Yellowknife (Oct 01/03) - Despite media reports there is no deal for diamonds between De Beers and the territorial government.

Pressure from Premier Stephen Kakfwi has resulted in the diamond giant restating its "commitment" to supply rough diamonds from its Snap Lake diamonds to "stakeholders, including aboriginal groups."

No one is saying how much that will be.

"The commitment will be honoured," said Kakfwi Monday. The premier met with De Beers officials in Edmonton Friday. "How we do it is still to be worked out."

De Beers isn't saying much about Friday's meeting.

"We have agreed and reaffirmed with the GNWT that the negotiations on the issue of supplying rough diamonds is subject to a confidentiality agreement," said spokesperson Linda Dorrington in a telephone message left with Yellowknifer.

"We have no further comment to make on this subject at all."

Last week's talks came after questions were raised over whether De Beers would provide rough diamonds to cutting and polishing houses in the North.

In December, De Beers Canada president Richard Molyneaux told Mackenzie Valley Environmental Impact Review Board hearings that it would provide some rough diamonds.

The company backed away from that commitment in recent weeks, when Molyneaux told Yellowknifer he had no authority to make any deals with the territorial government on the supply of rough diamonds.

Speaking in New York Sept. 8, Kakfwi accused De Beers of dealing in so-called "dirty diamonds." A day later, he backtracked on those comments and apologized to the diamond company, blaming the outburst on frustrations of dealing with De Beers.

Speaking from Iqaluit last week, Resources Minister Jim Antoine said the government is firm on its policy of requiring diamond mines to provide 10 per cent of their rough diamonds to Northern cutting and polishing houses.

"I just wanted to clarify the GNWT's position within the policy framework. We are 100 per cent in favour of the supply of rough diamonds in the North," Antoine said Thursday.

Earlier in the week, Antoine had hinted he might be prepared to accept a compromise away from the specifics of supplying rough diamonds for cutting and polishing.

"Cutting and polishing isn't the only thing," said Antoine.

"We have a lot of artisans in the North and people working in arts and crafts. If they're trained to be jewellers ... we could expand on jewelry making (instead)."

At least one MLA is talking tough.

Former cabinet minister Jane Groenewegen (Hay River North) said if she had to choose between flushing Snap Lake down the toilet or breaking on the demand for a supply of rough diamonds, that she'd flush the project.

"I don't think we can make an exception for one company that says it doesn't want to buy into our philosophy of maximizing benefit for Northerners," she said.

Groenewegen suggested the secondary diamond industry could expand. She said if Yellowknife is having too much trouble getting polishers to fill the industry then Hay River would love to take a run at it.