Burgoundy Diamond Mines says he has fired several hundred employees and contractors and has temporarily stopped open well mining in Point Lake, one of his two active operations in the Ekati Diamond mine.
In a statement sent by email to CBC News on Wednesday, Ariella Calin, communications manager of the company, said Mining The Point Lake Kimberlite Pipe had become “sub -basic” because diamond prices have reached minimal records.
Calin said that Burgundy will continue to keep the well open so that operations can quickly start again if the economic situation improves.
He also said that mining in the underground mine of Misery, about two kilometers away from Point Lake, will continue and that its “production rates have improved significantly in recent months” with new mining techniques and equipment.
Ekati is one of the three NWT diamond mines, which approach the closure, which increases fears of how the NWT economy will turn once they close, and what will mean for indigenous governments, since the mines provide income and jobs for many communities.
The three mines reported millions of dollars in losses in 2024, with Ekati seeing a loss of $ 94.7 million.
Wednesday’s news occurs several months after the NWT government announced a tax exemption and a new financing for diamond mines to help avoid the economic problems that mines are experiencing. Last September, Burgundy stopped his plan to expand to Ekati and wrote NWT Premier RJ Simpson, asking for numerous changes in regulations.
