SOMBA K'E/YELLOWKNIFE
A project proposed by Dominion Diamond Corp. that would see Ekati's mine life extended by 11 years has received the green light from the Mackenzie Valley Environmental Impact Review Board.

Dominion Diamond Corp. recently received approval from the Mackenzie Valley Environmental Impact Review Board to develop a large kimberlite pipe 30 kilometres from the Ekati diamond mine. The Jay pipe has the potential to extend mine life by 11 years. - NNSL file photo

The Jay project could unlock more long-term opportunities at the site and is "critical" to the North, CEO Brendan Bell said during a public engagement session in Yellowknife last fall. The report has since been sent to the Minister of Lands Robert C. McLeod for approval.

Responding to the review board's decision this week, Bell said, "Dominion thanks the (board) for their work on the project and looks forward to a timely decision by the minister. We would also like to thank all the communities for their active interest and participation throughout the environmental assessment process."

During public hearings in September, the Yellowknives Dene First Nation and Independent Environmental Monitoring Agency expressed concerns about how development of the pipe may affect the Bathurst caribou herd as its numbers have declined from 460,000 in 1986 to an estimated 15,000 last fall. There was also concern around the impact of water quality.

In its approval, the review board outlined a number of required measures to reduce the impact on the environment and wildlife including managing road dust and surface waters. Dominion is also required to fund an elders group to advise on construction, operation and monitoring of the project, a dike review panel and a strategy to employ women.

Ndilo Chief Ernest Betsina said the Yellowknives Dene are considering the board's response.

"We intend to take our time to review the board's recommendations and ensure the recommendations do not infringe on our constitutional rights as First Nations people," he said. "YKDFN has not and has never been anti-development. That said, we have learned some very hard lessons in the past and we must assure that any recommendation made by the board are in the best interest of the land and the people before we support it."

Last month, Dominion announced pre-feasibility study results for the project, which determined a mineral reserve of 84.6 million carats valued at $610 million U.S.

The Jay pipe is located in the buffer zone - 30 kilometres from the Ekati mine infrastructure beneath Lac du Sauvage, - which hosts a number of kimberlite pipes with development and exploration potential. the Jay pipe is the most promising deposit in the area.

"Completing this pre-feasibility study is an important milestone for Jay, a project we hope will be a significant growth opportunity for the company and a long-term pillar of the Northwest Territories economy," Bell stated in a Jan. 28 news release.

Construction is anticipated to begin in the second half of 2016 with de-watering of the area and pre-stripping scheduled in 2019. Mining and kimberlite processing will then begin in 2020 and is expected to supply approximately half the ore to the processing plant as existing sources are exhausted.

The project - including infrastructure, roads and pumping - is expected to cost approximately $368 million with an additional $44 million in engineering, construction and quality assurance. Equipment costs including the purchase of haul trucks, hydraulic shovels, front-end loaders and a dozer amount to $96 million with an additional $63 million in pre-stripping, quarrying, power and construction support during the first phase of mining.

The project is expected to contribute $6 billion in GDP and $200 million in corporate taxes to the territory.