The Canadian government will implement targeted relief measures to support the diamond-mining sector and help it maintain economic stability amid the market downturn, rapaport.com reports.
The move comes in response to growing financial pressures and industry-wide uncertainty, the Government of the Northwest Territories said.
The three diamond mines in the region — Diavik, Ekati and Gahcho Kué — represent its largest industry and the biggest contributor to the economy, comprising approximately 20% of its gross domestic product (GDP).
“The Northwest Territories diamond sector is currently facing a convergence of pressures — including low global diamond prices, inflation, supply-chain disruptions, and emerging tariff impacts — that have resulted in significant financial losses and growing uncertainty across the industry,” the government explained.
Mountain Province, which owns Gahcho Kué with joint-venture partner De Beers, reported a net loss of $56.4 million for 2024, while sales fell 19% to $195.2 million.
For the same period, Ekati owner Burgundy Diamonds saw a net loss of $94.7 million and Diavik operator Rio Tinto recorded an underlying loss of $127 million.
As part of the relief fund, the government will double the number of local diamond valuations in 2025 and 2026 and cover the associated costs, allowing producers to get rough to market faster and improve cash flow. It will also temporarily reduce the tax rate for minerals, which will amount to property tax relief savings of $11.2 million among the three mines. In addition, it will release money the miners put away in a fund designated for carbon tax contributions, and will work with the Indigenous governments and development corporations on additional infrastructure and transition supports, it noted.
“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. Our government’s support must be directed to ensuring that Northwest Territory-based labor and businesses are protected in this challenging operating environment,” said Caroline Wawzonek, minister of finance for the Northwest Territories.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
