Andrew Raven
Northern News Services

Yellowknife (July 06/05) - The Yellowknives Dene say they're prepared to block the winter road to De Beers' Snap Lake mine unless they receive "reasonable" compensation.

The two sides are millions of dollars apart and haven't met since talks on financial compensation broke off three months ago.

Yellowknives Dene Chief Peter Liske says his group will fight De Beers over the Snap Lake diamond project. Gathering of nations: The Assembly of First Nations 26th Annual General Assembly began Monday afternoon in Yellowknife. Between 2,000 and 3,000 delegates are in Yellowknife from across Canada, including National AFN Chief Phil Fontaine. This marks just the second time the general meeting has been held north of the 60th parallel - the last time was in the Yukon during the early 1990s. NDP leader Jack Layton is scheduled to speak at the assembly today. Federal Indian Affairs minister Andy Scott was unable to attend due to illness. Western Arctic MP Ethel Blondin-Andrew will fill in. The main assembly sessions are being held in the gymnasium at St. Patrick high school, a trade show is in the field beside Sir John Franklin high school and cultural activities are going on at the Yellowknife River each evening.

"They are offering us peanuts," Dettah chief Peter Liske said Tuesday after addressing delegates to the annual general assembly of the Assembly of First Nations in Yellowknife.

"They are treating us like we are in South Africa. Well, this is our land."

The $636 million Snap Lake facility is under construction and is scheduled to begin production in 2007.

Third operation

It would be the third operation in the diamond-rich North Slave region and Liske said the Yellowknives want a similar financial package to the one they received from other mining companies.

Liske said De Beers is offering the Yellowknives about $6 million over the estimated 20-year life of the mine.

"That is just nuts. Forget about six million. We want $60 million to $100 million."

Liske said De Beers told the Yellowknives the mine would not be productive enough to meet their demands.

"We know what is under there. The potential is immense," he said.

According to previous De Beers estimates, the mine is expected to produce more than $4 billion worth of diamonds - at current prices - over the next two decades. Annual operating costs are pegged at about $167 million.

Liske also threatened to file a civil lawsuit against De Beers to block production at Snap Lake unless the company resumed meaningful negotiations by August.

"This will be just like the Deh Cho," he said. The Dehcho First Nations launched a pair of lawsuits against the federal government seeking greater input into the proposed Mackenzie Valley natural gas pipeline.

The lawsuits, which were recently settled, contributed to a decision by the companies behind the pipeline to temporarily suspend preparatory work.

Pushed around

"We are tired of being passed over and pushed around," said Liske.

De Beers did not return a call for comment by deadline.

Earlier this month, De Beers reached an financial settlement with the Attawaspiskat First Nation in Northern Ontario. The company wants to build a diamond mine about 90 kilometres west of the James Bay community. The terms of that agreement were not disclosed.

The Yellowknives Dene launched a recent challenge to City Hall, seeking a 64-acre parcel of land near the airport known commonly as the sandpits. The First Nation threatened to halt real estate development in the capital unless the city and territorial government complied with Yellowknives' demands.