Canada’s first diamond mine to shut down  

Canada’s first diamond mine, Ekati in the Northwest Territories, will shut down following a Supreme Court of British Columbia ruling placed it into receivership this week.  

Arctic Canadian Diamond Company, a subsidiary of Australian-based Burgundy Diamond Mines operated the historic Ekati diamond mine approximately 300 km northeast of Yellowknife after it bought the asset from Dominion Diamond in 2021.  

Low global diamond prices compounded with tariffs, competition from synthetic stones, inflationary pressures, and supply chain bottlenecks were challenges too difficult to navigate.  

In December 2025, the government of Canada provided a C$115 million ($81.9 million) loan through the Large Enterprise Tariff Loan facility to help Ekati continue operations.  

But Arctic Canadian Diamond Company, incorporated in British Columbia,  filed for insolvency protection under the Creditors Arrangement Act (CCAA) in May.  

Northwest Territories gov’t assumes responsibility  

The government of Northwest Territories (GNWT) said it will take responsibility for Ekati as the company enters receivership.  

The GNWT made an application to appoint a Receiver to assume responsibility of the mine site’s assets and activities and said it will advance funds to the Receiver, PricewaterhouseCoopers, using the companies’ reclamation security to fund the reclamation and closure of the site. 

The Receiver, GNWT said, is on-site at Ekati and is overseeing activities to ensure site stability, safety and environmental protection. 

“The GNWT will continue to uphold its responsibilities to protect the land, water and public interest.” Minister of Environment and Climate Change Jay Macdonald said in a press release.  

“Environmental and regulatory obligations remain in place, and we will continue to work through the appropriate legal and regulatory processes to ensure those obligations are managed.” 

Ekati’s impending shutdown follows the closure of the nearby Diavik diamond mine in March, which was operated by Rio Tinto.  

Canadia’s only other diamond mine, Gahcho Kué,  owned by De Beers, and Mountain Province, is expected to close by 2028. Mountain Province plans to voluntarily delist its shares from the Toronto Stock Exchange, signaling possible financial troubles, the CBC reported Thursday.