The Ekati Diamond Mine’s owning company has sought protection from creditors, citing financial struggles due to a significant drop in diamond prices. This drop, exceeding 70% in a year, has put at risk numerous jobs, substantial payments committed to Indigenous communities, and the mine’s long-term viability.
Arctic Canadian Diamond Company, the operator of the Ekati Diamond Mine in the Northwest Territories and a subsidiary of Burgundy Diamond Mines, filed legal documents in the Supreme Court of British Columbia to secure protection from creditors. The court granted this protection until at least May 11, shielding the company from legal actions by creditors seeking assets.
Since its opening in 1998, Ekati’s workforce has dwindled from around 700 employees to about 340 by March 31, with a significant portion being Indigenous and northern residents. Despite reaching a milestone of extracting 100 million carats of diamonds last year, the company faced financial strains, leading to a federal loan of $175 million to sustain operations and safeguard jobs.
Government officials, including N.W.T Industry, Tourism, and Investment Minister Caitlin Cleveland, expressed concerns over the situation. They emphasized the importance of supporting affected workers and communities during this challenging period. Union representatives and local politicians echoed these sentiments, underscoring the impact on workers’ livelihoods and the need for sustained assistance.
Court documents revealed the company’s financial distress, with total liabilities amounting to approximately $655 million. Arctic Canadian Diamond Company’s liabilities related to Ekati constitute a substantial portion of this sum. The company faces challenges in meeting its financial obligations necessary for ongoing operations, including payments to employees, contractors, and suppliers.
Various global factors, such as declining diamond prices, lab-grown alternatives, reduced demand from China, and tariff-related issues, have contributed to the company’s current predicament. Diamond prices plummeted from around $125 per carat in 2024 to about $33 per carat by December 2025, representing a significant decline of 74%. These factors, along with geopolitical tensions and trade dynamics, have impacted the company’s revenue, with diamond sales dropping from over $600 million in 2024 to approximately $253 million the following year.