Terry Kruger
Northern News Services

Rae-Edzo (Jan 24/00) - Plans to begin hiring 40 to 50 people as part of a $12.6 million contract between Diavik Diamond Mines and Tli Cho Logistics have been put on hold.

Tli Cho, a company jointly owned between the Dogrib Rae Band and Atco Frontec Services, planned to begin the hiring process Friday, said company president George Mackenzie.

The one-year contract was to provide labour, services and equipment for construction of the mine at Lac de Gras. But the project was thrown into limbo when Diavik was denied an interim permit to begin preliminary work at the site.

Diavik wants to lay down about 40,000 cubic metres of rock and gravel fill in preparation for expanding its temporary camp and fuel storage facilities. Time is critical because fuel, materials and equipment need to be brought by winter road.

The delay was not really a surprise, said Mackenzie, who noted the company has always known the mine project could be subject to delays.

"The Diavik project is something we've never had in the first place, but we had an opportunity," said Mackenzie. "It's not something that's been taken away."

He hopes Diavik will work to get over the hurdles it currently faces.

"We're hoping they will be there in good faith, that they will follow all the right steps, and follow due process," added Mackenzie.

Nault creates uproar

Indian Affairs and Northern Development Minister Robert Nault, who visited the North for two days last week, said Diavik must get its act in order before it can begin work on the site.

He said the company must sign an environmental agreement and needs to address the issue of benefits agreements 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," he said.

Reaction to denial of the permit was swift and furious in Yellowknife where politicians and business people complained that the decision will hurt the Northern economy.

"I'm absolutely appalled," said Yellowknife mayor Dave Lovell.

An ad-hoc group of business and industry representatives scraped together a media campaign encouraging people to complain to DIAND.

Diavik responded by closing down operations at the site of the proposed mine.

Up to 120 workers were ordered home, leaving a crew of nine to take care of the equipment and materials that are now on site.

President Stephen Prest said the DIAND decision could delay the project for a year. He called on Nault to get personally involved in reaching an environmental agreement.

"I am optimistic that under your concerted direction, these matters can and will be resolved in a very brief period," wrote Prest in a letter to Nault.

Negotiating sessions in connection with the environmental agreement are scheduled for this week.