YELLOWKNIFE - Imperial Oil is facing a 9.8 million litre fuel shortage for the North, primarily due to the Canadian National Rail strike, and that could be bad news for the NWT's diamond mines.

With the mines relying on the winter roads to truck out the year's supply of oil, the CN rail strike is already resulting in a shortage of fuel supply for mining companies. - Christine Grimard/NNSL photo

"Because of a lower number of rail cars going into Hay River, we don't have as much supply as we're supposed to have," Pius Rolheiser, spokesman for Imperial Oil said Tuesday.

Rolheiser noted that if the strike continues, Imperial might have to ration how much fuel is sold to the mines. Imperial Oil is one of the major suppliers of low-sulfur diesel to the mines.

BHP Billiton Diamonds is watching the situation closely. The company's Ekati mine receives its annual supply by truck across the winter ice road, which is only open for a few months each year.

"We are very concerned about the situation," said Deana Twissell, spokesperson for the Ekati mine. "Fuel supply is absolutely essential for our operation."

Twissell would not speculate on how the strike might affect BHP's operations.

Twissell noted that BHP has expressed its concerns to the Labour Minister Jean-Pierre Blackburn regarding the company's dependence on the winter road to supply the mines.

Diavik Diamond Mine, however, might be in a better situation. Hoefer reported that thanks to 50 million litres of fuel transported up to Hay River by the end of last year, the company isn't facing any immediate shortages.

Diavik requires 86 million litres of fuel to operate for one year. It was planning on purchasing 30 million more litres from Imperial Oil.

Hoefer noted that if the fuel isn't at the mine site by the end of the winter road season, then the company will look at how a shortage could affect operations.

"It's just a matter of time," said Hoefer.

Trains continue to operate between Hay River and Edmonton, as employees of the former Mackenzie Northern Railway are not affected by the strike, said Jim Feeny, a spokesperson for CN.

Feeny noted that trains with fuel are still moving to Hay River, and there are loaded fuel cars in Hay River.

He would not comment on how limited that supply might be due to interruptions of operations into Edmonton.

The rail strike began over salaries for conductors and yard-service workers. Talks broke off Feb. 9 between the United Transportation Union and CN.

The federal government is reportedly considering back-to-work legislation.