Minister says ‘tough decisions’ must be made over Ekati funds

As the future of the insolvent Ekati diamond mine’s public watchdog hangs in the balance, the NWT’s environment minister says, “tough decisions” have to be made.

The territorial and federal governments are considering shutting down the Independent Environmental Monitoring Agency, or IEMA. They say doing so would allow funds previously earmarked for IEMA to be “more effectively used for remediation.”

Yellowknife North MLA Shauna Morgan opposed that idea in the NWT Legislative Assembly on Wednesday.

“We cannot allow IEMA to be shut down,” she said.

“As the mine suddenly has to transition to closure, this is a critical time to have the participation of IEMA’s knowledgeable experts.”

Morgan said $12.8 million was set aside in 2015 specifically to support the agency’s continued operation for an estimated 34 years.

Environment minister Jay Macdonald told Morgan that under the environmental agreement for Ekati, those funds can be used for a variety of purposes.

“Our goal here … is not to put an undue burden on the taxpayers that resulted from the premature closure of this mine,” he said.

Macdonald said there is enough funding for IEMA to keep operating until the end of the current fiscal year. He said those funds include a payment Burgundy Diamond Mines made before it filed for insolvency protection, unspent funds from the agency’s 2025 budget, and temporary funding provided by the territorial government.

The NWT government currently holds around $327 million in securities for Ekati.

Territorial officials and the head of the Wek’èezhìi Land and Water Board have publicly insisted they’re confident available funds will cover the full cost of closing and remediating the mine site.

Environmental advocates, conversely, say they are positive taxpayers will end up on the hook for another costly mine cleanup in the NWT.

Exactly how much it will cost to clean up Ekati is unclear as there is no approved final closure and reclamation plan in place.

Asked whether the federal government is prepared to step in and provide financial support if security does not cover the costs of cleanup, a spokesperson for Crown-Indigenous and Northern Affairs Canada did not give a direct answer.

The spokesperson pointed to the 2014 devolution agreement and the NWT’s responsibility for lands and resources, and said any questions about security and remediation should be directed to the GNWT.

NWT, Canada consulting Indigenous groups

The territorial and Canadian governments have given Indigenous organizations that are signatories to Ekati’s environmental agreement until December 17 to provide input on IEMA’s future. The governments have not released a date for any final decision.

Asked whether consultation would expand beyond a letter sent to signatories, the federal spokesperson said it is “too early in the process to determine what future steps might be required.”

“At this stage of the consultation process, Canada is looking to identify and understand any potential adverse impacts a potential termination and dissolution could have and if these could be appropriately accommodated or mitigated,” the spokesperson said.

IEMA has said it will discuss the governments’ proposal to terminate Ekati’s environmental agreement and dissolve the agency at its 2026 annual general meeting on November 13. A representative from the territorial environment department is expected to attend.

The federal spokesperson said since the agreement was signed in 1997, regulatory systems have improved and Indigenous participation and engagement has “grown in breadth and depth.”

In the legislature on Wednesday, however, Morgan said that unlike IEMA, regulatory boards are unable to conduct their own research and monitoring.

“Their decisions are only as good as the quality of the input they get,” she said.

“The land and water board cannot lose its access to this essential independent expertise if we care about fulfilling our commitment to protect the land and water for future generations.”