The company that owns Ekati Diamond Mine has sought creditor protection due to a significant drop in diamond prices, plummeting over 70% in a year. This move puts numerous jobs and financial commitments to Indigenous communities at risk, casting uncertainty over the mine’s future.
Arctic Canadian Diamond Company, the operator of Ekati Diamond Mine in the Northwest Territories and a subsidiary of Burgundy Diamond Mines, filed for legal protection in the Supreme Court of British Columbia. This protection shields the company from creditors’ actions until at least May 11. The mine, which began operations in 1998, employed around 700 workers in 2024, with a notable percentage being Indigenous. However, the workforce dwindled to approximately 340 by March 31.
Despite receiving a $175 million loan from the federal government to sustain operations and safeguard jobs, the company faces financial distress. Court documents reveal that the Burgundy Group has total liabilities of about $655 million, with a significant portion tied to Arctic Canadian Diamond’s obligations at Ekati.
The company’s financial challenges stem from a sharp decline in diamond prices, attributed to global factors such as the rise of lab-grown alternatives, reduced Chinese purchases, and tariff impacts. Diamond prices spiraled from $125 per carat in late 2024 to around $33 by December 2025, a staggering 74% decrease. This downturn led to a substantial drop in diamond sales, from over $600 million in 2024 to about $253 million the following year.
Government officials and union representatives express concerns over the situation, emphasizing the need to support affected workers and communities. The Northwest Territories government made efforts to assist Ekati, including a $2 million payment to help sustain the mine. Despite these measures, the company faces challenges in meeting its financial obligations, risking the continuity of operations at the Ekati mine.
