YELLOWKNIFE (November 6, 2014) – Minister of Lands Robert C. McLeod announced today that the Government of the Northwest Territories (GNWT) has approved Dominion Diamond Ekati Corporation’s surety bond as security for approximately $253 million under its Ekati water licence. The surety bond will account for all security currently required under the water licence.
“This action on the part of the Government of the Northwest Territories demonstrates our ability to make timely and sound decisions that support responsible, sustainable resource development in the NWT,” says Minister McLeod. “With our new devolution responsibilities, we are protecting the environment, prudently managing public funds and promoting economic opportunities in a way that balances NWT interests.”
In reaching its decision, the GNWT’s Departments of Lands, Finance and Environment and Natural Resources completed a rigorous review of Dominion Diamond’s surety bond. The departments’ work confirms that the terms of the security bond are acceptable to the GNWT.
A surety bond is an acceptable form of security under the Waters Act, subject to the GNWT’s acceptance of the terms and conditions of the bond. It is intended to protect the health and safety of the public and the environment and is an important tool to address the potential for environmental damage. The surety bond also allows Dominion Diamond to continue to invest and develop its project, bringing tangible economic benefits to the NWT economy.
Responsibility for the Waters Act and the NWT land and water management regime it is part of transferred to the GNWT with devolution. The GNWT is now responsible for addressing Dominion Diamond’s outstanding security requirements under their Type “A” Water License W2012L2- 0001 and determining the acceptable terms and conditions for the surety bond.
Director, Cabinet Communications
Government of the Northwest Territories