The company that owns Ekati Diamond Mine has sought creditor protection due to a significant drop in diamond prices, leading to financial distress. This move puts multiple jobs and promised payments to Indigenous communities at risk. The Arctic Canadian Diamond Company, which operates the mine in the Northwest Territories, filed for legal protection in the Supreme Court of British Columbia to shield itself from creditors until at least May 11.
Ekati Diamond Mine, in operation since 1998, had around 700 employees in 2024, with a significant portion being Indigenous and northern residents. However, the workforce had dwindled to approximately 340 employees by March 31. The company had received a substantial loan of $175 million from the federal government to support ongoing operations and protect jobs.
The court documents reveal that the company is facing financial challenges despite the government loan. It owed significant amounts to private lenders and trade creditors, with total debts amounting to approximately $655 million. Additionally, future costs, including estimated cleanup expenses of around $428 million upon mine closure, further compound the financial strain.
Global factors such as declining diamond prices, competition from lab-grown alternatives, reduced purchases from China, and tariff impacts have contributed to the company’s financial woes. Diamond prices plummeted from $125 per carat at the end of 2024 to about $33 per carat by December 2025, resulting in a 74% decrease in revenue from diamond sales. The federal government, along with local officials, is closely monitoring the situation and providing support to affected workers and communities during this challenging period.
