Found a couple of newspaper articles concerning Winspear. The first and third articles are similar, with the third having a paragraph were the Premiers' comments catch Winspears' MacDonald flatfooted. They want a share of Winspear or revenue sharing.
All that glitters isn't gold in N.W.T.
New diamond mine no benefit without revenue-sharing: Premier
Markets
By TIMOTHY LE RICHE
Edmonton Sun
A third Canadian diamond mine offers little benefit to the Northwest Territories without a revenue-sharing agreement with the federal government, Premier Stephen Kakfwi warned yesterday.
"If we had three or four diamond mines opening up at the same time it would be difficult to reap economic benefit," said Kakfwi after a breakfast speech to the Edmonton Chamber of Commerce.
"We will not have the manpower and people to put on those jobs," said the premier of the 40,000-population N.W.T. "So we'd have to import literally hundreds of people.
"We'd be creating jobs for you," said Kakfwi, referring to Alberta and Edmonton. "It's not a bad thing, but there's nothing in it for me, for the people of the North, to have people fly in and fly out. It's something we've always frowned on."
The US$900-million Ekati diamond mine, Canada's first, opened near Lac de Gras north of Yellowknife in 1998. The US$1.3-billion Diavik mine is under construction nearby.
Winspear Resources Ltd. is the majority owner in the US$270-million Camsell Lake joint venture, a diamond play in the same region. A feasibility study is under way into that mine, which could be up and running before Diavik.
Hundreds of northern miners and oilfield workers operating in the Northwest Territories are based in Alberta.
Looking for those elusive benefits, the territorial government is working to complete revenue-sharing agreements with the federal government, or might consider an equity stake in Winspear, said Kakfwi.
Today, 95% of resource revenues flow to the federal government, he said. The N.W.T. wants an equal share.
Kakfwi said 30 cents of every dollar of economic activity generated in the N.W.T. flows south of its border, mostly to Alberta. In capital construction, 80 cents on the dollar migrates to Alberta, he said.
Between 1991 and 1996, the N.W.T. imported US$1 billion worth of goods and services, with 28% coming from the Wild Rose province.
"Total trade with Alberta during that same period averaged US$385 million per year," said Kakfwi.
With the massive diamond play and upcoming gigantic natural gas developments, the N.W.T. is on the verge of self-sufficiency, he said.
Negotiations continue towards "devolution," that is, obtaining more rights from Ottawa so the N.W.T. can run its own affairs, said Kakfwi.
Diamond outfit ready for regulator
Winspear hopes to win approval for mine next year
Bryant Avery, Journal Business Writer
The Edmonton Journal
Diamond-mine developer Winspear Resources will begin walking the federal regulatory gauntlet in three or four weeks, says executive vice-president John McDonald.
Winspear will file an environmental application, proposing to build an underground mine 225 km northeast of Yellowknife, Northwest Territories. Early estimates suggest it will cost $260 million, McDonald said.
The mine will differ dramatically from the nearby Ekati and Diavik diamond mines, both of which are deep pit mines.
Kimberlites -- geological formations that may contain gems -- are usually carrot-shaped. "Our kimberlite is effectively like a sheet of plywood," McDonald said.
Winspear will tunnel into the seam, meaning it will disturb only about one-tenth the surface area of the other two projects.
Despite the mine's name -- Snap Lake -- the Winspear mine will not disturb lakes. At Diavik, engineers must construct huge dikes to hold back a corner of Lac de Gras. Ekati's pit eliminated a small lake and is near others.
McDonald said the company hopes to have regulatory approval by mid-2001, allowing the company to haul material on the annual winter ice road the next winter. The mine could begin operating with a crew of 300 in late 2002 or early 2003.
Winspear's mine will also process about a quarter the ore of Ekati, McDonald said. It will grind up 3,000 tonnes a day. Based on current estimates, the mine would last for a dozen years, although Winspear is exploring other potential kimberlites.
Fifty-five per cent of waste rock from the tunnels will be deposited back in the caverns.
McDonald said an ownership dispute with partner Aber Resources -- also minority owner in the Diavik mine -- continues to percolate. Winspear claimed in March that Aber failed to agree in writing to pay its portion of a 1999 exploration budget, so Aber's stake would be reduced proportionately. Aber said it paid its share. A court decided in Aber's favour, but Winspear has appealed the ruling.
