Diamond facilities still empty 1 year after sale announced

There are still no polar bear diamonds being manufactured in Yellowknife.

That's despite an announcement a year agothat an Edmonton-based company would revivetwo shuttered diamond polishing facilities.

Last January, the Government of the Northwest Territories announced Deepak International was buying two GNWT-owned buildingsfor diamond manufacturing operations and thecompany would also have exclusive rights to the polar bear trademark.

But the sale of those buildings is still pending.

"I am excited to say we are just steps away [from]closing the deal on the buildings," saysDeepak Kumar.

"I didn't realize what a tremendous amount of paperwork was involved. It was my assumption that I would have all the moving parts together but it did take longer than that."

Kumar wouldn't elaborate on those delays. He says hesecured $1.9 million from Canadian financial institutionsto finance the purchase of the buildings before the big announcement.Kumar says that money is now with lawyers who arefinalizing the deal.

He says he has already hired 35 workers and bought equipment that's being stored in warehouses across Canada.

DeepakInternational gained Approved NWT Diamond Manufacturerstatus last year, allowing it to buy a portion of the 10 per cent of N.W.T. rough diamond production offered by the territorys mines to local cutting and polishing operations.

Kumarsays he has secured deals with the mining companies for rough diamonds, but wouldn't give details.

Pierre Leblanc, president of Canadian Diamond Consultants, says the delay is worrisome.

"Somewhat afraid we may have a repeat with a similar situation a number of years ago with Lev Leviev one of the big names in the diamond industry that was supposed to buy the ArslanianCutting Works at the time," he says. "Months went on and eventually nothing happened."

N.W.T. Industry Minster David Ramsay says he's confident the polishing factories will produce polar bear diamonds soon.

Kumar says the grand opening is now scheduled for April.