De Beers Set To Start Work At Snap Lake After Receiving Permit

De Beers is set to begin Phase One pre-production development at its Snap Lake mine in Canada after receiving the final permit to proceed from the Minister of Indian and Northern Affairs.

Having received the Class A Water License permit, De Beers will focus on underground development and bulk sample plant testing. De Beers transported the equipment needed for the work to the Snap Lake site on the winter road earlier this year.

De Beers is also preparing for construction of the mine, which is expected to begin in 2005 after the full mobilization of equipment to the site over the 2005 winter road.

It is estimated that construction of the mine, which is expected to have a life of just over 20 years, will cost $490 million. During construction, approximately 450 full time positions will be created in the area.

“Snap Lake is De Beers' first project in Canada to receive permits to proceed and our team is eager to begin work on site,” said Richard Molyneux, President & CEO of De Beers Canada Corporation. “The successful conclusion of this process will send a reassuring message to the De Beers board who have been watching the process in Canada very closely.

“We will continue to work with the people of the north and the government of the Northwest Territories to build relationships and contribute to a sustainable economy in the NWT.”

De Beers is negotiating Impact Benefit Agreements with the four Aboriginal groups who will be affected by the Snap Lake project. The company will continue to work closely with these groups in the coming months to conclude the IBAs.

In addition to Snap Lake, the company's Victor Project in Northern Ontario is undergoing an environmental assessment in preparation for mine development. De Beers is actively exploring properties in the Northwest Territories, Nunavut, Saskatchewan, Ontario, and Quebec.

Snap Lake will be the Northwest Territories third diamond mine. BHP Billiton owns Canada’s first mine, Ekati, and Aber holds Diavik with Rio Tinto.