Indigenous govs, businesses not hopeful of any payment as Ekati shuts

Grand Chief Jackson Lafferty called it “wishful thinking” when asked if he expected the Tłı̨chǫ Government and its companies with contracts at Ekati to get paid.

The NWT diamond mine entered receivership this month, owing hundreds of millions of dollars. The North Slave Métis Alliance and Air Tindi agree that the prospects are bleak of seeing any of the money they are owed.

“We’re probably sitting in the same boat as a lot of creditors,” said North Slave Métis Alliance President Marc Whitford.

While the NSMA itself had no outstanding contracts with Ekati when it closed, one of its businesses – a joint venture named Metcrete Services – is owed $705,000 according to a list of creditors released in May.

Chris Reynolds is the president of Air Tindi. The company operated a joint venture with Tłı̨chǫ Air that is owed $40,800 on that list. Reynolds said the airline “wrote off our receivables as bad debt” when Ekati entered creditor protection earlier this year.

“Since that time, they have done some flying, but they’ve been prepaying for all of their flights,” Reynolds said of the mine.

The biggest impact, according to both Whitford and Lafferty, is losing payments associated with impact benefit agreements.

Mines sign those agreements, known as IBAs, with Indigenous governments. The deals provide payments, jobs or other benefits to communities where mine operations are expected to negatively impact the livelihoods and traditional territories of Indigenous peoples.

The Tłı̨chǫ Government was owed at least $2.15 million in the May creditor list, some or all of which may be related to missed IBA payments.

“We’ll feel the loss in that area,” said Grand Chief Lafferty.

Whitford said losing the mine will have a “huge impact on ourselves as a collective of Métis people, simply on the basis that there’s no impact benefit agreement money coming in, and it’s a fair chunk of money.”

Now, Whitford wants the receivers taking over the mine – insolvency firm PricewaterhouseCoopers – to include all Indigenous governments who had IBAs in the coming reclamation process.

According to the mine’s website, IBAs had also been signed with the Hamlet of Kugluktuk & Kitikmeot Inuit Association and the Akaitcho Treaty 8 Nations (Yellowknives Dene First Nation and Łútsël K’é Dene First Nation).

“This way, people don’t leave us with such a bitter taste in our mouth,” said Whitford.

‘Jobs to be had’

Lafferty agreed with Whitford, saying the Tłı̨chǫ Government wants “to be involved, we want to be part of the decision-making” for the remediation and closure of Ekati.

To do so effectively, Lafferty said the Tłı̨chǫ Government needs to “beef up” its communication with mine owner Burgundy Diamond Mines, PricewaterhouseCoopers and the GNWT.

“Our relationship needs to be more proactive,” said Lafferty.

He described Ekati as an important employer for the Tłı̨chǫ for more than 25 years, adding that more than 50 Tłı̨chǫ people were working for Ekati directly or indirectly.

“This is obviously a very difficult time for our people, those that are working at the mine and their family,” said Lafferty.

Lafferty said the Tłı̨chǫ Government has already started contacting mine operators across Canada looking for other opportunities workers can pursue.

“Our goal is to help people transition into a new job as quickly as possible while supporting them through this challenging time,” said Lafferty.

The closure of Ekati may bring a little less work for Air Tindi but won’t result in any job cuts, Reynolds said. Even so, he feels bad for those that are affected.

“From a northerner point of view, it’s obviously very concerning for the economy and all the jobs lost for people,” said Reynolds.

“I hope [employees] bounce back quickly and can take advantage of the money the federal government’s promising for infrastructure and critical mineral development.”

Reynolds still thinks there are “jobs to be had” in northern mining, just in smaller-scale operations.

“I feel optimistic about the economy, but things need to keep moving,” said Reynolds.

Det’on Cho Group of Companies, the Yellowknives Dene First Nation’s business arm, said in an emailed statement to Cabin Radio that Ekati’s closure “accelerates a transition we have actively prepared for.”

“We are positioned to pivot those skills, resources, and northern expertise toward major infrastructure projects and new growth opportunities that will allow us to remain a strong contributor of jobs and revenues to the NWT economy,” the company said of the capacity it developed working with the diamond mines.