The mine that launched Canada’s diamond boom is nearing the end of its life. The Supreme Court of British Columbia has placed the Ekati diamond mine into receivership, marking another major setback for the country’s diamond industry. The Government of the Northwest Territories will oversee the site’s closure and environmental reclamation to ensure it is safely decommissioned and restored.
Ekati is located approximately 300 kilometers northeast of Yellowknife. Since 2021, it has been owned by Arctic Canadian Diamond Company, a subsidiary of Australia’s Burgundy Diamond Mines, which acquired the operation from Dominion Diamond. Even a CAD 115 million government loan provided by Ottawa in December 2025 under its Large Enterprise Emergency Funding Facility failed to stabilize the business.
In May, the British Columbia–registered company filed for creditor protection. This week, the court appointed PricewaterhouseCoopers (PwC) as receiver. The territorial government has committed to financing the mine’s closure and reclamation using the environmental security deposit previously posted by the company.
Jay Macdonald, Minister of Environment and Climate Change for the Northwest Territories, said the government would continue to fulfill its responsibility to protect the land, water, and public interest. All environmental and regulatory obligations remain in force, and authorities will work through the legal process to ensure compliance.
Ekati’s closure is part of the broader decline of Canada’s diamond mining industry. In March, the neighboring Diavik mine, operated by Rio Tinto, ceased production. The country’s only remaining diamond operation, Gahcho Kué, jointly owned by De Beers and Mountain Province Diamonds, is expected to operate only until 2028. Just days ago, Mountain Province also announced plans to voluntarily delist its shares from the Toronto Stock Exchange, signaling continuing financial difficulties.
Ekati ultimately fell victim to a combination of adverse market conditions: weak global diamond prices, U.S. tariffs, growing competition from laboratory-grown diamonds, inflationary pressures, and supply chain disruptions. Together, these challenges proved overwhelming even for one of the industry’s most iconic operations.
The closure of Ekati marks the fading of Canada’s diamond era. The three mines that sustained northern communities and contributed significantly to the country’s economy for decades are disappearing one after another, leaving behind the responsibility of restoring the land they once transformed.
Source: MINING.COM
Image: Arctic Canadian
