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For immediate release
December 09, 2002

DE BEERS TO MAXIMIZE LOCAL EMPLOYMENT AND BEGIN DISCUSSIONS ON THE PROVISION OF ROUGH DIAMONDS TO THE NWT

Yellowknife, December 09 2002 — Public Technical Sessions, part of the Mackenzie Valley Environmental Impact Review Board (MVEIRB) review of the De Beers Snap Lake Diamond Project, concluded Friday following two weeks of detailed discussions on technical aspects of the project.

The final two days of the sessions addressed the socio-economic impacts of the project, such as the employment of northerners, the supply of Snap Lake production to the local secondary industry and the branding of Canadian diamonds.

On the subject of local employment De Beers stated that at full production the mine will employ approximately 500 people and that the company’s intention is to hire as many northerners as the local labour market can provide. The company also provided details of its Human Resources strategy, and the training initiatives which will be developed in partnership with other stakeholders, to tap the as yet unrealized potential amongst northern people.

“We are committed to maximizing local employment and will make very significant investments both in terms of finance and other resources, to achieve that,” said John McConnell, Vice President, NWT Projects for De Beers. “It is De Beers’ practice to maximize local Aboriginal employment wherever we operate, on the basis that this represents an ideal goal of 100%. The company has achieved in excess of 80% of this target on most of our mines in Southern Africa.”

In response to a question regarding the supply of Snap Lake production to the NWT cutting and polishing industry, Richard Molyneux, President and CEO of De Beers Canada said, “De Beers recognizes and respects the policy of the Government of the Northwest Territories (GNWT) on this issue. We see two possible avenues for the supply of Snap Lake rough diamonds to the NWT; one means is through the socio-economic agreement which is under negotiation with GNWT, and the other is through Aboriginal equity participation in the project which would be covered by the Impact Benefit Agreements (IBAs) currently being negotiated with the affected Aboriginal groups.”

Discussions with the GNWT on the supply of rough diamonds, as part of the socio-economic agreement, are to begin this week. The socio-economic agreement will cover a wide range of issues, including the employment of northerners at the mine.

On the subject of the branding of Canadian diamonds De Beers said that preliminary research indicates that the current Canadian brands are being well promoted and are able to meet market needs, and that under present market conditions an additional De Beers Canadian brand would negatively impact the current branding initiatives.

Molyneux pointed out the dynamic nature of the industry and said that De Beers would keep a close watch on developments within the industry and would review this position as appropriate over time and as the Snap Lake project moves closer to production.

“We believe these sessions were thorough and productive and that all affected stakeholders were given an opportunity to clarify their technical questions concerning the Snap Lake project. We look forward to continuing this process through the general public sessions scheduled for March next year. It is our desire to see the Snap Lake Project proceed in an environmentally and socially responsible manner to the benefit of the NWT and De Beers, ” said McConnell.


- Ends -


For further information contact:
Linda Dorrington
Manager - Public and Corporate Affairs
De Beers Canada
Email: linda.dorrington@ca.debeersgroup.com
Tel: (416) 645-1710 ext 412 / (905) 849-0619



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