Kitikmeot firm in on $262 - million contract
Doug Ashbury
Northern News Services
Kugluktuk (Nov 06/00) - A pending Diavik deal with Lac de Gras Constructors could be the largest private contract issued in the North.
During a recent visit to Kugluktuk, Diavik signed a letter of intent to enter into a contract with Lac de Gras Constructors for $235 million of dyke construction work at the Diavik diamond mine site.
Dyking off part of Lac de Gras will give Diavik access to diamond-rich kimberlite ore bodies.
Lac de Gras Constructors is a joint-venture between builder Peter Kiewit Sons Co. Ltd. (75 per cent) and Nuna Logistics (25 per cent).
Western Nunavut's Kitikmeot Corp. and Nunavut-wide economic development company Nunasi own 51 per cent of Nuna Logistics.
Diavik also said it plans to give Lac de Gras a $27-million cement work contract. Diavik is currently in the first year of a three-year construction schedule.
"We see it as a very important step in the evolution of Nunasi Corporation and in job creation," said Nunasi president Fred Hunt.
The deal will "give us a significant participatory role in the development of the minesite."
The number of construction-related jobs at the Diavik mine is expected to rise to about 1,000 and a Lac de Gras Constructors deal with Diavik will ensure "aboriginal and Inuit employment will be front and centre," he adds.
Hunt, who attended the signing in Kugluktuk, said he came away "impressed" with Diavik's front-line people, and what he called their "commitment to being good corporate citizen."
Diavik spokesperson Tom Hoefer says when it comes to Northern business in general, contracts have evolved to a point where a Northern component is a must.
"Joint ventures with local involvement -- we're seeing that change."
In addition to the letter of intent with Lac de Gras Constructors, Diavik signed one with Tli Cho Logistics, a joint venture between the Dogrib and Atco Frontec, to renew contracts for site services and fuel supply. Diavik also signed a letter of intent with Tli Cho Landtran to supply freight from Edmonton to the Diavik mine site. These two contracts are worth $27 million.
