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Northern News Services
 Jason Lepine, left, of the Northwest Territory Metis Nation, and Dan Grabke, of the NWT Energy Corp., display a map of the proposed power line from the Taltson River to the diamond mines north of Great Slave Lake. - Paul Bickford/NNSL photo 
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It's part of an ambitious $250 million plan to expand the Twin Gorges dam and build power lines to tundra diamond mines. It's one of a series of hydro electric projects being touted by Handley as ways to bring cheap power to communities and generate revenue for First Nations and the government.
Lutsel K'e chief Archie Catholique calls all this talk "premature" because the power line has to cross their traditional lands.
"We haven't given the green light for them to go ahead," says Catholique. His band has a deal with Regional Power Inc. to look at rivers in Lutsel K'e territory that could be suitable for hydro development.
He also says the issue of trappers flooded out when Taltson was built in 1965 hasn't been resolved.
"Someone is responsible," says Catholique. "It has to be dealt with."
Trapper Stanley Beck of Fort Resolution agrees. He's 53 years old now, but started trapping in the area when he was a child in the 1950s. "Everything has changed" since the dam was built, he says.
"We've had a tough time with flooding. I'd like to see some compensation to the people who were impacted by this."
It's not clear who's willing to take responsibility for the 75-100 trappers from Fort Resolution, Lutsel K'e and Fort Smith whose livelihoods were damaged by flooding from the dam.
"These issues have to be dealt with," says Richard Nerysoo, chair of the NWT Power Corporation. NTPC took over the dam from the federal Northern Canada Power Commission in 1988. "The overall issue of the initial project is the responsibility of the federal government."
Handley calls himself a big supporter of hydro power and wants to take advantage of the Taltson opportunity.
"Ideally you would have (Lutsel K'e Dene band's) approval," says Handley. "But you can still put in an application (with regulatory agencies). It's still classified as Crown land."
Aboriginal groups partners
The Taltson project is being promoted by a partnership between NWT Energy Corp., the Akaitcho Territory Government and the Metis Energy Corporation Ltd. The Energy Corp. is a subsidiary of NTPC. Already, $2 million has been spent on environmental and engineering studies.
"This is a good investment opportunity," says Nerysoo.
According to Dan Grabke, director of business development for the Energy Corp., the diamond mines are ideal customers. "The mines would be willing to pay three times" the five cents a kilowatt customers on the southern grid would pay.
Handley told the legislative assembly last week there is an opportunity to sell the power south, but the first choice is the mines.
"We have had letters of interest from all of the operating mines in the Slave geological province telling us that they are interested in the potential of hydro power if we can make it available," says Handley.
Most of the attention has been on bringing power to De Beers' Snap Lake mine, 435 km from Taltson.
"We've certainly expressed an interest," said John McConnell, vice-president for NWT projects with De Beers. "We haven't made any concrete commitment at all."
BHP Billiton Diamonds is also interested in hydro power for Ekati mine "as long as the price is right," says Ian Goodwin, the company's manager for environment, community and external affairs.
Plenty of work to do
Bringing the project to reality means a lot of work ahead, says Chief Jerry Paulette, the Akaitcho representative on the partnership.
"I think the project is doable," says Paulette. "I think there are a lot of issues and challenges along the way."
The partners hope to begin construction by 2006, with power to mines by 2008. All three existing mines have to sign on to make the project feasible.
"You couldn't justify the line for just that one customer (De Beers)," said Grabke.
Adds Rob Tordiff, president of the Northwest Territory Metis Nation: "If the pros outweigh the cons, you have to find a way to address the cons."
One of the key issues remains: paying for the project. NTPC and the Energy Corp., combined, have $118 million in long-term debt guaranteed by the territorial government.
"It's not a matter of looking on government and saying 'you're responsible,'" says Nerysoo. He says there are other ways to raise capital for the project without being a financial burden on the GNWT. That includes borrowing against any contract for power sales or issuing bonds.
He rejects any suggestion building a power line to the mines is risky. Instead, he notes opportunities exist for new mines plus the transmission line may one day be part of a grid around Great Slave Lake.
"When you think about it that way, it has huge potential and possibilities," he says.
