The operator of Ekati Diamond Mine, Arctic Canadian Diamond Company, has sought creditor protection due to a significant drop in diamond prices, plummeting over 70% in a year. This move jeopardizes jobs, payments to Indigenous communities, and the mine’s long-term viability.
Arctic Canadian Diamond Company, a subsidiary of Burgundy Diamond Mines, based in Calgary, filed for legal protection in the Supreme Court of British Columbia, granting temporary relief from creditors until at least May 11. The mine, operational since 1998, employed around 700 workers in 2024, with a notable percentage of Indigenous and northern residents. However, the current workforce has decreased to approximately 340 as of March 31.
Despite receiving a $175-million federal loan to sustain operations and preserve jobs, the company faces financial distress. Court documents reveal liabilities totaling around $655 million, with a significant portion attributed to Arctic Canadian Diamond’s obligations related to Ekati.
The company owes approximately $343 million, including debts to private lenders and trade creditors, along with funds owed to the Canada Enterprise Emergency Funding Corporation. The filings also highlight an estimated $428 million required for future reclamation obligations at the mine, partly covered by existing bonds, trust funds, and cash collateral.
Global factors, such as declining diamond prices, emergence of lab-grown alternatives, reduced Chinese demand, and tariff impacts, are cited as reasons for the financial challenges. Diamond prices fell drastically from $125 per carat in 2024 to around $33 per carat by December 2025, leading to a sharp decline in sales revenue from over $600 million in 2024 to about $253 million the following year.
N.W.T Industry, Tourism, and Investment Minister Caitlin Cleveland expressed government monitoring and support for affected workers and communities during this uncertain period. The Union of Northern Workers voiced concerns over recurring challenges faced by northern workers and communities, emphasizing the impact on livelihoods.
MP Rebecca Alty highlighted the government’s focus on supporting Ekati’s employees amid the ongoing situation. The federal government’s involvement and response to the crisis are expected to be further detailed in the upcoming days, as efforts continue to navigate the financial difficulties faced by the diamond mine.