Burgundy Diamond Mines has laid off hundreds of workers and contractors after abruptly stopping open-pit mining at the Point Lake site of the Ekati Diamond Mine in Canada’s Northwest Territories.

Company spokesperson Ariella Calin said the decision was due to falling global diamond prices, which made the site unprofitable.

The site will be kept in a ready state in case market conditions improve. Meanwhile, mining will continue at the nearby Misery underground site, about two kilometers from Point Lake. Calin noted that output at Misery has improved recently thanks to new equipment and better techniques.

Ekati is one of only three active diamond mines in the region, all nearing the end of their lifespans. The layoffs raise concerns for local communities and Indigenous groups that depend on mining for jobs and revenue.

Burgundy reported a $97 million loss at Ekati in 2024. Earlier this year, the territorial government introduced tax breaks and financial aid to support the industry and protect jobs.

Last September, Burgundy paused expansion plans at Ekati and asked the government for regulatory changes.

With the diamond market in flux, this latest move highlights the uncertain future facing Canada’s North.

Who is Burgundy Diamond Mines?
Burgundy Diamond Mines is an Australian-based company that acquired full ownership of the Ekati Diamond Mine in 2023. The company focuses on high-end diamond production and operates across the mining, polishing, and retail sectors. Its aim is to control the entire value chain — from mine to market — with a particular emphasis on ethically sourced, luxury-grade diamonds.