News
Apr 4, 2025
Canada’s Northwest Territories Rolls Out Relief Plan to Save Its Diamond Mines
Canada’s remote diamond producers will receive targeted tax relief and operational support to weather low prices, inflation, and supply-chain strains.
Rachel L. Stein
rachel.l.stein@fifthavemag.com
The Diavik diamond mine operating in the Northwest Territories prior to the bailout announcement.
Facing a confluence of low global diamond prices, inflationary pressures, supply-chain disruptions, and looming tariffs, Canada’s Northwest Territories government has unveiled a financial package to stabilize its three major mines—Diavik, Ekati, and Gahcho Kué—which together employ about 1,000 people and account for roughly 20% of the region’s GDP. Measures include doubling local diamond-valuator staffing to speed sales, $11.2 million in property-tax relief, and reimbursement of carbon taxes paid into an emissions fund.
These supports are strictly time-limited and tied to clear transparency and accountability standards, emphasizing protection for workers, communities, and Indigenous governments rather than corporate profits. Northwest Territories finance minister Caroline Wawzonek noted that while the relief carries a cost, it pales compared to the fiscal and social fallout of potential mine closures.
Rachel L. Stein is the senior editor, news at 5th Ave. Magazine, covering government policy and the diamond mining side of jewelry.
