Doug Ashbury
Northern News Services

Yellowknife (Jun 26/00) - Cloudy waters is the latest cloud cast over the Diavik diamond project.

The mine is "unconstructable" if the level of suspended solids, cited in the draft water licence, is adopted in the final water licence, Diavik Diamond Mines President Stephen Prest told News/North Wednesday.

The suspended solid levels are tied to dredging some of Lac de Gras' lake bed for dike building. The dikes are necessary so portions of the lake can be drained to get at the diamond-bearing kimberlite ore. The dredging is to occur over four months next year.

"The limits proposed are lower than what we think can be achieved. (The mine) is not constructible under those conditions," Prest said Wednesday.

"You can't do it."

The draft water licence's five milligrams per litre suspended solid level (this figure is a 30-day average at different depths) is much lower than the 165 milligrams per litre suggested in the comprehensive study review, Prest said.

The draft licence also requires total suspended solids shall not exceed 25 milligrams per litre (one milligram per litre equals one part per million).

The levels in the water board's draft water licence are considerably lower than those recommended by the Ministry of the Environment or the Department of Fisheries and Oceans, Prest adds.

Diavik has made a submission to the water board about its draft water licence concerns and requested the concerns be put on the public registry. It is not known if these comments will be made public because they may reveal details of the draft water licence which is not a public document.

"We're hopeful the final licence will reflect numbers that allow the project to go forward. The draft licence is exactly that, a draft," Prest said.

The NWT Water Board answers to Department of Indian Affairs and Northern Development Minister Robert Nault and operates under federal legislation (the NWT Waters Act).

Earlier this week, the deadline passed for intervenors to make comments on the draft water licence.

Last week, Diavik released a copy of a speech made by Prest in which he flagged the draft water licence. On June 19, News/North reported Prest's comments that the draft water licence, if adopted in its current form, would kill the mine. Prest could not be reached for more details by deadline.