De Beers, Dene First Nation, Sign Snap Lake Impact Benefit Agreement

The Yellowknives Dene First Nation and De Beers Canada Inc. have reached an agreement on the terms of an Impact Benefit Agreement (IBA) for the Snap Lake Project. This follows a community meeting where members of the Yellowknives Dene First Nation voted in favor of the provisions in the proposed agreement.

Subsequently, a Band Council Resolution on November 10th authorized Chief Peter Liske and Chief Fred Sangris to execute the Agreement.

In a joint statement the sides said that the IBA sets out the specific benefits that the Yellowknives Dene will receive from the Snap Lake Project in terms of employment, business opportunities, training and development, and financial compensation for loss of the use of the land while it is being mined.

“As the Snap Lake Project has advanced, and during the IBA negotiations, we have managed our business to ensure that the Yellowknives Dene experience tangible benefits from the Snap Lake Project,” said John McConnell, vice president - NWT Projects. “Concluding this agreement builds on our success in this area and provides a more formal mechanism to define a positive, long term relationship with the community.”

“Our negotiation team has worked very hard over the past three years, and we are now satisfied that we have reached a final agreement that will benefit the Yellowknives Dene First Nation through employment, training and business opportunities for the life of this mine at Snap Lake,” said Chief Peter Liske. “It’s a good agreement.”

“This is our third Impact Benefit Agreement/Participation Agreement with the diamond industry. This agreement gives us the opportunity to provide good jobs, training, and business opportunities for our people, while we maintain and practice our traditional way of life in Drygeese Territory,” said Fred Sangris, Chief for the Yellowknives Dene First Nation Ndilo. “We know De Beers will respect the land, water, animals, environment and the spirit of intent in this agreement for the life of the mine at Snap Lake.”

Commenting on the agreement, Richard Molyneux, president and CEO of De Beers Canada Inc. said, “De Beers has always considered positive relationships with Aboriginal communities to be a priority. This IBA with the Yellowknives Dene reflects our commitment to ensure that the Aboriginal Groups impacted by the Snap Lake Project benefit from the project through participation.”

“The conclusion of this agreement follows closely on the heels of a similar agreement signed by De Beers and the Attawapiskat First Nation earlier this month for the Victor Project in Northern Ontario,” he added.

The Snap Lake mine will employ 500 people during full production, and is expected to produce 1.5 million carats per year. It is the first completely underground diamond mine in Canada and will be De Beers’ first mine outside Africa.

The mine is scheduled to open in the third quarter of 2007, with full production being achieved in 2008.

The Impact Benefit Agreement was signed in Ndilo. A formal signing ceremony involving the community was scheduled to take place in Dettah on January 1, 2006.