Derek Neary
Northern News Services

Fort Simpson (Oct 11/02) - Three Vancouver businessmen are prepared to build a diamond cutting and polishing plant in Fort Simpson if they can be guaranteed a steady stream of gems from NWT mining operations.

Peter Saito, Wayne Ma and Eric Lau are seeking 8,000 carats of rough diamonds per month to start their operation and they expect demand to grow. They project they would be spending more than $20 million per year to purchase the precious stones. Financing won't be a problem, they said. The 10,000 sq. foot cutting and polishing plant could be built for approximately $2 million.

The facility would employ up to 60 people in its initial stages and local residents would be offered training, they noted.

The trio were in Fort Simpson last Wednesday and Thursday to discuss their proposal with the Liidlii Kue First Nation, the village and the chamber of commerce. They then drove to Yellowknife to meet with Jim Antoine in his capacity of Nahendeh MLA.

On Monday, Bob McLeod, deputy minister of Resources and Economic Development, said the businessmen will have to deal directly with the mines to secure a quota of diamonds.

"We (the territorial government) don't have any diamonds, they're all made available through the mines" McLeod said.

Tourists targeted

Saito, who deals in real estate in the Vancouver area, said there is a huge thirst for diamonds in Japan and other Asian markets. By establishing operations in Fort Simpson, he and his associates plan to attract Japanese tourists to the community. Not only would visitors be given tours of the cutting and polishing plant, they could enjoy the scenery, take wilderness trips and learn about local culture and traditions, said Saito. He added that the Northern lights are another drawing card.

"As long as people come here then all the tourist spinoffs will happen," he said, referring to ensuing growth of hospitality and service industries. "It's a beautiful place for travel."

The Japanese tourists would be able to purchase a diamond for up to 40 per cent cheaper here than in Japan, according to Saito. It would be a savings even with customs and duty charges on top.

"So then the trip pays for itself," he explained.

The diamonds that aren't sold in Fort Simpson would be marketed to People's Jewellers, with which Lau has a business relationship. Peoples Jewellers has more than 200 stores across Canada and its parent company, Zales, has thousands of outlets around the world.

Saito said Fort Simpson is a preferred location to Yellowknife because it's on an island, so it's more secure. "The less road access the better," he said.

It's also a great tourist destination because of its natural beauty. In addition, the Vancouver businessmen are friends with long-time Fort Simpson entrepreneur Leo (Yanny) Cordero, he added.

"Now we have a dream and there's a way to make it happen."