Canada’s first commercial diamond mine, the Ekati Diamond Mine in the Northwest Territories, is set to cease operations after its owner, Arctic Canadian Diamond Company, entered receivership following an unsuccessful court-supervised sale process. The development marks the end of nearly three decades of production at one of the world’s most significant natural diamond mines.
The Supreme Court of British Columbia appointed PricewaterhouseCoopers (PwC) as receiver after no qualified buyer emerged despite a broad marketing process that contacted more than 140 potential investors. The receiver will oversee the orderly closure of the mine, environmental management and reclamation activities.
Arctic Canadian Diamond Company, a subsidiary of Burgundy Diamond Mines, had entered creditor protection in May 2026 after facing mounting financial pressure. The company cited prolonged weakness in natural diamond prices, reduced demand from China, growing competition from laboratory-grown diamonds, inflationary costs and tariff-related challenges as key factors affecting its financial position. Despite receiving financial support through the Canadian government's Large Enterprise Tariff Loan programme, the company was unable to secure additional funding or complete a sale of the operation.
Ekati began commercial production in 1998 and was Canada's first diamond mine, helping establish the country as a major producer of natural diamonds. Over its operating life, the mine became a significant supplier of gem-quality rough diamonds and played a key role in the development of the Canadian diamond industry.
The closure is expected to have implications for employment, Indigenous communities and contractors associated with the operation, while also further reducing Canada's natural diamond production capacity following the planned closure of the Diavik mine. For the global diamond industry, Ekati's shutdown underscores the continued financial challenges facing rough diamond producers amid a prolonged market downturn and changing consumer demand.