Arctic Canadian Diamond Company, the operator of Ekati Diamond Mine in the Northwest Territories, has sought creditor protection due to financial difficulties caused by a significant drop in diamond prices. The company’s parent company, Burgundy Diamond Mines, filed for legal protection in the Supreme Court of British Columbia last week to shield itself from creditors until at least May 11.
The mine, which opened in 1998 and employed around 700 workers in 2024, has seen its workforce reduced to about 340 employees by March 31. Despite reaching a milestone of extracting 100 million carats of diamonds last year, the company faced financial strain, leading to the federal government providing a $175 million loan to support operations and protect jobs.
N.W.T Industry, Tourism, and Investment Minister Caitlin Cleveland expressed concern over the situation, emphasizing the government’s commitment to safeguarding the interests of northern workers and communities. However, Yellowknife Centre MLA Robert Hawkins highlighted the uncertainties faced by workers and communities due to the mine’s financial challenges.
Union of Northern Workers president Gayla Thunstrom voiced the stress felt by union members and criticized the recurring instability faced by northern workers under different owners. N.W.T. MP Rebecca Alty assured support for Ekati employees during this difficult period.
Court documents revealed that Arctic Canadian Diamond Company is struggling financially, with total liabilities amounting to about $655 million. The company’s inability to stabilize operations could jeopardize its ability to meet financial obligations, including payments to employees, contractors, and suppliers.
Global factors such as declining diamond prices, competition from lab-grown alternatives, reduced demand from China, and tariff-related impacts were cited as reasons for the company’s financial woes. Diamond prices plummeted from $125 per carat in 2024 to around $33 by December 2025, leading to a significant decline in sales revenue.
The company is facing challenges in raising necessary funds to sustain its operations, highlighting the uncertainties surrounding the future of Ekati Diamond Mine and the livelihoods of its workforce.
