The owner of the troubled Ekati Diamond Mine in the Northwest Territories has filed for insolvency protection as it continues to face economic and geopolitical headwinds.
Australia-based Burgundy Diamond Mines Ltd. said the Supreme Court of British Columbia has granted its Canadian subsidiary, Arctic Canadian Diamond Co. Ltd., protection under the Company Creditors Arrangement Act, putting its creditors temporarily at bay while it restructures or finds a different path forward.
“The CCAA filing was necessitated by a number of factors, including the ongoing adverse impact of U.S. tariffs on the natural diamond industry, sustained challenging demand conditions being experienced by all natural rough diamond producers globally and increasing costs, including as a result of recent significant increases in fuel prices due to the conflict in the Middle East,” the company said in a news release Friday.
Burgundy has a plan that could see Ekati operate until as long as 2040, but it’s been under financial strain. It asked the Australian Stock Exchange last September to suspend its stock trading until it can secure new funding and it undertook major staff cuts last year.
Late last year, Ottawa extended a $115-million Large Enterprise Tariff Loan to ACDC so Ekati can continue operating.
Burgundy said it plans to use the CCAA process to engage in discussions with its lenders, creditors and other stakeholders as well as “evaluate strategic alternatives to restructure ACDC financially and operationally.”
It called the CCAA filing “the most prudent course of action” given what it’s up against.
“Burgundy has been working consistently to cut costs and recast its business plan to focus on producing the highest quality goods within its asset base. Despite these efforts, and after careful consideration of all other available alternatives, Burgundy’s board of directors determined that it is in the best interests of ACDC and all its stakeholders to seek protection under the CCAA,” it said.
Burgundy intends to continue mining at Ekati during the insolvency process, with Arctic Canadian Diamond Co. management continuing to oversee day-to-day operations.
“Burgundy continues to believe in the long-term viability of the Ekati Diamond Mine and intends to emerge stronger, better and able to deliver value to all stakeholders,” it said.
The Northwest Territories’ diamond industry is in its waning days. The Diavik mine owned by Rio Tinto marked its last day of production in March, having reached the end of its productive life. The Gahcho Kué owned by De Beers and Mountain Province is preparing for its end-of-life in the coming years.
The growing popularity of lab-grown diamonds has caused prices for raw diamonds to plummet in recent years. U.S. tariffs on India, where most raw diamonds are cut and polished, have also hurt miners.
The trio of diamond mines have been major employers in the N.W.T. and it’s been estimated that the industry accounts for about one-fifth of its gross domestic product.
Territorial leaders have been setting their sights on critical minerals as a potential longer-term economic driver. That would mean more, but smaller, mines than the diamond mines that have long anchored the territorial economy. Energy and road infrastructure projects in the territory have also been referred to the new federal major projects office for fast-tracked approvals.
N.W.T. Industry Minister Caitlin Cleveland said Monday she understands the news around Ekati creates uncertainty.
“Our government is closely monitoring the court proceedings and will continue to advocate for the interests of northern workers and communities as this process unfolds.”
This report by The Canadian Press was first published May 4, 2026.
Lauren Krugel, The Canadian Press
