Yellowknife (Mar 18/05) - Now that they have stopped arguing over legal liability, the territorial and federal governments want to work together to clean up the Giant Mine site.

DIAND Minister Andy Scott signs a new deal to clean up Giant Mine. - Brent Reaney/NNSL photo

A deal signed Tuesday commits the federal government to covering most of the estimated $330 million cost of the clean-up, including underground vaults where tonnes of deadly arsenic trioxide are stored.

The Northwest Territories' financial obligation was set at $23.75 million.

Officials estimate the total time for the clean-up at 10 years.

"I'm confident that Giant Mine will continue to be a top priority," Indian Affairs Minister Andy Scott said after signing the agreement.

The 2004 federal budget committed $3.5 billion to cleaning up contaminated sites over the next 10 years. Sixty per cent - or $2.1 billion - of that money should be spent in the North, Indian Affairs Minister Andy Scott said.

Cleaning the underground vaults is expected to account for two thirds of the cost.

Both sides now say freezing the 237,000 tonnes of arsenic trioxide dust is the best way to deal with the problem.

"We're convinced that at this point in time, this really is the only acceptable method," said Brendan Bell, the Minister of Resources, Wildlife and Economic Development.

In the agreement, DIAND is required to provide information on other disposal methods as they become available, Bell said.