A photo of the liner deployment within the tailings containment area at the the Tundra Mine site, 240 kilometres northeast of Yellowknife, taken on July 23, 2014. In April, the two Tlicho-owned companies hired to remediate the area were able to walk away from their $52 million contract with the consent of the government. - photo courtesy of Aboriginal Affairs and Northern Development Canada |
Tlicho companies walk away from Tundra Mine cleanup
Dissolution of $52M contract happened with government consent
Karen K. Ho
Northern News Services
Monday, June 1, 2015
NORTHWEST TERRITORIES
A multi-million dollar contract to clean up the contaminated Tundra Mine site has been dissolved with the government's consent after a resource manager reported troubling conditions during a visit.
In 2010, Aboriginal Engineering and Tlicho Engineering and Environmental Services (AEL/TEES) were hired to remediate the Tundra mine site 240 kilometres northeast of Yellowknife. The two companies are owned by the Tlicho Investment Corporation and the contract was expected to last until this year.
On May 15, Tim Morton, resource management officer for the resource and lands division of Aboriginal Affairs and Northern Development Canada, issued a report on his inspection of the site two days prior. Morton said he was disappointed with the overall condition of the site. He also strongly recommended a site presence immediately to avoid any further spills or violations of the land-use permit.
Among his observations in his report were multiple open containers in the hazardous waste storage area, an unsealed drum of gasoline, as well of signs of leaks and hydrocarbon staining from water pumps and generators.
In a written statement, Carey Ogilvie, senior manager of contaminants and remediation at Aboriginal Affairs and Northern Development Canada, confirmed that in August, the Tlicho-owned businesses informed both Public Works and Government Services Canada as well as his department that it would be unable to complete the remediation contract.
Chris Konski, the acting regional manager of corporate communications for Public Works and Government Services Canada confirmed that a contract was awarded to the two companies in 2010 for approximately $43 million.
"Subsequent amendments totalling $8.9 million were awarded, for a total contract value of approximately $52 million," he stated in an e-mail.
He added that Public Works had paid the two businesses for work valued at $39.3 million including GST, but had not sent off the final payment yet "as outstanding items resulting from the termination of the contract agreement have not yet been completed."
Ogilvie said the scope of the work still required includes activities such as water treatment, site support, earthworks and various mobilization activities. She also confirmed that the remediation contract was terminated by mutual consent on April 22.
The CEO of the Tlicho Investment Corporation, Kelly Brenton, refused to comment. The president, Jasper Lamouvelle, also did not return calls for comment.
