The Government of the Northwest Territories (GNWT) has announced the extension of property tax relief for operating diamond mines into the 2026–27 fiscal year.
The decision follows ongoing global market instability and trade disruptions, with the aim of supporting employment and economic continuity in northern communities. The relief is expected to reduce projected property tax revenue from diamond mines by approximately $8.8 million, or 45 per cent, compared with what would have been collected without the measure.
Support for Sector Stability
Originally introduced in 2025, the tax relief forms part of a series of measures aimed at stabilising the diamond sector amid elevated operating costs and reduced demand. Diamond mining remains the largest private-sector contributor to the Northwest Territories’ economy, and all three of Canada’s diamond mines operate within the territory.
The GNWT has stated that mine operators are expected to direct the benefits of the relief towards sustaining local employment, meeting obligations to contractors and Indigenous business partners, and ensuring safe operations.
“This extension is about maintaining stability today while planning responsibly for what comes next,” said Caitlin Cleveland, Minister of Industry, Tourism and Investment. “We are working with Indigenous governments, industry, and the federal government to support current operations and employment while planning for future economic changes.”
Coordinated Government Action
The GNWT’s announcement follows a federal loan of $115 million to the Ekati Diamond Mine through the Large Enterprise Tariff Loan facility. The combined actions are part of broader efforts to maintain employment and operational continuity during current market conditions.
“The diamond sector remains central to the Northwest Territories’ economy. Extending targeted property tax relief is intended to support economic stability during ongoing market uncertainty,” said Caroline Wawzonek, Minister of Finance.
Industry Implications
The relief applies to all operating diamond mines in the Northwest Territories and will remain in place for the 2026–27 tax year only. Property taxes from diamond mines are paid directly to the GNWT, rather than to local municipalities.
The extension forms part of the government’s broader strategy to address near-term challenges in the diamond mining sector while pursuing longer-term economic diversification. For jewellers, consistent production from Canada’s northern mines remains a key factor as the global diamond supply landscape evolves.
