Northwest Territories Unveils Diamond Mine Bailout

By Rob Bates | April 24, 2025

The government of Canada’s Northwest Territories (NWT) has put forward a package of proposals to support the area’s struggling diamond miners.

A government statement issued this week said the region’s three operating diamond mines—Diavik, Ekati, and Gahcho Kué—are “facing a convergence of pressures” that imperil their survival, including low global diamond prices, inflation, supply chain disruptions, and possible tariff impacts.

The three mines employ a total of 1,000 people and account for about 20% of the region’s gross domestic product. They all showed losses in 2024, leading to speculation that they might shut.

“This is about protecting our economy from sudden shock,” Northwest Territories minister of finance Caroline Wawzonek said in the statement. “The diamond sector has been central to the Northwest Territories’ economy for decades, and we have a responsibility to act when the stakes are this high.”

The government’s plan includes doubling the number of local diamond valuators, which will allow miners to get product to market quicker (and boost their cash flow); providing $11.2 million in property tax relief; and returning carbon taxes that two of the mines paid to an emission reduction fund. (Diavik received cash from the fund, as it’s partially solar-powered.)

All these actions would be time-limited and include clear expectations around transparency and accountability, said the statement.

“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 this sector,” said Wawzonek. “Our government’s support must be directed to ensuring that NWT-based labor and businesses are protected in this challenging operating environment.”

While the measures would cost the government money, Wawzonek told the CBC that any mine closures would have a “far more significant” impact on its revenues.

Top: The Diavik diamond mine (photo courtesy of Diavik)