Thorunn Howatt
Northern News Services

Yellowknife (Feb 06/02) - Now that Diavik's diamond project is accessible by ice road, a lot of people are going to be put to work.

Diavik's total on-site workforce dropped to about 125 in the last three months of 2001 from a peak number of 1,000 workers. But with the arrival of supplies over the 2002 winter road, on-site workforce numbers are climbing.

"There are 460 today," said Diavik spokesperson Tom Hoefer, referring to the number of workers at the construction site this week.

About 40 per cent of Diavik's workers are Northerners, both aboriginal and non-aboriginal. The number is a combination between Diavik's own employees and contractors working on the project.

"I think we have really achieved very admirable results in the percentage of both Northern and aboriginal companies involved in the project. I don't think the North has ever seen participation to that level ever before," said Hoefer.

In addition to hiring Northerners, Diavik promises to make 70 per cent of its annual mine purchases in the North. That adds up to $70 million.

About $690 million in construction contracts and purchases were awarded to Northerners in the last three months of 2001, out of a total of about $970 million.

Work at the territory's second diamond mine has been going smoothly -- on budget and on schedule. Last year $790 million was spent and the project is on schedule to commence diamond production in the first half of 2003 and start-up forecast for April 2003.

The diamond project is located on a 20-square-kilometre island in Lac de Gras about 300 kilometres northeast of Yellowknife. Once the diamond mine is finished construction, it is expected to produce 101.5 million carats of diamonds at an average of $63 US per carat, using a 2000 evaluation, over its mine life.