The owners of the NWT’s Ekati diamond mine say they want more “operational efficiencies” but have yet to embark on “significant adjustments to our workforce.”
Two people with knowledge of operations at the mine said this week a small number of personnel related to environmental work at Ekati were being laid off.
Asked repeatedly if this was the case, Burgundy Diamond Mines – which has owned Ekati since 2023 – neither confirmed nor denied the layoffs but said no large-scale changes were taking place.
“Part of our transformation journey includes scaling our hiring needs and workforce to meet the size of our current operations. Any significant adjustments to our workforce will naturally require engagement with the government, Indigenous partners, union associations, regulators and of course our employees and contractors,” a spokesperson for the company said by email on Wednesday.
Pressed on any recent changes, the spokesperson later wrote: “As a scale mine with significant seasonal work, adjusting our workforce (employees and contractors) is part of our normal business operations. When scale workforce reductions occur, we are obliged to engage with numerous stakeholders. This has not occurred.”
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The Union of Northern Workers said it had not been advised of “any anticipated layoffs affecting our members at Ekati.”
The NWT’s mines are coping with falling rough diamond prices in the face of a strengthening lab-grown diamond market.
Earlier this month, the neighbouring Rio Tinto-owned Diavik diamond mine issued a statement saying it still intended to carry on mining into early 2026. Two executives with knowledge of the mine’s operations had earlier told Cabin Radio they had been advised that Diavik’s closure date could be brought forward to minimize losses. They spoke on condition of anonymity to discuss sensitive information they were not authorized to disclose.
In an interim sales report sent to investors last month, Burgundy said it was “focused on further securing the company’s financial position by reducing its unit
costs across all aspects of the business.” It did not provide further detail at the time.
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Three months earlier, Burgundy had written to NWT Premier RJ Simpson asking for more GNWT support or it would “need to revisit the viability of the Ekati asset and focus on growth elsewhere” – even as Burgundy stated publicly that Ekati was outperforming its expectations.
Burgundy requested that diamond royalty valuation, where GNWT officials assess the cut of diamond revenue it should take, be speeded up so that the product isn’t left sitting around for weeks.
Burgundy also said the amount of money the GNWT demands be set aside to pay for mine closure is too much for it to bear.
The mine and NWT ministers subsequently held a meeting that industry minister Caitlin Cleveland described as “fairly collaborative.”
On Wednesday, the Burgundy spokesperson said the company was “committed to enhancing the economic viability of the asset.”
“We have been focused on strengthening the balance sheet, improving operational efficiencies, reducing costs, optimizing sales channels, and identifying opportunities to extend the mine life,” they wrote.
“Going forward, we will continue to deliver on these priorities and transform the business to build a strong foundation for Burgundy’s future success.”
