The union representing workers at Ekati Diamond Mine is scheduled to hold a meeting on Thursday with the mine’s owner, Burgundy Diamond Mines, and government officials from the Northwest Territories to discuss Burgundy’s request for federal tariff relief funds. Burgundy, which currently employs around 1,100 workers and contractors at the Ekati site, announced that it has been deemed “eligible” for tariff relief funding of up to $150 million. However, this approval does not guarantee that the company will receive the funds. The meeting comes after Burgundy requested a trading halt on the Australian Securities Exchange for the second time in three months. The first halt was followed by significant layoffs.
Burgundy has cited the need for federal tariff-relief funds to support its operations due to the impact of high tariffs imposed on diamond manufacturing in India by U.S. President Donald Trump. With India being a major player in global diamond manufacturing, the 50% U.S. tariff on Indian imports has disrupted the diamond supply chain and added to the challenges faced by companies like Burgundy, especially amidst a global decline in rough diamond values.
Independent diamond analyst Paul Zimnisky highlighted the significant impact of the U.S. tariffs on Indian imports, noting that many manufacturers in India are reluctant to purchase rough diamonds due to uncertainties surrounding the tariffs. This situation has intensified the pressures on companies like Burgundy, particularly following the challenges posed by the pandemic.
In response to the crisis facing the diamond industry, the Northwest Territories government had previously announced a reduction in property taxes for mines in the territory in April 2025. Premier R.J. Simpson has also engaged with U.S. Ambassador Pete Hoekstra to address the effects of tariffs on diamond prices and costs.
