Indigenous leaders and workers in the northern region are grappling with the recent job cuts at Ekati Diamond Mine in the Northwest Territories, as analysts point to broader challenges within the diamond industry.
Dene National Chief George Mackenzie expressed concerns about the significant impact of these layoffs on Tłı̨chǫ communities, highlighting the long-standing service of some employees who are now facing financial uncertainties. The owner of Ekati, Burgundy Diamond Mines, announced the suspension of open pit operations at the mine, resulting in layoffs for several hundred employees and contractors, while continuing operations at the Misery underground site.
Chief Ernest Betsina of the Yellowknives Dene First Nation voiced surprise and disappointment over the workforce reductions, emphasizing the need for fair treatment based on seniority for affected members. The Union of Northern Workers (UNW) reported that approximately 160 of its members were laid off, with assurances that Impact Benefit Agreements are being considered in the selection process to support the local workforce.
Johnny McKinney, the regional vice president of the UNW, acknowledged the range of emotions among union members, from confusion to disappointment. He outlined the compensation and recall procedures for laid-off workers, noting that Burgundy intends to recall workers once diamond prices improve.
Industry experts, like diamond analyst Paul Zimnisky, attributed the downsizing at Ekati to a prolonged downturn in the diamond market, weakened demand in key markets like China, and competition from lab-grown diamonds. Zimnisky highlighted the challenges of maintaining profitability as mines age, pointing out the complexities of mining economics.
Karen Costello, from the Northwest Territories and Nunavut Chamber of Mines, recognized the pressures facing diamond miners but expressed optimism about Arctic Blue Diamond’s recent acquisition, signaling potential opportunities for the industry. Burgundy’s plans for the development of the Fox underground as a high-value deposit indicate a strategic shift amid the changing landscape of the diamond sector.