Feds approve Gahcho Kue
Potential fourth diamond mine for NWT expected to produce 4.5 million carats per year
Candace Thomson
Northern News Services
Published Wednesday, October 23, 2013
SOMBA K'E/YELLOWKNIFE
The NWT is getting its fourth diamond mine.
The proposed Gahcho Kue diamond mine, operated jointly by De Beers and publicly-traded Mountain Province Diamonds based out of Ontario, was approved Tuesday by Bernard Valcourt, minister of Aboriginal Affairs and Northern Development.
"The minister's approval today is recognition of a very thorough, robust and long environmental review that means the mine can be constructed and operated in a safe manner," said Cathie Bolstad, De Beers' director of external and corporate affairs in Yellowknife.
"We are on our way to having our third diamond mine in Canada and we're very excited."
Bolstad said the next step will be getting a land use permit and water licence from the Mackenzie Valley Land and Water Board. The mining partners can then begin construction, which is expected to take two years.
"We're working on the detailed engineering in association with the construction," Bolstad said. "And we're hoping for a smooth and efficient process."
The mine will be located 280 km northeast of Yellowknife and is expected to produce an average of 4.5 million carats of diamonds per year over its projected 11-year mine life, according to a news release issued on Tuesday.
De Beers estimated Gahcho Kue would contribute $39 billion to Canada's gross domestic product during construction and operation, with 80 per cent going to the NWT. During the construction phase it will employ 690 workers, and operations will require 372, with priority hiring for NWT residents as per a socio-economic agreement between De Beers and the GNWT.
This approval comes despite discontent from First Nations groups who had concerns about the potential social, cultural and environmental impacts of the mine. These groups had called for the project to be sent back for consideration to work out these concerns, after it was approved by the Mackenzie Valley Environmental Impact Review Board in July.
The Lutsel K'e Dene First Nation, Deninu Kue First Nation, Tlicho Government and the Yellowknives Dene First Nation asked
for Valcourt to refer outstanding issues back to the review board for further review.
Tlicho Grand Chief Eddie Erasmus said he was surprised that the mine gained approval, but did not want to comment further before press time. Leaders from the other three groups could not be reached for comment before press time.
One concern is the potential impact of winter roads on the barrenground caribou. One of the three conditions of the project's approval by the review board was that De Beers minimize impacts to the caribou and the area around the mine site, and develop a caribou protection plan prior to construction.
"I think we are close to and understand the concerns of aboriginal communities," said Bolstad. "We've planned the project to address those concerns. We're confident, and it was good to see the minister was also confident."
Mountain Province Diamonds opened yesterday selling at $5.05 per share, then spiked to $5.44 shortly after the news release on the mine's approval came out. The company closed the day back at $5.05, according to the company's website. De Beers is not a publicly traded company.
- with files from
Lindsay Herman
