The Government of the Northwest Territories (GNWT) has announced a series of targeted relief measures to stabilise its diamond mining sector, a key contributor to the territory’s economy. The initiative follows mounting financial pressures on the region’s three major diamond mines — Ekati, Gahcho Kué, and Diavik — operated respectively by Burgundy Diamonds, Mountain Province and De Beers (joint venture), and Rio Tinto.
Sector Under Financial Strain
The diamond industry in the Northwest Territories accounts for approximately 20% of the territory’s gross domestic product (GDP) and employs more than 1,000 Northerners. However, a combination of declining global diamond prices, persistent inflation, supply chain disruptions, and the emerging impact of tariffs has resulted in considerable financial losses across the sector.
Recent financial disclosures underline the sector’s difficulties: Mountain Province, which co-owns Gahcho Kué with De Beers, reported a net loss of $56.4 million for 2024, while Burgundy Diamonds, owner of Ekati, recorded a $94.7 million loss. Rio Tinto’s Diavik mine posted an underlying loss of $127 million for the same period.
Industry leaders and Indigenous development corporations raised concerns about potential disruptions to employment and local business contracting opportunities if no intervention was made. Since the beginning of diamond mining in the region, the industry has spent more than $9.1 billion with Indigenous businesses and beneficiaries.
Details of the Relief Measures
Following discussions with mine operators, Indigenous governments, and federal representatives, the GNWT outlined a relief package intended to support cash flow and reduce operational expenses. Key components include:
- Doubling of Local Diamond Valuations: The government will double the number of local rough diamond valuations in 2025 and 2026, covering the associated costs to accelerate the time it takes for diamonds to reach market.
- Temporary Reduction in Mineral Property Tax: The general mill rate for Class 4 – Minerals will be temporarily reduced in 2025, delivering an estimated $11.2 million in property tax relief across the three mines.
- Release of Carbon Tax Contributions: Remaining balances from the Large Emitter Greenhouse Gas (GHG) Reducing Investment Fund will be released. Ekati and Gahcho Kué mines will benefit directly, while Diavik had previously accessed funds from the initiative to support solar energy projects.
- Ongoing Collaboration with Indigenous Groups: The government will continue to engage Indigenous governments and development corporations, alongside federal partners, to explore further infrastructure and transition support.
Government Statements
Caroline Wawzonek, Minister of Finance for the Northwest Territories, emphasised the importance of the measures, stating:
“This is about protecting our economy from sudden shock. These targeted, short-term supports are not about corporate profits—they’re about maintaining stability for the workers, families, communities, and Indigenous governments that rely on [the diamond] sector.”
Caitlin Cleveland, Minister of Industry, Tourism and Investment, highlighted the broader aim of the intervention:
“It’s about preventing disruption and creating the space to plan for what comes next—together,” she said, describing the measures as a means to “bridge that gap” until new mining projects potentially come online.
