Thorunn Howatt
Northern News Services

Yellowknife (Mar 04/02) - A diamond is forever, and the process that permits the North's third diamond mine might be forever too.

After delaying the Snap Lake diamond project for a year, gem giant De Beers went the next step and filed an environmental assessment to the Mackenzie Valley Environmental Review Board last week - part of a process for water licensing and land-use permits.

"We didn't understand the full process," said De Beers' John McConnell.

A year ago De Beers Canada Mining Inc. applied to the Mackenzie Land and Water Board for a permit for its Snap Lake diamond project. In May 2001 the board reviewed it and decided there was enough environmental impact that it should be referred to the Mackenzie Valley Impact Review Board. That board develops a "terms of reference" outlining the areas it wants to see addressed in an environmental assessment.

De Beers received the instructions in September. "We address all the concerns that are raised in the terms of reference," said McConnell.

Those notes are what De Beers delivered to the review board in massive binders.

The next step in the process will be a series questions and answers between the company and the review board.

The board hopes to be through the review process by September 2002 and send a recommendation to the DIAND minister. "Hopefully the minister reviews it quickly and has his recommendation in to the land and water board," said McConnell.

The licensing process might take until December, he said. De Beers hopes to have permits in hand by 2003.

"Since we submitted the application it will be a full two years. I'm not sure that's very quick," said McConnell.

If De Beers gets its permits by early 2003 it might be too late to start hauling mine equipment to Snap Lake via the winter road.

"The cost of putting the mine into production is probably about $450 million, so before we go to our board and ask for the funding they are going to want some certainty on the time lines," he said.

Some work could start on the underground mine because it has an airstrip. "And then we would take full advantage of the winter road 2004 and move the main construction equipment and materials to the site," he said. This mean diamonds would come out of the mine in 2005. The mine will employ about 500 people during construction. It is located 220 kilometres northeast of Yellowknife.