The NWT government says its “priority right now is people” as the Ekati diamond mine’s owner files for creditor protection and looks to sell it off.
Burgundy Diamond Mines subsidiary Arctic Canadian declared insolvency last week, saying it could no longer afford to pay its staff.
Some mining continues, but Burgundy is preparing to try to offload the mine in a court-supervised sale process beginning next week.
Arctic Canadian has liabilities of more than half a billion dollars and Burgundy says it lost more than $100 million last year.
In a statement on Monday, NWT industry minister Caitlin Cleveland said her government was “closely monitoring the court proceedings and will continue to advocate for the interests of northern workers and communities as this process unfolds.”
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“Our priority right now is people,” Cleveland stated.
“GNWT staff are ready to support any workers who may be impacted by connecting them with income and employment programs, career and mental health counselling, job referrals, and retraining.
“We are also working with Indigenous governments and industry partners to ensure outreach is happening in communities so people can access help quickly.”
By email, Rebecca Alty – the NWT’s MP and federal minister of Crown-Indigenous relations – said she was “very concerned” by developments at Ekati, which has been a pillar of the territory’s economy for decades.
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“Our focus is first and foremost with the employees, and we will be there to support them through this difficult time,” Alty stated.
“The Federal government is engaged on this matter and will have more to say in the coming days.”
Cleveland ended her statement by referring to “new opportunities opening up” in terms of the territory’s ongoing shift from diamond mining to military investment and major infrastructure projects.
“These projects will create jobs, open new resource projects, strengthen supply chains, address housing needs, and improve Canada’s Arctic security,” she stated.
“These projects will ensure the NWT is a key part of Canada’s economic and energy future.”
