Thorunn Howatt
Northern News Services

Yellowknife (Oct 07/02) - De Beers' Snap Lake diamond mining project will be delayed by nearly a year -- again.

The company says diamond production will now begin in 2006 instead of 2005.

"The permitting process is taking longer than we anticipated," said John McConnell, De Beers' vice-president for NWT projects.

It's the second time gem giant De Beers has pushed back its forecast mine dates. In August 2001, the company said plans to begin production in 2004 were overly optimistic and pushed start-up back to 2005.

Last spring, De Beers filed an environmental assessment (EA) to the Mackenzie Valley Environmental Impact Review Board (EIRB) -- part of a process for water licencing and land-use permits.

Then in July, concerns were brought up that the assessment hadn't met the terms of reference in nine different areas. Guaranteed diamond sales to NWT cutting houses was one of the hot issues.

Now De Beers says construction permits won't be processed until 2004.

"Unfortunately we will have missed the winter road season in 2004 so we don't foresee any large construction program until at least 2005."

McConnell said the environmental review process should be more streamlined. He added that socio-economic issues, including provisions for diamond-cutting jobs, shouldn't be part of the environmental review.

The Government of the NWT wants to develop a diamond polishing industry in the territory.

And it wants related agreements built into the company's socio-economic agreements before approval for permitting. McConnell said the two sides are close on the issue.

"The EIRB has finally ruled on our EA assessment -- that it meets the terms of reference," said McConnell.

If all goes as planned, a second round of hearings will take place in March.

"The board could be doing a better job of explaining itself," said Mackenzie Valley EIR Board spokesperson Roland Semjanovs but he stopped at blaming the review board for the mine's delay.

"It's not black and white," he said.

In the meantime, De Beers wants to have the last of the information requests submitted this week. Then public technical hearings should start by early December.

De Beers' Snap Lake project is located 220 kilometres northeast of Yellowknife. Mine construction should employ about 450 people.