The Ekati diamond mine in Canada’s Northwest Territories has temporarily halted work at Point Lake, its open pit, leading to the layoff of hundreds of workers.
Owner Burgundy Diamond Mines said the suspension stemmed from “continuing challenging market conditions for the rough diamond market,” adding that “in the current depressed diamond price environment, the Point Lake operation is sub-economic.”
Burgundy “will continue to maintain Point Lake to ensure that it can quickly and efficiently restart operations, should market conditions allow,” it said.
The miner stated that work will continue at its other diamond-producing project, the nearby Misery underground mine, noting that “production rates at Misery have significantly improved in recent months.”
A Burgundy spokesperson told Cabin Radio that “several hundred employees and contractors” received pink slips as the result of the Point Lake closure. Diamond mining is one of the main industries in the Northwest Territories.
Prior to halting Point Lake operations, Burgundy temporarily stopped trading in its shares on the Australian Securities Exchange.
In April, company CEO Kim Truter announced he was stepping down. He has been replaced on an interim basis by board member Jeremy King.
The miner purchased Ekati in 2023 for $136 million. Burgundy reported a net loss of $97.3 million for fiscal year 2024.
Top: An aerial view of the Ekati mine (photo courtesy of Arctic Canadian Diamond Company)