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To: teevee who wrote (1152)	3/23/1999 12:37:00 AM
From: robert landy	Respond to of 2006

From News/North: Another proposal GNWT cabinet to review diamond plant proposal Doug Ashbury Northern News Services NNSL (Mar 22/99) - This week, the GNWT cabinet will review a third diamond-cutting and polishing plant proposal, Economic Development deputy minister Joe Handley revealed Thursday. "There is one more company that will be going to cabinet (this) week," he said. If the proposal gets approval, the groups behind it will be well-positioned to set up a diamond-cutting and polishing plant in the North. If cabinet approves the proposal, it will be the third nod given to a diamond-cutting and polishing plant in the North. Sirius Diamonds' plant is due to go operational May 1 while Arctic Diamonds' proposal has GNWT conditional approval. Arctic Diamonds is 50 per cent owned by seven well-known Northern businessmen while the other 50 per cent is owned by Belgians and individuals from southern Ontario. Among Arctic Diamonds' Northern owners is former premier Dennis Patterson, who now lives in Iqaluit. Others are Jack Walker, Les Rocher, Alex Arychuk, Gordon Humphries, Mike Stilwell and "ALAN VAUGHAN", all of Yellowknife. The lead Belgian with Arctic Diamonds is Herman Habraken, formerly with Canadian Diamonds International. The biggest condition on Arctic Diamonds gaining full approval from the GNWT is a guarantee of access to rough diamonds. Handley preferred not to divulge the name of the latest company whose proposal will be reviewed by cabinet. But he would say it is a joint-venture between a Northern aboriginal group and a company from abroad. Cabinet will examine the proposal Thursday and presumably make a decision soon after. If a deal is signed between the joint venture and the GNWT, it will likely include conditions similar to those set out for Sirius and Arctic Diamonds. BHP Diamonds currently has a rough diamond-supply deal with Sirius and talks are continuing between BHP and Arctic Diamonds. For its part, the GNWT guarantees bank loans made to the cutting and polishing companies. Diamond- cutting and polishing firms use the loans to buy rough diamonds. Handley says BHP has agreed to make rough diamonds available to Northern-based cutting and polishing firms. "BHP has told us they will set aside about 7,000 carats a month for Northern producers," Handley said. "With current (numbers) we seem to have room for three companies," he said. "Once that allocation is reached, I hope BHP will be open to further discussions." Asked about the potential of the proposed Diavik diamond mine to add to the number of cutting and polishing plants, Handley said: "What we learned from BHP is that DIAND (Department of Indian Affairs and Northern Development) didn't put any requirement for BHP to do any value-added work off the mine site. "We're saying we don't want to go cap in hand to BHP and try to coax them (to give us rough diamonds)." But because there is no rule making BHP give rough diamonds to Northern companies, the GNWT will likely have to do just that if it wants rough diamonds from BHP. Handley adds BHP had responded favourably by building an initial sorting facility away from the mine and by providing rough diamonds. When it comes to Diavik, the GNWT wants the supply of rough diamonds to Northern companies to be a condition of permitting. As for Overseas Diamonds, an Antwerp diamond company is looking to set up a cutting and polishing plant in Hay River. Handley said that firm has submitted a letter of intent to the GNWT and he understands Overseas Diamonds is working on a proposal. American company Ice Diamonds, also looking at setting up a cutting and polishing plant in Hay River, had submitted a proposal to the GNWT. They are revising their proposal based on discussions with the GNWT, specifically related to the amount of value-added work they plan to do in the North, Handley said.