Talks Hold Up Diavik Development

August 9, 1999

Talks Hold Up Diavik Development

Aber Resources Ltd. of Vancouver, British Columbia, and Rio Tinto Plc of London, England, co-owners of the site expected to become Canada's next diamond mine, hope to obtain permits to develop the mine in November despite disputes that have held up the process.

Talks between the companies and the government of Canada's Northwest Territories came to a temporary halt last month after the government insisted Rio Tinto process rough from the Diavik diamond mine locally, according to Bloomberg News Service. Talks resumed when Rio Tinto agreed to cut and polish some diamonds in the Northwest Territories, though the parties did not agree on the percentage.

The owners expect Diavik to go on-line in 2002, producing some 6 million to 8 million carats per year for 16 to 22 years, reports Bloomberg.

- by Stacey King