The territorial regulator that oversees land and water use in the Tłı̨chǫ and North Slave regions has accused PricewaterhouseCoopers (PwC) — the court-appointed receiver for the insolvent Ekati diamond mine — of “direct non-compliance” after the receiver allegedly authorised continued disposal of an emulsion into a containment area the board had specifically forbidden.
Urgent meeting sought with minister
In a letter sent late last week, Wek’èezhìı Land and Water Board chair Mason Mantla requested an urgent meeting with Northwest Territories environment minister Jay Macdonald to discuss the actions and communications surrounding the disposal activity. Mantla warned the board could consider suspending the Ekati water licence given what he described as direct non‑compliance with the board’s direction.
“The Board instructed PwC not to continue this unauthorized disposal and PwC did not abide by this decision,” Mantla wrote.
The water licence governs how the mine is required to manage and mitigate impacts to the land and water. Suspension of a licence would be an exceptional regulatory step with immediate operational and environmental consequences for a site already in insolvency and receivership.
Conflicting accounts over inspections
The board’s letter says PwC told officials an inspector had told staff the emulsion disposal was acceptable. PwC also reportedly told the board that the mine had been disposing of emulsion that way for more than a year. The board maintains it had given clear direction that the practice stop.
PwC did not respond to requests for comment through media channels. The Government of the Northwest Territories confirmed the minister had been invited to the meeting but did not make him available for interview. In a written statement, Macdonald said meetings were being organised to address the concerns and it would be premature to comment further while that process is under way.
“Given that this process is underway, it would be premature for me to comment further on these matters before those discussions have taken place,” Macdonald said in a written statement.
Missing data, abandoned emulsion and a troubled mine
The dispute over the emulsion disposal is one episode in the steady unravelling of Ekati, once a major employer and economic driver in the Northwest Territories. The mine has been insolvent and in receivership; the receiver — PwC — is charged with overseeing closure and environmental obligations. The board’s letter frames the emulsion issue against a backdrop of missing data and accumulations of contaminated material that present risks to land and water.
For northern communities, Indigenous governments and downstream users, questions about who made decisions, which directives were followed, and how inspections were logged and communicated are not abstract. Improperly managed emulsions can present chemical, ecological and human-health hazards if released to groundwater or surface waters.
- Key parties involved: PwC (receiver), Wek’èezhìı Land and Water Board (regulator), Ekati owner Burgundy, GNWT environment minister Jay Macdonald.
- Regulatory risk: Board could consider suspension of the Ekati water licence due to direct non‑compliance.
- Pending actions: Urgent meeting requested; GNWT arranging discussions; information sought about 18 months of inspector communications.
Information requested from government
Mantla asked Minister Macdonald for a substantial package of information about the Government of the Northwest Territories’ interactions with both Ekati’s owner Burgundy and with PwC. That includes records of how government inspectors have communicated with the mine over the past 18 months — a timeframe the board says is relevant to understanding whether the disposal practice was authorised or tolerated by government staff.
The board’s request underscores procedural as well as environmental concerns. If government inspectors provided direction that conflicted with the board’s prohibition, that would add complexity to a regulatory oversight problem; if inspectors did not, it raises questions about the receiver’s compliance and record-keeping.
What’s next
Officials say meetings are being organised to resolve the dispute and determine how to address the board’s concerns. Any decision to suspend a water licence would be momentous for an already insolvent operation: it could constrain site activities, complicate closure work and accelerate debates about who will pay for remediation and long-term monitoring.
| Issue | Current status |
|---|---|
| Emulsion disposal | Board says PwC continued unauthorised disposal |
| Regulatory action | Board warned it could suspend water licence |
| Government response | Meetings being organised; minister invited |
The Ekati situation remains fluid. As the territory’s regulator presses for clarity and potential enforcement, communities and regulators will watch closely for records, inspection logs and decisions that determine whether environmental hazards are being contained or allowed to persist at one of the Northwest Territories’ most consequential industrial sites.
— Warren Lafferty, Northwest Territories Correspondent
