NWT commits millions to help prop up its diamond mines

The NWT is redirecting millions of dollars – including cash earmarked for emissions reduction projects – to help its three diamond mines, which are struggling. The territorial government said “targeted relief measures” were needed because of “growing financial pressures and industry-wide uncertainty.”

All three operating mines northeast of Yellowknife – Diavik, Ekati and Gahcho Kué – have seen their owners report significant losses in the past year, driven in part by suppressed diamond prices as the market for lab-grown diamonds increases. Global trade uncertainty brought on by the United States’ approach to tariffs is another factor.

The GNWT says it will give the three mines a collective $11.2 million in property tax relief and spend up to $416,000 speeding up diamond valuation, which is carried out by territorial staff. Doing so will help diamonds get to market faster, the territory said. The fund was part of the NWT’s “made in the North” carbon tax. It existed so that diamond mines could pay tax into it but then withdraw cash later to help fund projects that reduced their emissions. The Diavik mine, for example, used $3.3 million from the fund to help pay for a large solar project.

The GNWT says returning the fund to the mines will give Ekati an extra $1.7 million and Gahcho Kué another $2.1 million. “These measures respond directly to urgent economic concerns raised by industry leaders and Indigenous development corporations,” the territorial government stated.