N.W.T.'s Ekati mine set to shut down as it enters receivership

N.W.T.'s Ekati mine set to shut down as it enters receivership

No buyers stepped forward after mining company filed for creditor protection

The Ekati Diamond Mine in the N.W.T. is set to shut down after it entered receivership Tuesday following a decision from the Supreme Court of British Columbia.

The decision came after no buyers stepped forward to purchase the diamond mine after its parent company Arctic Canadian Diamond Company filed for creditor protection in May.

As first reported by Cabin Radio, PricewaterhouseCoopers will manage the receivership.

According to a statement from the government of the Northwest Territories on Tuesday, the receiver will be responsible for overseeing site operations, care and maintenance, and eventual reclamation and closure activities under the supervision of the court.

Arctic Canadian Diamond Company is the Calgary-based operator of the Ekati mine and a subsidiary of Australian mining company Burgundy Diamond Mines.

In the government's statement, N.W.T. Environment Minister Jay Macdonald described the moment as “difficult.”

He said the receiver will begin work immediately.

“For nearly three decades, operations at Ekati have supported workers, families, Indigenous governments, northern and Indigenous businesses, contractors and communities across the N.W.T.,” he said.

Minister of Industry, Tourism and Investment Caitlin Cleveland said in the statement that the receiver will connect directly with employees within the next few days and weeks to provide information on what they can expect.

Court filings from earlier this year said Ekati, which is located about 300 kilometres northeast of Yellowknife, had about 340 employees on March 31.

Ekati, which opened in 1998, had been slated to close in 2029, but with falling diamond prices, the company said it wasn't able to pay its bills and filed for creditor protection. Diavik Diamond Mine ceased operations earlier this year, after operating in the Northwest Territories for more than 25 years. The Gahcho Kué diamond mine is also struggling, announcing in February that it would pause an expansion project and was in workforce reduction discussions.

Cleveland said although the territory is losing its diamond mines, it is seeing new investments in Arctic security and critical minerals.

“Our job is to turn that attention and investment into lasting benefits for northerners, Indigenous governments, northern businesses and communities.”

Yumna Iftikhar is a Pakistani Canadian journalist covering the impact of federal policies on minority communities. She also writes about climate change and Canada’s energy transition journey. Yumna holds a Master of Journalism from Carleton University. She can be reached at yumna.iftikhar1@cbc.ca