Doug Ashbury
Northern News Services

NNSL (Nov 05/99) - With government approval of the Diavik environmental review, the project has cleared a huge hurdle on its way to becoming a mine. And Yellowknife Mayor David Lovell says getting Diavik operational will ignite the city's economy.

"It's a great, great, great, great day," he said of the news that Environment Minister David Anderson had given Diavik federal approval.

"It's the difference between a recession and a boom, right there on that one decision," he said.

Diavik will add 200 direct jobs to the city of Yellowknife. It also means indirect jobs, possibly as many as 150, in the cutting and polishing industry, Lovell said.

It also means a huge boost to the city's construction and transportation sectors, he adds.

"This is nothing but positive."

Anderson gave the Diavik diamond project the green light Wednesday. For project owners Rio Tinto and Aber Resources, the approval clears the way for permitting and then construction. Further delay would have stalled the construction schedule by at least a year and cost owners millions of dollars. So far, about $170 million has been spent to bring the project to ministerial approval.

Contracts for the 2000 construction season will be worth about $100 million.

Diavik has awarded about $20 million worth of construction contracts.

In all, it will take $1.3 billion to bring Diavik to production.

"It looks like lots of good comments and recognition of the work we've done," Tom Hoefer, Diavik Diamond Mines public affairs manager, said. He made the comment just minutes after hearing Anderson's announcement.

"This is a major milestone -- for our investors to hear the Minister of the Environment recognizes this project is environmentally sound," he said.

It has been 580 days since Diavik Diamond Mines triggered the comprehensive study process. Had government opted for a panel review, the process would have taken 396 days, Hoefer said.

The Minister of the Environment concluded with the implementation of all the mitigation measures identified in the comprehensive study report, the proposed Diavik diamonds project is not likely to cause any significant adverse environmental effects.

"Public consultation on the Diavik diamond mine proposal has been extensive, totalling over 300 meetings. Eighteen months were taken to review the proponent's environmental assessment. Throughout, this process has been open and inclusive, valuing public participation," Environment Minister Anderson said Wednesday.

"Steps were taken to fully involve all interested parties and address issues."

Western Arctic MP Ethel Blondin-Andrew said the news is good for all of Canada.

"I think the decision taken is a very good one. Not to say there aren't concerns, but I, being an eternal optimist, feel we can work these things out."

NWT Chamber of Mines general manager Mike Vaydik said approval with commitments was "about what we expected. I've been with the chamber of mines for only three and one-half years and here's the start of a second new mine. It's exciting to see," he said.

For more reaction to the go ahead, please see page A15.