Canada’s first diamond mine, Ekati in the Northwest Territories, will shut down following a Supreme Court of British Columbia ruling placing it into receivership this week.
Arctic Canadian Diamond, a subsidiary of Australian-based Burgundy Diamond Mines (ASX: BDM), operated the historic Ekati diamond mine about 300 km northeast of Yellowknife after it bought the asset from Dominion Diamond in 2021. It’s Burgundy’s main asset.
Low global diamond prices compounded with tariffs, competition from synthetic stones, inflationary pressures, and supply chain bottlenecks were challenges too difficult to navigate. The mine entered insolvency protection in May.
In December, the government of Canada provided a $115 million (US$81.9 million) loan through the Large Enterprise Tariff Loan facility to help Ekati continue operations.
Territory takes over
The government of Northwest Territories said it will take responsibility for Ekati as the company enters receivership under PricewaterhouseCoopers, which tends the mine site’s assets and environmental protection. Funds from Burgundy’s reclamation security are to cover closure costs.
The NWT government “will continue to uphold its responsibilities to protect the land, water and public interest.” Minister of Environment and Climate Change Jay Macdonald said in a release.
“Environmental and regulatory obligations remain in place, and we will continue to work through the appropriate legal and regulatory processes to ensure those obligations are managed.”
Ekati’s impending shutdown follows the closure of the nearby Diavik diamond mine in March, which was operated by Rio Tinto (NYSE, LSE, ASX: RIO).
Canadia’s only other diamond mine, Gahcho Kué, owned jointly by Anglo American’s (LSE: AAL) De Beers and Mountain Province Diamonds, is expected to close by 2028. Mountain Province plans to voluntarily delist its shares from the Toronto Stock Exchange on July 17, the CBC reported Thursday.
Be the first to comment on "Canada’s first diamond mine to shut down "