Canadian Government Reaches Agreement on $1.3B Diavik Diamond Project

In early March 2000, after weeks of negotiations, the Canadian Government’s Department of Indian Affairs and Northern Development announced it had succeeded in reaching agreement with Diavik Diamond Mines Inc. (Diavik) in relation to the $1.3 billion Diavik diamond project in the Northwest Territories. The negotiations centred around settling an environmental agreement over the land and also over security deposits and other related security matters. In addition to the significant direct and indirect jobs created and ancillary economic benefits arising in connection with the mine projects, the Canadian Government is projected to obtain about $7 billion in resource royalties from the operation of these mines.

Chris Baldwin and Brad Armstrong of Lawson Lundell Lawson & McIntosh represented Diavik. Nicholas Williams and Jacques Demers of Meighen Demers together with James McConnell and Lee Webber from the Department of Justice Canada advised the Canadian Government.