Abandoned explosives plant on Jericho mine site centre of lawsuit over cleanup
Kitikmeot Inuit Association says plant owner Dyno Nobel Inc. responsible for remediation; Dyno points to federal government
This aerial imiage of Jericho mine shows which part of the property is on Crown land versus Inuit-owned land. The Kitikmeot Inuit Association has sued Dyno Nobel Inc., the company contracted to supply explosives to the diamond mine when it was in production, saying Dyno is responsible for cleaning up the explosives site. Dyno says the federal government has that responsibility. (Photo courtesy of the Nunavut Court of Justice)
The federal government could be left with the responsibility of cleaning up an abandoned explosives plant on Kitikmeot land after a Nunavut court judge’s decision earlier this month.
The case gives a glimpse into the complex, expensive and lengthy process of land remediation when a mining company goes under.
Currently, the federal government manages companies’ security deposits and is generally expected to take on cleanup duties in these situations. When devolution comes into effect in 2027, that liability will transfer to the Nunavut government.
The explosives plant is the focus of a lawsuit between the Kitikmeot Inuit Association and Dyno Nobel Inc., the company contracted in 2005 to supply explosives to the Jericho diamond mine located about 250 kilometres southeast of Kugluktuk.
Jericho produced diamonds between 2006 and 2008 for Tahera Diamond Corp.
The Jericho mine site straddles federal and Inuit-owned land, on which KIA has surface rights. Tahera entered into an impact benefit agreement with KIA in 2004, outlining benefits that would be provided to Inuit as a result of the Jericho mine.
The explosives plant and equipment are located on the Inuit-owned portion of the parcel.
Tahera filed for bankruptcy in 2008 and mothballed Jericho. Shear Diamonds bought the mine in 2010, and later abandoned it in 2013 when the company folded.
The federal government declared the mine abandoned in 2014, and soon after the Nunavut Court of Justice handed title to the property and responsibility for its cleanup to the federal Department of Aboriginal Affairs and Northern Development (now known as Crown-Indigenous Relations and Northern Affairs Canada).
The approximately $10-million cleanup project began in 2017. It focused only on what’s on Crown land and ignored the Inuit-owned portion.
In August 2020, KIA filed a lawsuit against Dyno Nobel, alleging Dyno is responsible for cleaning up the explosives plant.
The emulsion plant, explosive storage units, an ammonium nitrate storage pad and waste rock piles are now an “unauthorized occupation” of KIA-owned land, said the statement of claim, and interferes with Kitikmeot Inuit “use and enjoyment” of the area.
The Nunavut Impact Review Board’s 2021-22 Jericho monitoring report said any potential environmental damage that could be caused by waste rock leaching into the watershed is unknown.
The Inuit organization wants $3.5 million in damages and for Dyno to declare it is responsible for cleanup.
Dyno Nobel says the federal government had $8.3 million in securities as of December 2013 from Tahera and Shear to fund remediation.
“The overall site plan for the closure managed by [Indigenous Affairs] expressly includes the explosives mixing plant and equipment,” Dyno said in its statement of defence.
As part of its defence, Dyno sought to bring in the federal government as a third party in the lawsuit, so it can face arguments that it is indeed the Crown’s responsibility to clean up the plant. Shear is also named as a third party.
The federal government argued the third-party claim should be set aside. Justice Susan Cooper heard arguments on Oct. 17 in Iqaluit.
She sided with Dyno in a decision dated Jan. 11.
Even if it were clear that Dyno is the owner of the explosives plant, Cooper asked in her decision, would it also be clear that Dyno is also solely liable for restoration of the site “given that some of the contamination may have come from and may continue to come from adjacent land?”
“In my view, it is not,” she wrote.
Cooper acknowledged the complicated regulatory process and said Dyno’s move to bring in the federal government involves “novel areas of the law.”
“The law must be permitted to develop and respond to evolving social conditions and expectations,” she said.
Dyno Nobel Inc. declined comment for this story. The Kitikmeot Inuit Association did not respond to a request for comment.
Nunatsiaq News did not receive a response from Indigenous Affairs by press time.
Hope no explosives were abandoned in that place.
One way or another, someone will need to clean up the site, maybe they all should chip in and cover the costs, after all they all benefitted from the mine. My question is why does KIA think they deserve a 3.5 million dollar handout? They would have received countless millions over the years the mine was open. All these Inuit Associations are always looking for handouts for nothing, they don’t appear to being doing much for their people but they are always the first ones with their hand out.