepare an annual report on secondary diamond industry in the NWT.

With a guaranteed supply of rough diamonds, the GNWT is aiming to attract new industry to the NWT.

Currently there is only one cutting and polishing plant, Sirius Diamonds at the Yellowknife airport, and one diamond sorting plant, BHP's operation also at the Yk airport.

BHP, which supplies Sirius, recently said it will supply rough diamonds to Arslanian Diamond Works (NWT) Ltd,, a joint venture set up by the Dogrib and the Arslanian family, and Deton' Cho Diamonds, a joint venture of the Yellowknives Dene and Calgary-based Goldeos Ltd.