The Canadian government has granted Ekati a loan of 115 million Canadian dollars (about $83 million) that will enable the Northwest Territories–based mine to keep functioning.
Jeremy King, CEO of Ekati’s owner, Burgundy Diamond Mines, told the CBC that the mine nearly shut down “weeks ago.”
“We were in a very bleak, or stark, scenario,” he said. “It was either this [credit] line or we were looking at bankruptcy and shutting the mine down.”
The loan “is not a fix-all,” he added. “It still remains a very challenging time.”
He said U.S. tariffs have added to the mine’s woes.
“What we’re trying to do is get to a point where this funding bridges us [through] this difficult period.”
A Canadian government spokesperson told the CBC that the Large Enterprise Tariff Loan contains “strong conditions,” including “job guarantees, strong loan repayment provisions, among others.”
Caitlin Cleveland, the Northwest Territories’ minister for education, culture, and employment, said in a statement that the news “will come as a relief to many Northerners. Ekati is an important private-sector employer in the Northwest Territories.…
“Our priority continues to be people,” she continued. “The diamond industry has long strengthened communities, supported local businesses, and created opportunities across the North. We are grateful for what this industry continues to contribute, and for the people who make it work every day.”
Top: the Ekati mine (photo courtesy of Ekati)
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