Doug Ashbury & Richard Gleeson
Northern News Services

Yellowknife (Jan 26/00) - A draft environmental agreement on the Diavik diamond mine project is expected to be put to negotiators Friday.

Talks between Diavik Diamond Mines Inc., the territorial and federal governments and aboriginal groups are proceeding well, says Finance Minister Joe Handley, appointed last week to represent the GNWT at the talks.

"It's moving faster than it was, but not as fast as I would like," said Handley.

The agreement will formalize what measures will be taken to monitor and minimize the environmental effects of the project.

The Yellowknife MLA said the draft agreement prepared this week will likely be circulated to all of the parties involved today. Friday morning, aboriginal groups are scheduled to meet to discuss the draft. A meeting of all the parties is scheduled for later that day.

Asked if an agreement could be reached by Friday, Handley said, "It's possible."

In the talks, Diavik has proposed a "community-based" committee that would monitor the mine operation. The company has asked the federal government to pay half the $400,000 cost. Under Diavik's proposal, the board would include representation from Diavik, GNWT, federal government, and five aboriginal groups -- Dogrib Treaty 11, Yellowknives Dene First nation, Lutsel k'e Dene First Nation, North Slave Metis Alliance and the Kitikmeot Inuit Association.

Company president Stephen Prest told Yellowknifer that Diavik is prepared to pay $200,000 a year toward the board's projected annual cost and proposed Tuesday the Department of Indian Affairs and Northern Development pay the rest.

Conclusion of the environmental agreement is critical for the diamond mine project to move forward this year after DIAND refused a request for an interim permit to allow preliminary work to proceed.

To go ahead on schedule, Diavik needs to transport 1,200 to 1,300 loads of fuel, construction equipment and material on the ice road leading to the site. If that doesn't happen, Diavik will have to delay construction of the $1.3 billion mine for a year.

The ice road officially opened for light loads Jan. 23. Tuesday morning, the road was upgraded to 50 per cent of full load capacity of 56,250 kilograms. The ice road is open an average of 65 days.

The company is also looking to finalize its water licence. NWT Water Board Chairman Gordon Wray said Tuesday he expects Diavik's application to be dealt with by mid-to-late February.

Handley said aboriginal groups appear to support the draft agreement, but also "want to see some progress on their impact benefits agreements."

Diavik public affairs manager Tom Hoefer said the company wants to conclude the agreements "expeditiously."