The company that owns Ekati Diamond Mine has sought creditor protection due to a significant drop in diamond prices, declining by over 70% in a year. This move, reported by Cabin Radio, poses a threat to numerous jobs and substantial payments to Indigenous communities, as well as casting uncertainty on the mine’s future.
Arctic Canadian Diamond Company, based in Calgary and operating Ekati Diamond Mine in the Northwest Territories, filed a set of documents in the Supreme Court of British Columbia. The court granted the company legal protection until at least May 11, shielding it temporarily from creditors seeking assets or initiating lawsuits.
Ekati Diamond Mine, established in 1998, had around 700 employees in 2024, with about 28% being northern residents and 60% Indigenous. However, the workforce dwindled to approximately 340 by March 31. The company had achieved a significant milestone of extracting 100 million carats of diamonds over its 26-year existence.
To ensure operational continuity and job preservation, the company received a $175 million loan from the federal government. N.W.T Industry, Tourism, and Investment Minister Caitlin Cleveland stated that the government is closely monitoring the court proceedings and will advocate for the interests of northern workers and communities.
The financial documents reveal that despite the federal loan, the Burgundy Group, the parent company, faces financial distress with total liabilities of about $655 million. Arctic Canadian Diamond Company’s liabilities, primarily linked to Ekati operations, constitute a large portion of this amount. The company’s liabilities include debts to private lenders, trade creditors, and the Canada Enterprise Emergency Funding Corporation.
A significant drop in diamond prices, attributed to various global factors such as lab-grown alternatives, reduced purchases from China, and tariff impacts, led to the company’s financial challenges. The documents highlight that diamond prices plummeted from $125 per carat in 2024 to about $33 in December 2025, a decline of approximately 74%.
The company’s diamond sales dropped from over $600 million in 2024 to about $253 million the following year. The federal government provided emergency funding to support Ekati, with conditions attached to additional funding contingent on the company raising new equity investment.
Union of Northern Workers president Gayla Thunstrom expressed concern for members during this stressful time, emphasizing the impact on workers’ livelihoods. N.W.T. MP Rebecca Alty stated that the government’s priority is to support Ekati employees amid the challenging circumstances.