Burgundy Diamond Mines says it’s laid off several hundred employees and contractors and has temporarily stopped open pit mining at Point Lake — one of its two active operations at the Ekati Diamond Mine.
In an emailed statement to CBC News on Wednesday, Ariella Calin, a communications manager for the company, said mining the Point Lake kimberlite pipe had become “sub-economic” because diamond prices have reached record lows.
Calin said Burgundy will continue to maintain the open pit so that operations can start again quickly if the economic situation gets better.
She also said mining at the Misery underground mine, about two kilometres away from Point Lake, will continue and that its “production rates have significantly improved in recent months” with new mining techniques and equipment.
Ekati is one of the N.W.T.’s three diamond mines, which are all approaching closure — raising fears for how the N.W.T.’s economy will pivot once they close, and what it will mean for Indigenous governments, as the mines provide revenue and jobs for many communities.
All three mines reported millions of dollars in losses in 2024, with Ekati seeing a $94.7-million loss.
Wednesday’s news comes several months after the N.W.T. government announced a tax break and new funding for diamond mines to help stave off the economic issues the mines are experiencing. Last September, Burgundy paused its plan to expand Ekati and wrote to N.W.T. Premier R.J. Simpson, calling for numerous changes to regulations.
