Rio Tinto worried about deposit
$159M could be affected by any changes to caribou migration after Diavik closure
Karen K. Ho
Northern News Services
Monday, September 14, 2015
NORTHWEST TERRITORIES
Rio Tinto is concerned that Ekati's expansion project, the open-pit Jay pipe, will affect its ability to get back its $159-million security deposit following the closure of the nearby Diavik diamond mine.
Caribou near Arviat in summer of 2013. Documents submitted to the Mackenzie Valley Land and Water Board show that Rio Tinto is concerned the Ekati expansion, the Jay project, may affect the return of its $159-million security deposit following the closure of Diavik in 2023. - photo courtesy of ACE |
The funds have been set aside by Rio Tinto's Northern subsidiary, Diavik Diamond Mines Inc.,with the GNWT in case the company can't clean up the Diavik site after the mine's closure scheduled to take place in 2023.
In documents submitted to the Mackenzie Valley Review Board and uploaded online on Sept. 1, Rio Tinto's subsidiary said that closure of the Diavik and Ekati mines is "predicted to reverse the effect of the mines on caribou
movement."
However, the documents also say that with the Jay project, there could be a delay before that happens.
The presentation by the Rio Tinto subsidiary to the review board on caribou also said that environmental changes from Ekati's Jay Project were predicted to include the area surrounding Diavik, likely affecting its ability to demonstrate increases in caribou numbers.
Diavik is located approximately 300 kilometres northeast of Yellowknife, Ekati is located about 20 kilometres away and the Jay pipe is 30 kilometres southeast of Ekati's main infrastructure.
One of the three recommendations made by the Rio Tinto subsidiary include through an environmental assessment into whether Ekati's Jay pipe expansion project will likely cause adverse effects.
On Sept. 3, the review board informed the Department of Environment and Natural Resources as well as Aboriginal Affairs and Northern Development Canada that it would be following that recommendation.
"The potential for impacts to the Bathurst caribou herd from the Jay Project is a key line of inquiry in the environmental assessment," wrote chairperson JoAnne Deneron to the federal and territorial governments.
Dominion Diamond also has an ownership stake in both the Diavik and Ekati diamond mines.
While it does not operate Diavik, its joint arrangement with Rio Tinto means Dominion Diamond pays 40 per cent of the mine's operating and capital costs while receiving 40 per cent of the mine's diamond results. At Ekati, Dominion Diamond holds a 88.9 per cent ownership as well as a 65.3 per cent ownership in the surrounding areas.
"We look forward to working with all parties, including (Diavik), to address the remaining questions concerning the Jay Project during the next phase of the Environmental Assessment process," wrote Elliot Holland Dominion Diamond vice-president of the Jay Project in an e-mail to News/North.
The review board has scheduled public hearings on the Jay project to take place from Sept. 14 to 21 in Yellowknife, Behchoko, Lutsel K'e and Kugluktuk.
Rio Tinto could not be reached for comment.
