The government of Canada’s Northwest Territories (NWT) has extended tax relief measures for its diamond mines by an additional year, providing an estimated $8.8 million in support to help the sector weather a prolonged market downturn, according to news reports.
The programme, first introduced in March, now runs until 2027.
All three of Canada’s diamond mines—Ekati, Diavik, and Gahcho Kué—are located in the territory, where diamond mining represents the largest share of gross domestic product (GDP) and is the biggest private-sector industry.
“The extension…reflects ongoing pressures facing the global diamond industry, including volatile markets, trade disruptions, and elevated operating costs,” the territorial government was quoted as saying by Rapaport.
It said that the move aims to “reduce the risk of sudden economic disruption while longer-term economic transition and diversification work continues.”
Funds saved through the tax relief are intended to support employee wages, fulfil obligations to local contractors and Indigenous business partners, and maintain mine operations.
The global diamond market has faced significant challenges, with low prices and weak demand straining producers.
Burgundy Diamond Mines, owner of the Ekati deposit, recently secured a C$115 million ($83.3 million) loan from the Canada Development Investment Corporation to sustain operations.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
