Canada’s Northwest Territories Introduces Strategic Relief Package to Safeguard Diamond Industry

In a decisive move to support the backbone of its economy, the Government of the Northwest Territories (GNWT) announced a series of relief measures on Tuesday aimed at stabilising the region’s diamond mining sector. With the industry under increasing strain, the initiative is designed to safeguard jobs, protect Indigenous partnerships, and preserve economic momentum across the territory.

The diamond industry, which contributes roughly 20% to the NWT’s GDP and supports over 1,000 direct jobs, is currently grappling with a perfect storm of global challenges. Slumping international diamond prices, inflationary pressures, logistical hurdles, and potential trade tariffs have placed considerable financial stress on the territory’s three major mines—Ekati, Gahcho Kué, and Diavik.

Industry leaders and Indigenous development corporations have voiced growing concern over the risk of significant job losses and disrupted contracting opportunities. With over $9.1 billion historically directed to Indigenous businesses and beneficiaries through diamond mining operations, the stakes are high.

In response, the GNWT has introduced a four-pronged strategy to provide immediate support:

• Enhanced Diamond Valuations: The number of local diamond valuations will be doubled for 2025–2026, with associated costs fully covered by the government. This move aims to accelerate market access and ease cash flow constraints for producers.

• Targeted Tax Relief: The general mill rate for Class 4 – Minerals will be temporarily reduced in 2025, translating to $11.2 million in property tax relief distributed across the three active mines.

• Carbon Tax Reinvestment: Remaining funds from the Large Emitter Greenhouse Gas Reducing Investment Fund will be released to support operational costs at Ekati and Gahcho Kué, effectively redirecting carbon tax contributions to sustain mine operations. Diavik has already benefited from this fund to support its 2024 solar energy upgrade.

• Collaborative Federal Engagement: The GNWT will continue partnering with Indigenous governments and corporations to advocate for federal infrastructure investments and transitional support for long-term sustainability.

“This isn’t about propping up profits—it’s about protecting livelihoods and economic stability in our communities,” said Finance Minister Caroline Wawzonek. “We’re taking a proactive approach to cushion the territory from a sudden economic downturn.”

Echoing that sentiment, Minister of Industry, Tourism and Investment, Caitlin Cleveland, highlighted the importance of preparing for the future. “These measures are about creating breathing room—ensuring that while we deal with today’s challenges, we’re also planning for tomorrow’s opportunities.”

As the NWT eyes potential new mining ventures, the relief package is seen as a critical bridge—one that preserves a vital economic engine while setting the stage for future growth and innovation in the region’s resource sector.