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Canadian diamond mining is declining as major mines near closure, threatening the Northwest Territories' economy.
Diamond mining in Canada’s Northwest Territories is declining as major mines near closure, with Rio Tinto’s Diavik mine set to shut in March 2026, and De Beers’ Gahcho Kue mine expected to operate until 2031.
The Ekati mine may extend to 2040 but faces financial strain, prompting staff cuts and a stock trading suspension, worsened by U.S. tariffs on imported finished diamonds and falling global demand due to lab-grown alternatives.
The industry, which contributed over $20 billion to the territory’s economy and supports a significant portion of its GDP and government revenue, is under pressure.
Federal aid, including an $115-million tariff loan, has been provided, but long-term sustainability remains uncertain.
As mines close, reclamation work will offer temporary jobs, but these do not generate royalties or taxes.
Territorial leaders are pushing for economic diversification into critical minerals, tourism, and film, but transitioning from large-scale mining to a more diversified economy presents significant challenges.
La minería canadiense de diamantes está disminuyendo a medida que las principales minas están cerca del cierre, amenazando la economía de los Territorios del Noroeste.