GNWT says Ekati, Prairie Creek security shortfalls aren't issues

The Government of the Northwest Territoriessays two mines with a security shortfall of more than $176million aren't consideredproblems.

Mines typically have to post security deposits in order to prove the ownerscan afford topay clean-up bills if theyabandon exploration and mine sites.

In the past, after some mining companies have gone bankrupt, that cost has fallen to taxpayers, likethe clean-up of Yellowknife's Giant Mine, whichis expected to cost the federal government close to $1billion.

In total, Canadian taxpayers areon the hook for $8billionin clean-up work across the country.

According to documents tabled in the legislature, Dominion Diamonds, which is the majority owner of theEkatiDiamond Mine, was supposed to post a $253-million security deposit for the mine.

But the company has only posted $82 million, which means it owes almost $171 million in securitiesto the territorial government.

For the last year, the territorial government has allowed Dominion to continue operating despite the shortfall. It says it's negotiating with Dominion and the issue should be settled soon.

Canadian Zincowes $6 million

The territorial government says a shortfall for the owner of the Prairie Creek Mine, Canadian Zinc, isn't a shortfall at all.

Security for Prairie Creek was set at $6.5 million, but the company has only put up$500,000. It's currentlydisputing the security amount set by the Mackenzie Valley Land and Water Board.

Mark Warren, Deputy Minister of Lands for the territory, says the $500,000 is enough to clean up the site right now.

"So there isn't an issue with the securities not matching up to the environmental impacts there because the company has gone on shutdown until they get an answer for the appropriate level of securities."

In the past, taxpayers across Canada have had to foot the bill for any clean-ups left unfinished in the territory.

With devolution now in place, any new oneswill be paid for by territorial taxpayers alone.