Yellowknife (Oct 04/06) - De Beers Canada's Snap Lake diamond mine is on schedule to be in production by the fall of 2007, despite rising costs.

Higher costs of labour, the early closure of the winter ice road and competition for skilled workers with the south have pushed the capital costs of the Snap Lake project to $975 million, said Cathie Bolstad, manager of public and corporate affairs.

An overhead shot of what will soon be the NWT's third producing diamond mine. De Beers Canada said Snap Lake expenditures as of August total $431 million, of which $246 million was spent on Northern goods and services. - photo courtesy of De Beers Canada

Of the $431 million that has been spent as of Aug. 15, $246 million - or 61 per cent- has gone to Northern firms and joint-ventures.

Of the total spent in the North, 72 per cent - or $176 million - has been spent with Aboriginal suppliers and contractors, she said.

"We are still continuing to exceed our target in terms of buying goods and services from Northern companies," she said.

De Beers' goal is to purchase at least 35 per cent of its goods and services from Northern businesses during construction. Once in production, that would increase to 70 per cent, said Bolstad.

Between January and July, the number of Northern workers dropped slightly to an average of 35 per cent from 41 per cent.

The number of aboriginal employees at Snap Lake stands at 13 per cent this year, down from 17 per cent in 2005, said Bolstad.

While percentages are down for both Northern and Aboriginal hires, Bolstad said the company continues to meet with Northern businesses to discuss work options at the Snap Lake property.

One company that is trying to help fill that drop off in Aboriginal hiring is Aboriginal Engineering Ltd./Dene Soline Alliance.

The venture's goal is to hire and train underground and above-ground survey assistants until they have enough experience to be hired as full-time surveyors by De Beers, said office manager Bob Johnson.

"De Beers is behind us 100 per cent," he said.

As many as 12 Aboriginal workers have been employed at Snap Lake at one time and it has six currently working there as survey assistants.

Thus far, three workers have gained enough technical surveying experience to be hired by De Beers, he said.

Once the mine begins operating, Johnson is hopeful that even more long-term jobs can be created.

"The duration is the key to its success," he said. "We can see the future in it."