Ekati Mine Faces Possible Water License Suspension

(IDEX Online) - Canada's Ekati diamond mine could be forced to halt all activity if its water license is suspended after a regulator accused it of dumping unauthorized mining material.

The Wekeezhii Land and Water Board said its court-appointed receiver PricewaterhouseCoopers Inc. continued disposing of the material at the Long Lake containment facility despite being directed not to do so. The board said the alleged action meant PwC was not complying with the terms of the mine's water license.

A water license suspension would effectively halt all activity at the Ekati site, according to the board.

The material, known as emulsion, is a liquid commonly used for blasting at mine sites. Long Lake was Ekati's main containment facility for storing processed kimberlite after diamonds were extracted.

In an urgent letter to Northwest Territories environment minister Jay Macdonald, the board said it had given PwC "clear direction ... that disposal of emulsion into the Long Lake containment facility was not authorized."

The board said it learned last week that PwC continued disposing of the material after being told to stop. According to the board, PwC said a government inspector had authorized it to continue and that the company believed the practice was acceptable because Ekati's previous owner had been doing the same since June 2025.

The board said it was "concerning" that PwC had ignored its directives. It said the alleged actions meant PwC was not complying with the terms of the mine's water license and that it could consider suspending the license for activities at Ekati.

The board also said it could call a public hearing into the matter.

PwC was appointed receiver of the mine site earlier this year after no buyers stepped forward to purchase the diamond mine. Ekati's parent company, Arctic Canadian Diamond, a subsidiary of Burgundy, filed for creditor protection in May.

As court-appointed receiver, PwC is responsible for maintaining basic functions at the Ekati site and ensuring its stability, safety and environmental protection.

The board is seeking a meeting with environment department officials this week to discuss the issue. It has also asked officials to confirm how much of the material has been disposed of since last year and whether a government inspector authorized PwC to carry out the dumping.

In a written statement to CBC News, Macdonald said meetings involving the government, the board and PwC were being organized "to discuss the concerns raised and how they will be addressed moving forward."

He said that until those meetings take place it would be premature for him to comment further.

Pic shows Ekati mine.