{"id":2655,"date":"2025-07-17T11:34:12","date_gmt":"2025-07-17T11:34:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/2655\/"},"modified":"2025-07-17T11:34:12","modified_gmt":"2025-07-17T11:34:12","slug":"several-hundred-jobs-lost-as-ekati-shuts-down-mining-at-point-lake","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/2655\/","title":{"rendered":"\u2018Several hundred\u2019 jobs lost as Ekati shuts down mining at Point Lake"},"content":{"rendered":"

Ekati\u2019s owner says open-pit diamond mining at the Point Lake site has been shut down with the loss of hundreds of jobs.<\/p>\n

In a statement to Cabin Radio on Wednesday afternoon, Burgundy Diamond Mines said it had \u201cmade the decision to temporarily suspend\u201d mining at Point Lake because low prices for diamonds had made the work \u201csub-economic.\u201d<\/p>\n

\"\"A map of the Ekati site shows Point Lake prior to its development alongside the Misery underground (or UG) project, where mining continues. Lynx, another pit, was operational until 2019.<\/p>\n

\u201cMining will continue at Misery underground mine, unaffected by the suspension of activities at Point Lake,\u201d Burgundy stated. Misery and Point Lake were Ekati\u2019s two remaining operational zones.<\/p>\n

Burgundy confirmed some employees and contractors have been laid off but did not initially provide a figure for the jobs lost. A spokesperson later estimated \u201cseveral hundred employees and contractors\u201d are affected.<\/p>\n

Ekati is one of the NWT\u2019s largest employers and has been at the heart of the territory\u2019s most valuable economic sector, diamond mining, since the late 1990s.<\/p>\n

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Over the course of 2024, Burgundy says it employed<\/a> 700 staff and 542 contractors at Ekati, of which 28 percent were northern.<\/p>\n

Wednesday\u2019s announcement represented the shuttering of a major project at the site, one that owners of the mine had previously said<\/a> was key to keeping it open in the longer term. The NWT government recently invested millions of dollars in supports to help keep Ekati and other diamond mines open, arguing in part that doing so was a job protection measure.<\/p>\n

\u201cWithout action, there is a clear risk of disruption to northern jobs, contracting opportunities, and the economic stability of communities that rely on the sector,\u201d the GNWT had said in April as it announced new funding to help the mines.<\/p>\n

Despite that support, which some territorial politicians had opposed, this week\u2019s news delivers a blow to the NWT\u2019s economy.<\/p>\n

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\u201cBurgundy will continue to maintain Point Lake to ensure that it can quickly and efficiently restart operations should market conditions allow. The company has scaled its operating model to support a viable adjusted mine plan without near-term surface operations,\u201d Burgundy stated.<\/p>\n

Burgundy, an Australia-based firm, issued a notice earlier on Wednesday applying for a trading halt<\/a> on the Australian Securities Exchange. Companies usually ask for a trading halt when significant news is imminent and Burgundy told the ASX it planned to issue an \u201coperational update\u201d in the coming day.<\/p>\n

Two messages to Cabin Radio reported some contractors had been told on Wednesday morning not to travel to Ekati, which is one of three active diamond mines in the NWT. Multiple workers confirmed they had been laid off.<\/p>\n

Burgundy said Misery\u2019s underground mining operation would remain active because \u201cproduction rates have significantly improved in recent months via improved mining techniques and equipment utilization.\u201d<\/p>\n

The company said it will provide a production update toward the end of the month.<\/p>\n

Leadership changes<\/p>\n

Burgundy had spent the past year issuing warnings in various forms about its performance and the state of the broader diamond market, which has been disrupted by the growth of lab-grown diamonds<\/a> to rival naturally mined gems.<\/p>\n

In 2024, Burgundy wrote to NWT Premier RJ Simpson asking for a range of new or improved government supports \u2013 and threatening to \u201crevisit the viability of the Ekati asset and focus on growth elsewhere\u201d if nothing changed.<\/p>\n

Earlier this year, the company said it was \u201cpleased\u201d<\/a> with the GNWT\u2019s response, which included new supports to Ekati and other mines worth more than $10 million<\/a>.<\/p>\n

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Even so, Burgundy reported trimming its workforce<\/a> by about 20 percent over the past year as it battled to cut costs. <\/p>\n

In terms of tonnes of ore processed and carats recovered, Ekati\u2019s results for the first quarter of 2025 were its lowest in years. Meanwhile, rough diamond prices remain low and the United States\u2019 fluctuating tariff threats have introduced what Burgundy termed \u201cuncertainty\u201d over the past six months.<\/p>\n

At the start of the year, Burgundy said it would place \u201csignificant focus on gaining financial flexibility\u201d in 2025, including initiatives designed to make sure the company had cash to work with.<\/p>\n

Ekati, which occupies a central role in the NWT\u2019s economy as a pillar of the territory\u2019s largest industry, has had a rollercoaster existence since the pandemic.<\/p>\n

The mine, which opened in 1998, was sold by financially troubled Dominion Diamond Mines to a group of its creditors<\/a>, dubbed Arctic Canadian, in 2021. <\/p>\n

Arctic Canadian then sold the mine to Burgundy<\/a> in 2023.<\/p>\n

Major leadership changes in the past year include the retirement of chief executive officer Kim Truter in May, with Jeremy King his replacement.<\/p>\n

Brent Mierau replaced Brad Baylis as Burgundy\u2019s company secretary in June. Baylis was also the firm\u2019s chief financial officer. No replacement for that role has been named.<\/p>\n

Are you affected?<\/p>\n

If you\u2019re affected by what\u2019s happening at Ekati and have information you\u2019d like to share, you can use this form to contact our reporter.<\/p>\n

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