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NWT
Diavik Diamond Mines Inc. has awarded a five-year, $15-million contract to a partnership between Tli Cho Air and Lutsel K'e economic development arm Denesoline Corp.

Air Tindi Ltd. will use de Havilland Dash 7 Combi aircrafts, like the one pictured here, to conduct cargo and passenger flights for Diavik Diamond Mine in a new deal struck by Tli Cho Air in partnership with Denesoline Corp. - photo courtesy of Tli Cho Air

The new deal will see the partnership conduct passenger flights to and from the Northern communities in which Diavik workers and contractors reside, as well as cargo and combination flights between Yellowknife and the mine, located about 300 km northeast of the city.

"Diavik's use of our company will leave a legacy of prosperity for the Tlicho people that will extend well beyond the life of the mine," said Alex Nitsiza, chairman of the Tlicho Investment Corp., which owns Tli Cho Air with minority shareholder Air Tindi Ltd.

Air Tindi conducts all flight operations for the Tli Cho Air-Denesoline partnership, currently operating a fleet of three de Havilland Dash 7 Combi aircraft. The contract amounts to about eight to nine flights per week, the company said. The aircrafts can carry up to 46 passengers, 10,000 pounds of freight, or several combinations of the two.

"Collectively our team has a great deal of experience serving the NWT diamond mines across many sectors and this new air transport contract with Diavik is a recognition of the quality service they know they can depend on from our partnership group," Denesoline CEO Roy Shields said.

Diavik spokesman Doug Ashbury said the company is "very pleased with the success" it has had with local companies, and has hit its goal of 70 per cent Northern spending since beginning construction in 2000.

"Over the past decade, including construction and operations, we've worked very hard to ensure that Northern businesses -- many of which are aboriginal -- are participating in the business benefits," he said.

Diavik's total spend since construction is now at $5 billion, $3.8 billion of that Northern spending, with $2 billion of that spent with aboriginal companies and their joint ventures.

Last year, expenditures at the mine came in at about $440 million. Almost $300 million of that was Northern spending, with more than $100 million paid to aboriginal business, Ashbury estimated. Diavik will be releasing the official 2011 spend figures at the end of the month.

The new Tli Cho Air-Denesoline contract includes provisions for multiple extension years following the initial term.

Diavik Diamond Mine is 60 per cent owned by Rio Tinto subsidiary Diavik Diamond Mines Inc. and 40 per cent owned by Harry Winston Diamond Ltd. Partnership.

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