N.W.T. government announces relief for ailing diamond mines
Measures include ramping up local diamond valuations, temporary property tax relief
The Northwest Territories government has announced several new policies aimed at propping up the territory’s ailing diamond mines.
The targeted measures are aimed to provide financial relief to diamond mines while low diamond prices, supply chain disruptions and potential U.S. tariffs wreak havoc on the industry.
The measures include a temporary reduction in property taxes paid by N.W.T. mines to the territorial government, and allowing the Ekati and Gahcho Kue diamond mines to use around $4 million from a fund previously set aside for green projects to reduce mine emissions for general operations. They also include doubling the number of local diamond valuations this fiscal year so diamonds can get to market more quickly.
Mining is the largest private-sector contributor to the N.W.T.’s economy, with the N.W.T. government saying its three operating diamond mines collectively account for about 20 per cent of the territory’s GDP. All thee N.W.T. diamond mines reported losses in 2024, and mining companies called for government support earlier this month
“These measures respond directly to urgent economic concerns raised by industry leaders and
Indigenous development corporations,” the N.W.T. government wrote in a news release announcing the policies.
“Without action, there is a clear risk of disruption to northern jobs, contracting opportunities, and the economic stability of communities that rely on the sector.”
Related stories from around the North:
Canada: N.W.T. gov’t to review impact benefit agreements between mines and Indigenous groups, CBC News
Sweden: Swedish developer GRANGEX buys iron ore mine on Norway’s border to Russia, The Independent Barents Observer
United States: Canada and U.S. make co-investment in Fortune Minerals N.W.T. project, The Canadian Press
