Sydney Selvon
Northern News Services

Yellowknife (Jan 25/06) - Diavik took fewer diamonds out of the ground than it planned last year. According to Diavik Diamond Mines Inc., 2005 production reached 8.27 million carats, 2.7 per cent lower than the target of 8.5 million carats.

Fewer diamonds than expected were mined during 2005 at Diavik Diamond mine, 300 km northeast of Yellowknife. Owners hope for better results in 2006. - Andrea Markey/NNSL photo

"Water conditions diverted us from the richer of two ore bodies," said Tom Hoefer, manager of external and internal affairs. "We worked on the one with less diamonds per ton. The water also slowed down mining."

Hoefer explained that it's normal to encounter such water conditions because the mining activities are occurring below the level of Lac de Gras. The 2006 production estimate will be announced "in the next month or so," he said.

Aber Diamond Corporation, which controls 40 per cent of Diavik's ownership, received "a total of 3.31 million carats of diamonds" and is looking at better results in 2006.

"We are optimistic that improvements to both mining and processing methods may improve the liberation and recovery of enhanced diamond value," said Robert Gannicott, Aber's chair and chief executive officer.

It was also announced last week that Diavik has obtained re-certification in two areas from the International Standardization Organization after stringent auditing. One re-certification was granted with regard to the company's environmental practices. Hoefer said Diavik was first ISO-certified under standards required in 1996.

"This has been updated now to the latest, more stringent standards required internationally."

The other re-certification was also more challenging than the original one. It reflects "the company's commitment to providing customers with assurance of product and process quality."

Companies strive to obtain ISO certification for their products and services as well as their operations because this constitutes a label of quality that counts in the competition for markets. At another level, the public hearings on Diavik's application for renewal of its water license have been postponed by the Mackenzie Valley Land and Water Board. The board's senior regulatory officer, Janpeter Lennie-Misgeld said this is because it has been found necessary to hold a pre-hearing conference to establish procedures and fix other details to better organize the hearings.

"There is no rush. Diavik's current licence expires on Aug. 31, 2007."