Canadian Agency Approves First Mine In Nunavut

A regulatory agency in northern Canada has approved what would be the country’s third diamond mine and the first in Nunavut.

The Jericho mine project, proposed by Vancouver-based Tahera Corp, still needs final approval from the Minister of Indian affairs and Northern Development, Andy Mitchell.

The Nunavut Impact Review Board, which conducted the environment assessment, said in a letter to the minister that it was giving Tahera the go-ahead, subject to conditions. Those terms and conditions were not immediately made available. The review board's report will not be made public until later this month.

The proposed Jericho mine would be located 420 kilometers northeast of Yellowknife near Contwoyto Lake.

Tahera has said construction would begin in 2005, and diamonds would be coming out of the ground by the end of that year. Costing around $50 million, the Jericho mine would have a projected life of eight years.

Construction would create up to 60 jobs, later a workforce of between 48 and 116 will be needed for mining.

Tahera signed a deal in December with the Inuit of western Nunavut that was essential to the construction of the diamond mine. The agreement covers jobs, training and business opportunities for the 4,500 Inuit who live in the region.

Two other diamond mines are operating in the Northwest Territories - Ekati, owned by BHP Billiton, and Diavik, owned by Rio Tinto and Aber Resources.

Meanwhile, diamond giant De Beers is also developing a diamond mine in Nunavut. The Snap Lake project, owned by De Beers Canada Corp, would last 22 years and is scheduled to open in 2006.

There is also ongoing exploration in northern Alberta where some diamond-bearing kimberlite ore bodies have produced decent yields.

And in Saskatchewan, one of the largest bodies of diamond-bearing ore in the world has been discovered 50 kilometers north of Prince Albert.