De Beers gets nod for first Canadian diamond mine

Gary Park

Petroleum News Calgary correspondent

South African mining giant De Beers is on the road to its first diamond project outside its home base, having received a green light to embark on the regulatory phase of the Snap Lake project in the Northwest Territories.

Based on the recommendations of an environmental review, De Beers Canada President and Chief Executive Officer Richard Molyneaux said July 28 his company hopes to start site activities this winter and open the mine in 2006.

Snap Lake, 130 miles northeast of Yellowknife, is estimated to hold 41.1 million carats of diamonds and is expected to employ 350 people during an operating life of 22 years.

Although making 76 recommendations and suggestions to mitigate the environmental impact of the mine, the Mackenzie Valley Environmental Impact Review Board doubted the impacts would be significant.

But it called for plans to protect caribou, grizzly bears and wolverines in the areas; monitor water quality discharged from the mine; and cooperate with other diamond mine operators in the Canadian North to develop a standard environmental agreement.

The board also urged the Northwest Territories and Canadian governments to consider establishing a fund to promote economic diversification and sustainable economic development in the territories.

De Beers acquired Snap Lake in 2000 after taking over Winspear Diamonds and buying the remaining interest from Aber Diamond.