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Diavik deal

North Slave metis Holdings signs construction contract

Doug Ashbury
Northern News Services

Yellowknife (Dec 04/00) - A North Slave Metis Alliance company signed its first contract with Diavik Diamond Mines Inc..

"This means jobs and business opportunities for members. Also, hopefully it will up our credibility as business people," said North Slave Metis Alliance President Clem Paul.


Clem Paul


The $104-million, two-year deal, which includes installation and testing of all pipelines at the Diavik diamond mine, is a joint venture between North Slave Metis Holdings, Rowe's Construction Ltd. of Hay River and Kamloops-based Tercon Contractors Ltd.

The contract, which hinges on shareholder approval of construction of the mine -- located about 300 kilometres north of Yellowknife at Lac de Gras -- will be with Metcon Contractors.

Regulatory authorities recently granted Diavik approvals that will allow the company to begin formal construction.

At least 40 per cent of the $10.4 million contract value will be Northern content, according to Diavik.

Direct hiring is to be at least 56 per cent, and sub-contractor man-hours are to be at least 60 per cent.

Paul said the deal will generate 20 jobs for Metis (10 in March and 10 more in June). He added the alliance hopes this is the first of several contracts it secures at the mine.

"We've bid on five different construction-phase jobs," he said.

Paul also said the alliance and Diavik have had their differences but the differences are now in the past.

"That battle is over. Now we're looking at the construction of a mine.

"We've both weathered that storm and I think that's a sign of growth," he said.

"Rest assured, the Metis are looking at the long-term benefits of the mine."

The alliance had sought a judicial review of the Ministry of Environment approval of the project but dropped the action in March when it signed an impact benefits agreement with the company.

The alliance said the terms of the IBA, which have not been disclosed, addressed the concerns raised in the court action.