YELLOWKNIFE — The impending closure of the insolvent Ekati diamond mine is a “deeply disappointing outcome” for workers, shareholders and communities in the Northwest Territories, said the chief executive of Australia-based Burgundy Diamond Mines.
“Ekati has made an extraordinary contribution to the territory for more than 25 years as a major private-sector employer and through its long-standing relationships with Indigenous communities and local businesses,” Jeremy King said in an announcement posted to the Australian Stock Exchange.
The Supreme Court of British Columbia granted the Canadian arm of Burgundy, Arctic Canadian Diamond Company Ltd., protection from creditors in May. Since then, Burgundy said it reached out to a broad range of potential investors and counterparties.
“Despite an extensive process to identify new investment or a transaction, no viable proposal was received,” King said.
With no fresh investment, lender support and the company’s “ongoing negative cash flow,” Burgundy said it has no way to fund operations at the mine.
The court has appointed PricewaterhouseCoopers to oversee the winding down of the diamond mine.
A receivership order filed Tuesday says PwC has the power to “effect workforce reductions, including layoffs or terminations of the debtors’ employees.”
The territory’s diamond industry has entered its final days and the decline has been accelerated by the growing popularity of lab-grown diamonds and U.S. tariffs.
The Diavik mine owned by Rio Tinto marked its last day of production in March, having reached the end of its productive life, while the Gahcho Kué owned by De Beers and Mountain Province is preparing for its end-of-life in the coming years.
Ekati, Diavik and Gahcho Kué have been major employers in the N.W.T. and it’s been estimated that the industry has accounted 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.
This report by The Canadian Press was first published July 15, 2026.
By Lauren Krugel in Calgary
