Ekati Diamond Mine Closure Threatens Jobs, Leaves Northwest Territories with One Operational Mine

The Ekati diamond mine, a significant economic anchor in Canada's Northwest Territories, is set to close early after its owner, Australia-based Burgundy Diamond Mines Ltd., could not secure a buyer for its Canadian subsidiary and depleted its operating funds. This premature closure follows the March cessation of operations at Rio Tinto's Diavik mine, which had reached the end of its planned lifespan. Consequently, the Gahcho Kué mine, owned by De Beers and Mountain Province, stands as the sole remaining diamond mine in the Northwest Territories, with its own eventual wind-down anticipated in the coming years. Together, these three mines previously constituted an estimated 20 percent of the territory's gross domestic product and were a crucial source of employment for local Indigenous communities. Robert Jenkins, deputy minister in the territory’s environment ministry, acknowledged the economic impact but highlighted ongoing opportunities in resource development, infrastructure, defense investments, and housing construction. The Supreme Court of British Columbia ordered Burgundy's Canadian arm, Arctic Canadian Diamond Company Ltd., into receivership, appointing PricewaterhouseCoopers (PwC) Inc. as receiver. PwC is now on-site to ensure site stability, safety, and environmental protection during an orderly winding down process. The court had previously granted the company protection from creditors in May to explore options for keeping Ekati operational, but these efforts ultimately failed to identify a viable solution. Approximately 360 people were employed at the Ekati mine, and a reduced workforce is expected to remain for care and maintenance and reclamation activities.

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While the closure of a major mine is significant for the N.W.T. economy, the territory continues to have opportunities in resource development, infrastructure, defence investments, housing construction and other sectors.