The Government of the Northwest Territories (GNWT) unveiled a package of targeted relief measures on Tuesday aimed at bolstering the territory’s crucial diamond mining sector, which is facing mounting financial pressures and uncertainty. Officials stated the temporary supports are designed to protect Northern jobs, support local businesses, and stabilise the regional economy heavily reliant on the diamond industry.
The NWT’s diamond sector, responsible for approximately 20% of the territory’s GDP and employing over 1,000 Northerners, is currently navigating a confluence of challenges. These include depressed global diamond prices, persistent inflation, supply chain disruptions, and the looming effects of potential tariffs, which have collectively strained the finances of the NWT’s three operating mines: Ekati, Gahcho Kué, and Diavik.
Concerns raised by industry leaders and Indigenous development corporations highlighted a significant risk of disruption to employment and contracting opportunities if no action was taken. The diamond industry has historically been a major economic driver, with over $9.1 billion spent with Indigenous businesses and beneficiaries since mining began in the territory.
Following extensive dialogue with mine operators, Indigenous development corporations, and federal officials, the GNWT will:
- Double the number of local diamond valuations in 2025–2026 and cover the associated costs, improving cash flow by allowing producers to get product to market faster;
- Temporarily reduce the 2025 general mill rate for Class 4 – Minerals, providing $11.2 million in targeted property tax relief among the three mines;
- Release remaining balances from the Large Emitter Greenhouse Gas (GHG) Reducing Investment Fund, returning carbon tax contributions to Ekati and Gahcho Kué mines to support ongoing operational costs. Diavik Diamond Mines previously accessed the Large Emitter Fund to help finance its 2024 solar panel installation; and
- Continue working with Indigenous governments and development corporations to engage federal partners on additional infrastructure and transition supports.
“This is about protecting our economy from sudden shock,” stated Finance Minister Caroline Wawzonek. “These targeted, short-term supports are not about corporate profits—they’re about maintaining stability for the workers, families, communities, and Indigenous governments that rely on this sector.”
Minister of Industry, Tourism and Investment, Caitlin Cleveland, described the measures as pragmatic. “It’s about preventing disruption and creating the space to plan for what comes next—together,” she said, noting that the support is intended to “bridge that gap” until potential new mining projects come online in the future.