Receiver appointed to oversee winding down of Ekati diamond mine in N.W.T.
Court documents say 140 potential buyers were contacted, but the mine is expected to run out of cash within a week.
- On Tuesday, the GNWT applied for court-ordered receivership of the Ekati Diamond Mine after failing to attract a buyer. PricewaterhouseCoopers will oversee the facility's closure and environmental reclamation.
- Australia-Based Burgundy Diamond Mines entered creditor protection in May after falling diamond prices and market pressures made operations unsustainable. The company contacted 140 "potentially interested parties" but received no viable bids.
- With roughly $14 million in cash as of July 10, the mine is expected to run out of funds this week. Management plans to allocate $3.5 million for vacation pay and $2.1 million for payroll for 340 employees.
- The receiver will manage an approximately 5-week shutdown to prevent environmental harm. Minister of Industry, Tourism and Investment Caitlin Cleveland said the receiver will connect with staff in coming days to explain what they can expect.
- Ekati's closure marks the end of an era for the Northwest Territories diamond industry, following the Diavik Diamond Mine's shutdown earlier this year. Territorial leaders are now pivoting toward critical minerals as a longer-term economic driver.
10 Articles
10 Articles
The Toronto Star
Receiver appointed to oversee winding down of Ekati diamond mine in N.W.T.
The Northwest Territories government says PricewaterhouseCoopers has been appointed receiver to oversee the winding down of the Ekati diamond mine as that once-vital sector to the local economy continues to
Nobody steps in to buy Ekati, mine poised to shut down for good
The NWT's Ekati diamond mine looks set to shut down and enter reclamation after nobody bid for it in a court-supervised sales process. The post Nobody steps in to buy Ekati, mine poised to shut down for good first appeared on Cabin Radio.
Ekati set to close its doors for good - Yellowknifer
The future of Ekati diamond mine has been all but sealed and it appears that the end is upon us. No one stepped up to buy the troubled mine, meaning that it’s certain to enter shut-down mode. Potential buyers had until July 10 to come up with a bid and with none made as of the deadline, it appears the mine will start the process of reclamation. Arctic Canadian Diamond Company, a subsidiary of Burgundy Diamonds, entered creditor protection in May…
Coverage Details
Bias Distribution
- 75% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
