$39M paid to companies that left Tundra mine cleanup, says gov't

The companies that didn't finish the cleanup work at the contaminated Tundra mine site in the Northwest Territories were paid $39 million, according to the federal government.

That's three quarters of the value of the contract, which grew to $52 million.

The two companies, Aboriginal Engineering and Tlicho Engineering and Environmental Services, are both owned by the Tlicho Investment Corporation, which is in turn owned by the Tlicho Government. The corporation has said Tlicho Engineering and Environmental Services lost $13 million cleaning up the former gold mine, located 247 kilometres northeast of Yellowknife.

The companies informed the federal government last August that they were "unable to complete the contract."

George Mackenzie, a former president of the Tlicho Investment Corporation whose tenure covered the early years of the companies' work at Tundra, says the companies had been grooming themselves to take on bigger projects like the remediation of Giant Mine, a $900-million project.

But he says their failure at Tundra will greatly hurt their chances of getting future remediation work.

"We were definitely eyeing the tiger, you might say. The dream was [to] become the champion of cleanup in our own backyard," said Mackenzie.

"The chances are very slim now. I think it's going to take a lot of work."

Aboriginal Affairs and Northern Development Canada says the remaining work at Tundra includes "water treatment, site support, earthworks, and various mobilization activities."

A contract for that work will be posted to tender by Public Works and Government Services Canada.