Arctic Canadian Diamond Company, the operator of Ekati Diamond Mine in the Northwest Territories, has sought creditor protection due to a significant drop in diamond prices, plummeting by over 70% in a year. This move puts numerous jobs at risk and millions in payments to Indigenous communities in jeopardy, casting doubt on the mine’s future.
The company, a subsidiary of Burgundy Diamond Mines, filed for legal protection in the Supreme Court of British Columbia, granting temporary relief until at least May 11 from creditor actions. Ekati Diamond Mine, operational since 1998, employed around 700 workers in 2024, with a substantial portion being Indigenous and northern residents. However, the workforce had dwindled to approximately 340 by March 31.
Despite receiving a $175 million federal loan to sustain operations and safeguard jobs, the company faces financial distress, as evidenced by liabilities totaling about $655 million. The court filings reveal Arctic Canadian Diamond Company’s liabilities reaching around $343 million, including significant amounts owed to lenders, trade creditors, and federal agencies.
The company attributed its financial struggles to global factors affecting diamond prices, such as the rise of lab-grown alternatives, reduced purchases from China, and tariff impacts. Diamond prices plummeted from $125 per carat in 2024 to $33 by December 2025, resulting in a sharp decline in sales revenue.
Amidst these challenges, the Northwest Territories government intervened by making payments to support Ekati’s operations. Stakeholders, including government officials and union representatives, expressed concerns over the potential repercussions on workers and local communities. The situation remains fluid as the company navigates through its financial difficulties, with the government closely monitoring developments to protect the interests of all involved parties.