The plant was formerly operated by Deton'Cho Diamonds, which closed the works and laid off employees last fall.

It will now be operated by Canada Dene Diamonds (CDD), owned by Deton'Cho Corporation in partnership with Schachter & Namdar Polishing Works.

The partnership was announced by Deton'Cho Corporation president and CEO Neil McFadden last week.

Financial details of the deal were not disclosed but Deton'Cho retains majority ownership, said McFadden.

Schachter & Namdar is a major player in the diamond manufacturing industry worldwide.

The firm has offices and factories in Israel, New York, South Africa, China, Thailand, Italy, Belgium, Japan and Botswana.

The company employs 1,000 people worldwide, including 500 at its Botswana polishing works alone.

The firm was one of "a number" scrutinized by Deton'Cho as possible partners.

"We entertained offers from a number of different players in the marketplace," said McFadden.

Schachter & Namdar was selected for its "stellar" reputation, its international sales and marketing infrastructure, and for its diamond manufacturing expertise, he said.

Problems leading to the closure of the Deton'Cho works included sub-standard plant equipment, poor staff training and a lack of marketing expertise globally, said McFadden.

"We had good intentions but at the bottom line we did not have the resources needed to carry the plant forward in a global market. Now we have those resources."

New equipment coming

The capital investment required to upgrade the Ndilo plant to world standards will be significant, he said. Orders for new plant equipment will be placed shortly.

Schachter & Namdar's manufacturing expertise will be a key to making the Ndilo works successful over the long term, said McFadden.

The challenge for the facility is "to maximize the price of the finished product because the cost of production is higher than it is in most parts of the world."

McFadden hopes to see the plant up and running in March.

"It may be optimistic but I'd like to see wheels turning in the plant by then. We have 40 empty benches in the plant and I hope to see them filled as soon as possible."

The management team for the plant will probably be drawn from Schachter & Namdar's Botswana works, he said.

Cutters and polishers will be hired and trained locally.

At startup, the CDD plant will process rough diamonds from BHP Billiton's Ekati mine. "We have a contract for access to rough diamonds to be manufactured in the Northwest territories.

"Hopefully, we will also be processing diamonds from Diavik and De Beers at some point in the future, or from any other source that we can gain access to as we move forward."