NWT and Ottawa consider shutting down Ekati watchdog

As the NWT government takes over responsibility for closing Ekati, it is considering shutting down the diamond mine’s public watchdog.

The federal and territorial governments sent a letter to signatory Indigenous groups of Ekati’s environmental agreement late last month, seeking feedback on whether they should terminate the agreement and dissolve the Independent Environmental Monitoring Agency, known as IEMA.

The letter highlights that Ekati’s owner, Arctic Canadian Diamond Company, being placed into receivership makes it challenging for the operator to fulfill its obligation under the agreement to fund IEMA. The territory added it is relying on available financial security from the company to “address care and maintenance, closure and reclamation needs.”

“The GNWT and Canada are therefore considering whether terminating the agreement and not incurring the associated costs, including costs for IEMA, would allow the available security held under the agreement to be more effectively used for remediation,” the letter states.

The advisory board disagrees and says the environmental agreement represents a commitment to Indigenous governments to have independent oversight of the mine until full and final closure.

Oversight crucial for closure plan, board says

Marc Casas, executive director of IEMA, told Cabin Radio oversight is particularly critical during closure of the complex mine site, which includes 10 open pits, six waste rock piles and more than 200 km of roads.

He noted there is currently no final closure plan in place for Ekati and IEMA directors have decades of experience on the file.

“There’s still concerns about the government and how they’re going to close the mine, especially with the pressure to keep costs down,” he said.

Casas added that since the GNWT is now responsible for closing Ekati, it will no longer be providing technical input through the co-management system.

He said IEMA is prepared to make changes to reduce costs, adding he wants those changes to be driven by Indigenous governments and communities.

Beyond concerns with dissolving IEMA, Casas said the environmental agreement for Ekati requires that consideration be given to wildlife and air quality, factors he said are not covered by land and water permits.

Kevin O’Reilly, a longtime environmental advocate, former NWT MLA and previous executive director of IEMA, agrees ending the advisory board early would mean losing “a tremendous resource.”

According to IEMA’s latest financial statements, it had total revenues of $861,419 in 2025, including interest. O’Reilly believes that’s “not a lot of money” for the experience IEMA directors bring, adding the board can help ensure closure is done properly and does not cost taxpayers more in the long run.

O’Reilly questioned whether the NWT government will hold public engagement before it makes a decision on IEMA. He pointed out there was no public engagement before the territory decided to shut down watchdogs for the Diavik and Snap Lake mines. He said Ekati’s environmental agreement mandates public meetings as well as consultation with Indigenous peoples.

NWT environment minister Jay Macdonald’s office did not return Cabin Radio’s request for an interview prior to publication.

In a statement, Macdonald’s department said Indigenous organizations have until December 17 to provide feedback. The department said the decisions to wind up advisory bodies for Diavik and Snap Lake were independent and based on environmental agreements for those mines.

PricewaterhouseCoopers, the court-appointed receiver for Ekati, declined to comment.

Cabin Radio contacted the federal government and Indigenous signatories to Ekati’s environmental agreement. They did not respond by the time of publication.

‘Where was the early warning system?’

The conversation around IEMA comes amid concern regarding whether Arctic Canadian Diamond Company left behind enough money to remediate Ekati.

As a final closure plan is not in place, exact costs remain unclear.

In court documents, the company had estimated it would cost nearly $428 million to reclaim the mine site. The GNWT currently holds around $327 million in securities for Ekati.

Territorial officials and the head of the Wek’èezhìi Land and Water Board have insisted they’re confident available funds will cover the full costs of cleanup,

Others have said they are less convinced that taxpayers won’t be on the hook for another costly mine cleanup in the NWT.

“I think it’s pretty clear now that it’s not going to be enough,” Casas said of available security.

O’Reilly said he finds it “rather ironic” the NWT government is now considering ending the environmental agreement and IEMA to save taxpayer money “at the last minute”, rather than previously ensuring a final closure plan and adequate security were in place.

“Where was the government three, four, five years ago? Where was the early warning system to tell us that there’s going to be problems at Ekati?” he questioned.

“This newfound interest in protecting the finances, that should have been in place five years ago.”

O’Reilly said it reflects a pattern of poor environmental management in the NWT, pointing to advocacy group Alternatives North’s call for an audit of the territory’s resource management.

“GNWT’s track record with regard to resource management post-devolution is atrocious,” he said. “It’s been inadequate and has cost taxpayers tens of millions of dollars.”