The NWT government says it will let the territory’s diamond mines keep another $9 million property tax they would otherwise have to pay – the latest in a series of measures designed to help keep the mines in business.
The Diavik mine will close in March, the Ekati mine just received a $115-million federal loan after laying off hundreds of people, and the Gahcho Kué mine has indicated it faces economic difficulties of its own as the market for diamonds worsens.
In a Tuesday news release, issued hours before the GNWT was set to mostly close down for Christmas, the territory said it was “extending targeted property tax relief for diamond mines into the 2026-27 fiscal year to support near-term economic stability.”
It’s the second such move by the GNWT in less than a year.
In April, the territory gave the three mines a collective $11.2 million in property tax relief.
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That decision was billed as a response to a “clear risk of disruption to northern jobs,” though hundreds of workers were laid off at Ekati even after that initial tax break. One MLA called it a “hail Mary” approach.
According to the GNWT, the latest round of tax relief is worth $8.8 million and represents “a 45-percent reduction compared with projected revenues without relief.”
More: Federal Ekati loan brings relief, skepticism
The territory said it had issued “clear expectations around transparency and accountability” such as keeping northerners in work and meeting obligations to local contractors.
Some contractors ended up being owed millions of dollars by Ekati owner Burgundy before the federal loan came in, and it’s not clear how much of that debt the loan will cover.
