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 has put hundreds of jobs and millions of dollars in payments to Indigenous communities at risk. The company, Arctic Canadian Diamond Company, based in Calgary and a subsidiary of Burgundy Diamond Mines, filed for legal protection in the Supreme Court of British Columbia recently. This protection, granted by the court until May 11, shields the company temporarily from creditors.
Ekati Diamond Mine, established in 1998, had a workforce of around 700 employees in 2024, with a significant percentage being Indigenous and northern residents. However, by March 31, this number had dropped to approximately 340 employees. The company had achieved a milestone of mining 100 million carats of diamonds over its 26-year lifespan. To ensure operational continuity and job preservation, the company received a $175 million loan from the federal government.
The Northwest Territories government is closely monitoring the situation and advocating for the welfare of northern workers and communities during this process. Various stakeholders, including government officials and union representatives, have expressed concerns over the impact on workers and the community. The company’s financial distress is evident from court documents, with liabilities totaling around $655 million, with a significant portion related to Ekati operations. Failure to stabilize operations could jeopardize the mine’s future.
Global factors such as declining diamond prices, competition from lab-grown alternatives, reduced demand from China, and tariff-related impacts have contributed to the company’s financial challenges. Diamond prices plummeted from $125 per carat at the end of 2024 to around $33 by December 2025, a staggering 74% decrease. The company’s diamond sales dropped from over $600 million in 2024 to about $253 million the following year. The federal government plans to address the situation and provide support to the affected employees at Ekati Diamond Mine.