In a statement issued Wednesday, company spokesperson Ariella Calin confirmed that the decision was driven by plunging global diamond prices, which have rendered the Point Lake kimberlite pipe "sub-economic" to mine.
Despite the halt, Burgundy says it will maintain the open-pit site in a state of readiness, allowing for rapid resumption if market conditions improve.
Mining will continue at the nearby Misery underground site, located roughly two kilometres from Point Lake. Calin noted that production at Misery has "significantly improved" in recent months, thanks to advanced mining techniques and new equipment.
The Ekati mine is one of three operating diamond mines in the territory — all of which are approaching the end of their life cycles. The sector's uncertain future has raised alarms among local communities and Indigenous governments who rely heavily on mining revenues and employment.
Ekati alone reported a $97 million loss in 2024, contributing to mounting pressure across the region’s diamond industry. Earlier this year, the N.W.T. government responded with a tax break package and financial assistance in a bid to stabilise mining operations and protect jobs.
In September 2024, Burgundy had already paused expansion plans for Ekati and requested regulatory reforms in a letter addressed to N.W.T. Premier R.J. Simpson.
As the territory faces a possible post-diamond economic transition, the latest layoffs further underscore the volatility of the global diamond market and the challenges ahead for Canada’s North.
