NWT minister decides to shutdown Diavik watchdog by early 2027

The NWT’s environment minister has granted Diavik’s request to shut down an independent oversight board for the diamond mine by the end of March 2027.

The Environmental Monitoring Advisory Board, or Emab, was established as a requirement under the environmental agreement for Diavik. The board provides independent oversight of the mine and the regulatory process with the aim of protecting the environment.

The environmental agreement states that once Diavik ceases commercial production, the minister may set a schedule for winding down and concluding the operation of Emab.

Diavik Diamond Mines Inc or DDMI, a subsidiary of Rio Tinto, had requested in January that environment minister Jay Macdonald shut down Emab after the mine ended production in March. Alternatively, DDMI proposed that Macdonald wind down Emab’s operations by the end of March 2027.

The company said since the environmental agreement for the mine was signed in 2000, the NWT has developed a “robust, transparent and inclusive co-management regulatory regime.”

DDMI had argued that concluding Emab would remove regulatory duplication and said the funding it provides to the advisory board could be used more efficiently during the mine’s closure.

Emab had opposed DDMI’s request arguing its work should continue through closure of the mine until reclamation of the site is complete.

The board highlighted its independence from both Diavik and regulators alongside its role in representing community perspectives. The board also expressed concern that the closure phase of a mine requires “continued oversight rather than reduced scrutiny.”

In a letter to the parties to the environmental agreement dated July 31, which has since been posted to Emab’s website, Macdonald sided with DDMI. He concluded that winding down Emab would be “appropriate and consistent with the intent of the agreement.”

“This approach recognizes the reduced need for Emab’s oversight role through the transition to closure, given the mature, integrated co-management system that has developed in the Northwest Territories since 2000,” the letter states.

Diavik to establish fund for technical reviews

Macdonald wrote that Emab should conclude its activities no later than March 31, 2027, and the board should adjust its work plan and budget as required to wind down by that time. He added that Emab should plan to transfer records including environmental data, studies, reports, website content, physical assets and remaining funds.

Macdonald’s decision requires DDMI to review and digitize Emab’s library to ensure there are no gaps in historical information.

According to the decision, DDMI has also agreed to establish a fund of $150,000 per year for three years to support independent technical reviews. After March 31, 2030, Macdonald’s decision requires the company to evaluate the effectiveness of that fund with Indigenous parties, including considering continuing funding for third-party technical reviews if needed.

In making his decision, Macdonald said he considered submissions by both DDMI and Emab as well as the Tłı̨chǫ Government and Yellowknives Dene First Nation – which supported the wind-down of the advisory board – and the North Slave Métis Alliance and Kitikmeot Inuit Association, which supported the continued operation of Emab through Diavik’s closure.

Macdonald said he believes the establishment of the independent technical review fund, as well as DDMI’s traditional knowledge monitoring framework – which remains under development – will address concerns related to shutting down Emab.

His letter states that while closure and post-closure of the mine will “involve some level of uncertainty,” he believes the territory’s regulatory framework will provide for sufficient consultation and oversight.

“DDMI is the first major diamond mine to go through a planned closure under the regulatory system of the NWT and has integrated closure planning and progressive reclamation throughout its operations, demonstrating its credibility as an operator while reducing its environmental liabilities,” he wrote.

Active closure work at Diavik is expected to take until 2029, followed by a monitoring period that could last into the 2040s before Rio Tinto relinquishes the site.

Diavik ‘comfortable’ with minister’s terms

In a statement to Cabin Radio, Garrett Hinchey, a spokesperson for Diavik, said the company is “comfortable with the terms of the minister’s decision.”

“We recognize the valuable contributions made by Emab as an oversight body over the past two decades and remain committed to working in collaboration with Emab through the wind-down period,” he wrote.

“Diavik’s focus remains on closing the mine responsibly, in accordance with applicable regulatory requirements and with continued engagement with Indigenous and government partners.”

Hinchey said Diavik is continuing to work with Indigenous partners on implementing a traditional monitoring plan for closure. He added that, in July, traditional knowledge monitors including youth, Elders and Indigenous government staff visited the mine site to observe closure and provide input on that plan.

Cabin Radio has requested comment from Emab on the minister’s decision.