Ekati’s owner requests another trading halt, applies for federal funding
Burgundy Diamond Mines says external funding needed to ensure continued operations at Ekati. The owner of the Ekati Diamond Mine in the N.W.T. has requested another public trading halt on the Australian Securities Exchange and applied for tariff relief from the Canadian government.
If approved, this will be the second time Australia-based Burgundy Diamond Mines halted trading within the last three months. The last time the company halted trading, it proceeded to lay off a number of employees and issued a new operations plan.
Burgundy Diamond Mines issued a news release on Monday that said Ekati has been experiencing challenging market conditions. It attributed this to the U.S. tariffs that are disrupting the global diamond trade.
The release cites the 50 per cent tariff on imports from India which accounts for 90 per cent of global diamond manufacturing.
The news release says external funding “is necessary to ensure the continued financial viability of the company and the operations of the Ekati mine.”
The company said it has been advised that it has been “approved as eligible” for tariff relief funding up to $150 million.
This doesn’t mean the company will be receiving any money.
The company says the process is expected to conclude in a matter of weeks.
The company expects the trading suspension to be lifted when it is confirmed that external funding has been received.
CBC News has reached out to Burgundy Diamond Mines for comment.
Related stories from around the North:
Canada: Yukon’s mining law framework promises major change, but not everyone’s happy, CBC News
Greenland: Greenland ‘Freedom City?’ Rich donors push Trump for a tech hub up north, Reuters
Sweden: Wooden church in Arctic Sweden sets off on slow road trip to escape mining subsidence, The Independent Barents Observer
United States: Canada and U.S. make co-investment in Fortune Minerals N.W.T. project, The Canadian Press
