Mr. Speaker, I would like to provide this House with an update of the government's progress on developing a diamond manufacturing industry in the Northwest Territories.
framework establishes the Diamond Review Committee. This is interdepartmental group which will review, assess and provide recommendations on all diamond value added proposals. This will ensure a coordinated approach to the allocation of funding. The creation of this policy framework and the review committee also establishes the transparency required for industry and government to deal with each other in good faith.
The Diamond Review Committee has assessed a number of proposals. As a result, I am pleased to announce that our government will be supporting Sirius Diamonds in establishing the Northwest Territories' first diamond cutting and polishing facility.
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The government has agreed to provide a five-year loan guarantee to Sirius Diamonds. The initial amount is up to $5 million. Depending on production, the amount increases on a graduated basis up to $10 million. In addition, we will provide training contributions and wage subsidies totalling $690,000, and $250,000 towards the purchase of diamond manufacturing equipment.
The cutting and polishing plant will be located at the Yellowknife airport, adjacent to the BHP sorting and valuation centre. Initially, Sirius Diamonds NWT will hire and train 25 northerners. They will recruit more northern candidates next spring, and eventually the company plans to have as many as 50 trained personnel within five years.
Mr. Speaker, I would like to take this opportunity now to recognize the efforts of my colleagues Mr. Dent and the Department of Education, Culture and Employment regarding the training and wage subsidy component. Mr. Todd and the Financial Management Board Secretariat regarding matters concerning the loan guarantee and Mr. Antoine and the Department of Transportation for assistance regarding the airport location.
In addition, the support from the Yellowknife MLA's, Mr Ootes, Mr Henry and Mr. Erasmus and from Mayor Lovell and the City of Yellowknife was helpful and encouraging as we worked towards the finalization of the agreement.
The Government of the Northwest Territories has a vision for the north, Mr. Speaker. We see the NWT as the "Diamond Centre" of North America. We see the NWT being recognized worldwide for its rough and high quality polished diamonds, as well as its unique northern jewellery.
The GNWT will continue to work toward that vision with BHP Diamonds, other diamond manufacturers and future NWT diamond producers. We will continue to work toward developing a strong, viable diamond industry in the Northwest Territories. Thank you.
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