N.W.T. mines owe 'hundreds of millions' in securities

Mining companies in the Northwest Territories owe the territorial government hundreds of millions of dollars in securities.

The issue was brought up by MLA Bob Bromley in the legislative assembly this afternoon.

"The devolution agreement said we didn't need to accept these operating sites until we were prepared to do so," said Bromley in an interview.

"There apparently has been a decision by this government to accept sites without assessed securities being held."

According to documents tabled in the legislatureDominion Diamonds owes almost $171 million in securitiesto the territorial government.

There may have been some slippage in the past.- N.W.T. Minister of LandsRobert C McLeod

The company is the majority owner of Ekati Diamond Mine and the partial-owner of Diavik Diamond Mine.

Canadian Zinc, which owns the Prairie Creek Mine, owes $6 million.

Mining companies are required to put predetermined securities aside to prove they can afford to clean up their mines.

In the past, after some mining companies have gone bankrupt, that cost has fallen to taxpayers.

For example, the clean-up of Yellowknife's Giant Mine is expected to cost the federal government close to $1billion.

Securities used to be collected by the federal government. After devolution, that responsibility fell to the territorial government.

"As we take over authority as the Government of the Northwest Territories, we have the ability to [collect securities]and the responsibility to do that for our public," said Bromley.

"Obviously we don't have the deep pockets of the federal government and all of the Canadian taxpayers to draw upon to the same degree that the federal government does."

Minister of LandsRobert C. McLeod responded to questions about the securities earlier Tuesday in the legislature.

"This is a responsibility that has been given to us," he said.

"There may have been some slippage in the past. We as a territorial government are going to do our best to make sure that this doesn't happen again."

McLeod says a Liability Division has been set up within the Department to make sure these securities are paid.

On mobile? Click here to see the list of securities owed and held by the GNWT