Andrea Markey
Northern News Services

Yellowknife (Oct 03/05) - Members of an environmental agency have accused BHP Billiton of interfering with the board's independence.

While the Independent Environmental Monitoring Agency said environmental performance at Ekati continues to be good, its 2004-2005 report released in August contains harsh words for the company that owns a majority share of Ekati diamond mine.

Independent Environmental Monitoring Agency members include: Kitikmeot Inuit Association North Slave Metis Alliance Tlicho Council (formerly Dogrib Treaty 11 Council) Akaitcho Treaty 8 BHP Billiton GNWT Government of Canada

"The Agency has had problems with BHPB because the company has several times tried to interfere with the Agency's independence," wrote chair Bill Ross in his introduction.

According to the report, in February BHP rejected the agency's work plan and budget for the next two years. This was the first time that had happened.

BHP has a role

The agency was created under an environmental agreement with the territorial and federal governments and BHP in 1997. It receives its core funding from the company.

Because the environmental agreement requires BHP and the agency to agree on the work plan and budget, the company does have a role, said Ross in an interview.

"But we don't think it is proper for the company to deny us the opportunity to meet our mandate in a reasonable manner by providing conditional funding."

BHP is continuing to fund the agency at the same rate as last year while working through the dispute process. At issue are annual environmental and reclamation and closure workshops, said Ross. The workshops were held by BHP from 1998 until 2003, when the company decided to hold them every three years. For the last two years, the agency has hosted the workshops, funded by Indian and Northern Affairs Canada.

"We regarded that workshop as one of the most important mechanisms for effective adaptive environmental management at Ekati," said Ross. "The company believes we should not be doing that. We are not prepared to agree to the principle the company can tell us not to do things that are within our mandate."

According to the agency, BHP agreed to hold annual community visits although the agency reported it doesn't see evidence of this happening. In addition, meeting with individual communities is not the same as collective meetings with all affected communities, regulators and company consultants, as a forum to disseminate information and offer advice to the company, said Ross.

"It is the agency's view it has been dragging on for far too long," said Ross.

"We would far rather be getting back to promoting good environmental management at Ekati than worrying about and spending time on the resolution of disputes with the company over our budget and work plan."

Settle it soon

The dispute must be settled by the three signatories to the environmental agreement which are the GNWT, Government of Canada (designated as Indian and Northern Affairs Canada) and BHP.

"We are discussing it with both BHPB and the agency trying to help them resolve this issue," said David Livingstone, director of renewable resources and environment with INAC. "The dispute is largely between BHPB and the agency.

BHP Billiton declined to comment while the dispute resolution process is ongoing, said Deana Twissell, senior external affairs officer.