Terry Kruger
Northern News Services

Yellowknife (Jan 21/00) - Diavik has a lot of work still to do before it can consider beginning work at its Lac de Gras diamond mine site, says Indian Affairs and Northern Development Minister Robert Nault.

On Thursday, Diavik Diamond Mines Inc. was denied an interim permit to begin preliminary work at its proposed diamond mine. In response, Diavik will now suspend operations at the site.

Nault told reporters Thursday that Diavik will not be allowed to proceed any further until an environmental agreement is in place and other issues are resolved.

"I have a strong difference of opinion (with Diavik) that they will not be able to start until they have an environmental agreement," he said.

Nault said he is aware the delays will cause some "growing pains" but that it is important things are done correctly from the start.

"I've seen enough Giant mines in the North not to want any more, but I'm very adamant that we're not going to make the same mistakes twice," said Nault.

"Those mistakes are very difficult to turn around once they're made."

The minister doesn't see the stand as changing the rules midway through the Diavik process.

"Interim permits, to me, don't exist in the system without an environmental agreement. And once we have that then we'll talk about the water licence."

He added there are other issues that still have to be addressed, such as a benefits agreement with First Nations groups.

"So there has been a lot of work that hasn't been done by Diavik itself and I recommend that they get at it and I will be very co-operative if they do."

Premier Stephen Kakfwi welcomed the minister's stand, saying it's important to resolve the issues before development takes place.

"Clearly, there should be an environmental agreement in place, I agree with that. There should be benefit agreements in place with aboriginal groups in place before the project proceeds," said Kakfwi.