Yellowknife (June 25/03) - Deton'Cho Corporation is back in the diamond cutting and polishing business.

The company has re-opened the Ndilo plant, in partnership with international diamond giant Schacter and Namdar, as Canada Dene Diamonds.

The company closed the old Deton'Cho Diamonds works last fall, laying off 35 workers.

The plant employs 19 people, all with industry experience in Europe or Africa.

Immigration delays put the plant opening back several weeks, said Deton'Cho CEO Neil McFadden.

The plant will look at hiring locally -- including apprentices from Aurora College diamond program -- as it ramps up production.

The plant, located in the Deton'Cho Corporation building in Ndilo, has been refurbished and new equipment installed.

High worker turnover and a lengthy learning curve for training replacements was one of a number of factors contributing to Deton'Cho Diamonds demise.

Other problems included under-capitalization, inefficient plant equipment, and a lack of international marketing expertise.

McFadden said Schacter and Namdar was chosen as a partner for its combination of manufacturing and marketing experience.

The international diamond giant employs 1,000 people worldwide in Israel, New York, South Africa, China, Thailand, Italy, Belgium, Japan, and Botswana.

Its cutting and polishing works in Botswana employs more than 300 people. Canada Dene Diamonds will buy gem-quality rough diamonds from BHP initially and explore other opportunities as it proceeds, said McFadden.