Project's investors to make construction decision soon
Doug Ashbury
Northern News Services
Yellowknife (Nov 22/00) - With regulatory approval of a series of water-related reports, plans and drawings, the future of the Diavik project is now in the hands of the project's investors.
London-based Rio Tinto and Toronto-based junior mining company Aber Diamond Corp. will likely give construction of the $1.3 billion Diavik diamond mine the official green light before month's end.
"With these approvals in place, the project investors are expected to make their decision regarding the Diavik diamonds project over the next few weeks," Diavik Diamond Mines, a Rio Tinto subsidiary, said in a release Monday.
The approvals, granted under the Class A water licence which was issued in August, are required for the project's year 2001 construction program.
Diavik spokesperson Tom Hoefer was not available for comment.
The approvals granted by the Mackenzie Valley Land and Water Board include Diavik's dredging and dike construction management plans.
The documents also dealt with Diavik's total suspended solids management plan.
Diavik's four diamond-bearing kimberlite pipes are in shallow waters at Lac de Gras, 300 kilometres northeast of Yellowknife.
To access the ore, Diavik plans to build dikes in the lake and remove water before mining begins.
The board approved about 16 detailed engineering and management plans.
The board reports there are more documents relating to the construction of the mine that still require board approval, but, the board adds, none are critical to the project proceeding.
Information relating to the approvals is on the public registry at the board's Yellowknife Centre offices.
During January, Diavik expects to have completed construction of its two permanent fuel tanks at the site.
Diavik estimates it will haul 4,000 truckloads of fuel and supplies up the 2001 winter road for next years construction program.
Building the mine is to take three years with production to commence in the first half of 2003.
On Monday, Aber stock traded as high as $13.95 before closing unchanged at $13.65. Midday Tuesday, Aber was down 25 cents at $13.40.
