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Watchdog still seeking answers
Federal government letter does not address $903-million figure but insists cost of clean-up remains $449 million

Simon Whitehouse
Northern News Services
Published Friday, April 12, 2013

SOMBA K'E/YELLOWKNIFE
It's been more than two weeks since Yellowknifers learned of a report on Giant Mine that revealed a revised clean-up bill of $1 billion, but the federal government has yet to address that figure.

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The Department of Aboriginal Affairs and Northern Development has yet to account for the revised $903-million figure found in its Sept. 1 remediation progress report for Giant Mine. - NNSL file photo

The Department of Aboriginal Affairs and Northern Development did send a letter to Yellowknifer in response to a pair of articles appearing in the March 29 edition. But the letter makes no reference to the $903-million amount that appeared in its remediation progress report from Sept. 1.

Instead, Zoe Raemer, the department's associate regional director general, insists the "cost to implement the remediation plan remains $449 million," as stated to the Mackenzie Valley Environmental Impact Review Board last fall during public hearings into the government's clean-up plans for Giant Mine.

The letter was forwarded to environmental watchdog Alternatives North, which had made the access-to-information request that the revealed the revised figure. Representative Kevin O'Reilly said the assertions made in the letter don't make sense.

He said when taking the $449 million and adding the $160 million the federal government has already spent on care and maintenance since taking over the abandoned mine in 1999, that only comes to $609 million. Even if counting recently awarded contracts, the figures still fall short, said O'Reilly.

"I tallied up what I figured costs to be and there is still a big shortfall here," said O'Reilly on Wednesday.

Raemer's letter does not deny that the Treasury Board of Canada approved an increase in the total project to $903 million or that the federal government kept the community in the dark on that figure for much of last year. Last month, the Giant Mine remediation team gave a $25-million contract to Calgary-based engineering firm Parsons Canada to take down Giant Mine's roaster complex this summer, the most contaminated structure at the mine site. Parsons Canada declined comment and calls were referred to Public Works Canada.

The project team this year has also given a care and maintenance contract for $9.63 million a year for two years to Nuna Logistics/Det'on Cho Corporation/Nuna Joint Venture. Another $3.15 million per year contract was given to AECOM for interim-mine engineering services.

An interim construction management contract to oversee the deconstruction of the roaster complex and underground stabilization also went to AG Clark Holdings Limited for $7.71 million. A call was put in to this Edmonton-based company, however, calls were not returned by press time.

"When I add all of those contracts up, that still only comes to $664 million," said O'Reilly, admitting there are three other contracts that are open.

Calls were put to the Department of Aboriginal Affairs and Northern Canada and Raemer's office this week, however, a representative did not get back to Yellowknifer by press time.

- See page 9 for related

letter to the editor.

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