Diavik taking lessons from diamond rival
Dave Sullivan
Northern News Services
Yellowknife (May 30/01) - The company building Canada's second diamond mine is learning a lot from a rival that built the first one just 30 kilometres away.
Diavik officials acknowledge "our engineers sometimes call theirs" about challenges posed by the tough Canadian Shield.
"There's a lot we learned from them, even in the design" of the mine, says Diavik's Tom Hoefer.
Diavik even raided some engineering expertise from BHP but Hoefer acknowledges that it's a two-way street -- Diavik has lost some skilled tradespeople to BHP.
Diavik benefits in other ways from BHP's experience learning some things the hard way. Many of Diavik's contractors, such as Ekati Services, knew how to price work camp accommodations by first building them for BHP.
Says BHP spokesman Graham Nichols, "undoubtedly they will benefit from our experience."
There's a flipside to savings generated from being the North's second diamond mine. Environmental awareness of the tundra's sensitive ecosystem was raised, and so did Diavik's environmental security bond. BHP paid the government between $50 million and $60 million in case any environmental damage is found when the mine closes. Diavik paid $181 million, believed to be the largest bond ever put up in Canada.
Much of the higher price tag could be due to Diavik's plan to dig an open-pit mine in a large lake. But BHP's Nichols said Diavik benefitted from an overhauled environmental review process made easier to navigate after the growing pains of putting BHP through the process.
Environmental regulations tightened as well over the past two years. BHP built the work camp at it's Ekati mine before permits were in place. But the rules changed, forcing Diavik to erect just temporary work camps to house 800 workers until the rigorous environmental approvals come through.
Next year the company expects to build permanent quarters to house 450 production workers. Hoefer predicts that competition between the two companies will really kick into high gear once Diavik joins the world of diamond marketing.
