The company that owns Ekati Diamond Mine has sought creditor protection due to a significant drop in diamond prices, leading to financial challenges. The filings place numerous jobs and payments 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 measure shields the company from creditor actions temporarily until at least May 11.
Established in 1998, Ekati Diamond Mine previously employed around 700 individuals in 2024, with a substantial proportion being Indigenous and northern residents. However, the workforce dwindled to approximately 340 by March 31. Despite achieving a significant milestone of extracting 100 million carats of diamonds over its 26-year existence, the company faced financial strains.
To support ongoing operations and safeguard jobs, the federal government provided a $175 million loan to the company. Officials from the N.W.T Industry, Tourism, and Investment Ministry are closely monitoring the situation to advocate for the welfare of affected workers and communities.
While the court documents reveal the company’s financial distress despite the government loan, it also discloses liabilities totaling approximately $655 million for the Burgundy Group, with a substantial portion linked to Arctic Canadian Diamond’s obligations related to Ekati. Failure to stabilize operations could jeopardize the mine’s future and impact stakeholders.
Various global factors, including plummeting diamond prices, lab-grown alternatives, reduced purchases from China, and tariff impacts, have contributed to the company’s financial challenges. Diamond prices dropped significantly from $125 per carat in 2024 to around $33 per carat by December 2025, causing a 74% decline in value.
The company’s diamond sales plummeted from over $600 million in 2024 to about $253 million the following year. The government and union representatives express concern and readiness to support affected workers during this challenging period, emphasizing the significance of safeguarding livelihoods amidst the company’s financial turmoil.
