We know Ekati diamond mine is on the brink because its parent company, Arctic Canadian Diamond Company (ACDC), is in financial distress.
The company has filed for insolvency protection in order to try and come up with some sort of plan for the mine’s future, but just how bad is it?
One way to find out is to see who ACDC owes money to and that list was filed by FTI Consulting, the firm looking after ACDC’s case, on Tuesday. A quick look at the amount and you see that there’s a total of around $376 million in secured and unsecured debt.
The secured debtors are in line to receive any money from the proceeds of whatever happens to Ekati and they include the Canadian Enterprise Emergency Funding Corporation in Toronto, which looked after the federal loan the company received. That amount is now at $176 million, which most likely includes some interest. Caterpillar Financial Services, based in Ontario, is also owed $4.5 million, while Alter Domus, an American loan administration firm in Chicago, Illinois, is owed just over $100,000.
While those outfits are guaranteed something, it’s the unsecured debtors who could possibly be on the outside looking in and that list includes a multitude of NWT-based companies.
The largest of those is Kete Whii Procon, based in Ndilo. That’s a firm which works on open pit and underground mining operations and is a joint venture between the Yellowknives Dene First Nation (YKDFN), Tlicho and Lutselk’e Dene First Nation. They’re owed $12.6 million.
Another company owed a lot is Dene Aurora Mining based in Hay River. They could be out nearly $6.7 million, as could Finning Canada in Kam Lake. They’re owed a total of around $4.5 million.
The GNWT is owed a total of around $8.6 million in back fuel and property taxes with another $1.4 million owed to the Mining Recorder’s Office. Det’on Cho Corporation, the business wing of the YKDFN, has multiple outstanding bills: Nahanni Construction is owed close to $2 million, while Det’on Cho Landtran Transport is still out $778,000.
Several other Yellowknife-based firms are owed at least $1 million and they include 3320588 Canada Ltd., which is the company that deals with impact and benefits agreement money for the YKDFN; Dene Dyno Nobel, an explosive firm; ERM Consultants Ltd.; Hydrocarbon Services Ltd., and Westcan Bulk Transport.
There are non-Canadian firms on the list as well, including Worldwide Diamond Sorting in India, which is owed close to $1 million, as well as Netherlands-based IHC Mining, which is on the hook for nearly $2 million.
ACDC has until this coming Monday, May 11, to come up with a plan for the mine’s future.