Land of diamonds -- and jobs
There are major oil and gas reserves, too, N.W.T. premier tells chamber
Bryant Avery, Journal Business Writer
The Edmonton Journal
Brian Gavriloff, The Journal / Northwest Territories Premier Stephen Kakfwi at the Chamber of Commerce meeting Friday. He sees the need for an influx of workers and is looking for ways the people of the North can benefit.
There aren't enough workers in the Northwest Territories to handle all the North's potential diamond and natural gas projects, N.W.T. Premier Stephen Kakfwi said Friday in Edmonton.
He told an Edmonton business audience if all the proposed projects proceed, "we will not have the manpower to put on those jobs, so we would have to import literally hundreds of people from the South. We'd be creating jobs for you."
That's not a bad thing, Kakfwi said in an interview. "It's just there's nothing in it for me -- there's nothing in it for the people of the North."
To ensure that the North -- home to only 40,000 people -- gets its share of benefits, the N.W.T. government may demand an aboriginal ownership stake in certain projects, he told members of the Edmonton Chamber of Commerce.
Rich Reserves
There are rich untapped oil and gas reserves all along the Mackenzie Valley from Tuktoyaktuk to Fort Liard. Producers and pipeline companies are weighing the feasibility of a major natural gas pipeline.
Northeast of Yellowknife, there is one operating diamond mine (Ekati), one under construction (Diavik) and two others in the wings (Winspear and Monopros/De Beers).
Kakfwi cited Winspear Resources as one developer that might need to form an equity partnership with a northern aboriginal company. Winspear is about a month away from filing environmental assessment papers to develop a $260-million diamond mine 225 km northeast of Yellowknife.
Jurisdiction An Issue
Kakfwi is also negotiating with the federal government to get jurisdiction over northern land, resources and royalties. The first meeting of a new intergovernmental forum was held May 5.
But those negotiations may take time. "Without getting a share of (Winspear), or without getting an agreement on revenue sharing, it is going to be difficult to reap economic benefits from Winspear," Kakfwi said.
"We're not saying, 'Just go ahead, take our diamonds and northern gas -- take it out and have a good time at our expense,' " Kakfwi said.
"Other options such as taking an equity in the company by aboriginal groups may be the only other suggestion."
The premier's comments caught Winspear executive vice-president John McDonald flat-footed. "I'd have to pass on that," he responded to a question about the premier's comments.
Winspear is aware of the need to include northern groups in any development, he said. The same was expected of both Ekati, owned by BHP and Dia Met, and Diavik, owned by RTZ and Aber Resources.
Both companies have made commitments to aboriginal training and jobs.
"But we're trying to stay on the top of a rolling ball," McDonald said.
To the chamber members, Kakfwi issued an invitation.
"It is obvious that there are tremendous opportunities for your businesses from the development of northern mineral and oil and gas resources," Kakfwi said. "You have the equipment and the manpower and you have the service industry."
'Absolutely Bang-On'
Sandy Slator, president and CEO of PTI Group Inc. which has built and run work camps in the North since 1978, said northern opportunities are exciting. "From a development perspective, you haven't seen anything yet."
He approved of Kakfwi's demand for northern gains. "What the leaders of the N.W.T. are doing right now is absolutely bang-on," Slator said. PTI has a partnership with the Yellowknife Dene in Ekati Services Ltd.
Kakfwi also noted that any pipeline along the Mackenzie River valley is likely to be managed by and at least partially owned by natives. "TransCanada (PipeLines) is up there every day," he said, and Westcoast and several U.S. consortiums are also studying options. Enbridge has an oil pipeline from Norman Wells to Zama, Alta., plus a gas pipeline system around Inuvik.
N.W.T. TRADE
Northwest Territories Premier Stephen Kakfwi reminded the Edmonton Chamber of Commerce how large the trade is between Alberta and the N.W.T.
- Between 1991 and 1996, 28 per cent of the N.W.T.'s imports ($1 billion annually) came from Alberta and total trade averaged $385 million per year.
- The operating crew at Ekati diamond mine totals 600 and Diavik will have 400 on site when it is completed. Many live in Edmonton.
- Nearly 70 per cent of the construction costs for the $1.3-billion Diavik project will be spent in Alberta.
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