$11m in Government Aid for Canada's Diamond Mines
April 24, 25
(IDEX Online) - Three of Canada's loss-making diamond mines are to receive a CAD 15m (USD 11m) support package from the Northwest Territories government, to prevent job losses and protect collaborative initiatives between miners and Indigenous communities.
Diavik, Ekati, and Gahcho Kue will benefit, between them, from CAD 11.2m (USD 8.2m) in 2025 property tax relief , and a CAD 416,000 (USD 304,000) investment to speed up government diamond valuations, which will accelerate cash flow.
In addition, Ekati and Gahcho Kue will get CAD 1.7m (USD 1.2m) and CAD 2.1m (USD 1.5m) respectively as refunds of NWT carbon taxes that they have already paid.
The announcement was made by minister of finance Caroline Wawzonek, on Tuesday (22 April) following pressure from miners.
"This is about protecting our economy from sudden shock," she said. "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.
"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."
Diavik (owned by Rio Tinto) Ekati (owned by Burgundy), and Gahcho Kue (De Beers and Mountain Province) all suffered heavy losses in 2024 amid the global downturn.
The three mines account for around a fifth of the NWT's annual GDP and are critical to its economy.
They are slated for closure - estimated at 2026, 2029 and 2030 respectively - but there have been fears that dwindling demand may render them uneconomic before those dates.
Pic shows the Diavik mine, due to close next year.