BHP Billiton Diamonds Inc (BHPB) has been mining kimberlite from several pipes at the Ekati Diamond MineTM located 300 km north of Yellowknife since 1997. Processing of kimberlite produces coarse kimberlite rejects (CKR, 0.5 to 8 mm) and fine tailings (less than 0.5 mm). The CKR are trucked to the Coarse Kimberlite Reject Storage Area (CKRSA) located within the drainage area of the tailings impoundment (Long Lake Containment Facility - LLCF). The coarse rejects are wet when dumped and are expected to freeze as a result of annual average site temperatures of about -10C. Seasonal thawing occurs along the exposed edges of the pile. Monitoring of the CKR indicates they have consistently low sulfur concentrations (0.4 per cent) accompanied by high acid neutralisation potentials (78 to 337 kg CaCO3/t). Carbonate concentrations vary from 0.9 per cent to 3.4 per cent. The CKR are therefore not potentially acid generating based on conventional laboratory testing. Monitoring of stagnant pools on the tundra downgradient of the CKRSA has shown that water originating from the pile resembles acid rock drainage (ARD). Water pHs can be less than 4, and sulfate concentrations are typically in the thousands of milligrams per litre. Conventional flowing toe seeps are pH neutral but also have elevated sulfate concentrations. Investigations conducted in the summer of 2002 revealed no evidence of in situ acid generation. Pore water chemistry is probably controlled by oxidation of fine-grained pyrite, neutralisation of acidity by calcium and magnesium carbonates and silicates, and freeze concentration of pore water. The acidity observed in tundra pools downgradient of the CKRSA appears to be a result of leaching and mobilisation of iron under reducing conditions at the CKR-soil contact. Downstream of the CKRSA, reduced iron oxidises and is hydrolysed on contact with the atmosphere causing pH depression. BHPB is applying the findings of this study by constructing facilities containing kimberlite on granite pads. These in turn are placed on frozen ground so that the foundations remain frozen and limits contact of wastes with the acidic soils.