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SOMBA K'E/YELLOWKNIFE - Diavik's environmental watchdog has declined a request from the company for it to cease operation during the diamond mine's two upcoming production shutdowns.

John McCullum, executive director of Diavik's environmental monitoring advisory board, said the board met May 4 and decided it needed to keep operating during the shutdown.

The board "went through a list of considerations and just basically came to the conclusion that they felt they had to continue operations," he said.

Diavik had sent a letter to the board in early April, asking the monitoring board - responsible for reviewing Diavik's environmental reporting and management plans, while incorporating traditional knowledge into the implementation of the plans and keeping communities abreast of the happenings at the diamond mine - to shut down while the mine suspends production from July 14 to Aug. 24 and Dec. 1, 2009 to Jan. 11, 2010 as a cost-saving measure.

Doug Ashbury, communications adviser with Diavik Diamond Mines, said the company was looking for savings in every area possible.

"Regardless of the outcome of the discussions, Diavik will continue to protect the environment as we have always done," said Ashbury.

On May 6, McCullum said the board had yet to inform Diavik of the decision, as it was in the process of drafting up a letter to send the company.

The advisory board was created in March 2000 after a recommendation from Diavik's environmental assessment called for the creation of an independent environmental monitoring board.

The board is made up of five members from different aboriginal organizations, one member from the government of Canada, one from the territorial government and one from Diavik.

Diavik provides the monitoring board's funding, which is typically $600,000 a year, but that amount was reduced this year.

McCullum said the board disagrees with the cut to funding and has recommended the dispute be brought to mediation.