Government provides crucial support to the Ekati Diamond Mine amid trade uncertainty, protects Northern workers and local communities in the Northwest Territories

From: Department of Finance Canada

News release

December 18, 2025 - Ottawa, Ontario - Department of Finance Canada

Disruptive trade patterns are bringing uncertainty to sectors across Canada and impacting businesses’ longer-term planning and operations. The diamond sector, a centrepiece of the Northwest Territories’ economy – employing over 1,000 Northerners and contributing close to 20 per cent of territorial gross domestic product – is particularly exposed.

Tariffs coupled with low global diamond prices, inflationary pressures, and sustained supply chain bottlenecks are proving a challenge to navigate. That’s why the government is responding with a loan to support the Ekati Diamond Mine in the Northwest Territories.

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that the federal government, through Canada Enterprise Emergency Funding Corporation, is providing financial support to Arctic Canadian Diamond Company Ltd., the operator of the Ekati Diamond Mine located along Lac de Gras.

This $115 million loan through the Large Enterprise Tariff Loan facility will help the Ekati Diamond Mine continue operations and protect valuable jobs in the community.

The Government of Canada recognizes that the Ekati Diamond Mine contributes significantly to the territory’s economy. While diamond mining remains one of the Northwest Territories’ primary economic drivers, many mines are approaching the end of their operational lives.

That’s why the Government of Canada is both providing the loan to ensure the Ekati mine can continue to operate and also working with the Government of the Northwest Territories, Indigenous governments, and Northern organizations to proactively support economic diversification and create new, sustainable opportunities for Northerners.

Quotes

“Our government understands the value diamond mining brings to the Northwest Territories’ economy and its people. The loan announced today will support stability. It will help to maintain good, high-value jobs, strengthen our Northern industries, and help us build a more diversified and prosperous economic future for all of Canada.” 

- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

“Tariffs are having a real impact on workers, families, and communities across the Northwest Territories. From the beginning, our government has always been clear that we will be there to protect Canadian interests. Today’s announcement of $115 million to help the Ekati Diamond Mine not only reflects our commitment to supporting jobs and families but also our commitment to ensuring this moment of economic change becomes a generational opportunity for Northerners.”

- The Honourable Rebecca Alty, Minister of Crown-Indigenous Relations 

“Ekati has been a cornerstone of the Northwest Territories’ economy for decades, supporting workers, families, and Indigenous communities. This support will help protect good jobs today while giving the North the stability it needs to plan for a resilient, diversified, and sustainable economic future.”

- The Honourable Tim Hodgson, Minister of Energy and Natural Resources

Quick facts

  • The Ekati Diamond Mine, operated by Arctic Canadian Diamond Company Ltd., is Canada’s first combined surface and underground diamond mine. It is located approximately 300 km northeast of Yellowknife in the Lac de Gras region of the Northwest Territories.

  • In 2024, Ekati employed 208 Northern Indigenous workers and invested $210 million in Northern Indigenous businesses.

  • In March 2025, the government announced the creation of the Large Enterprise Tariff Loan (LETL) facility, a $10 billion financing facility managed by Canada Enterprise Emergency Funding Corporation, a subsidiary of Canada Development Investment Corporation, to support Canadian companies affected by actual or potential tariffs and countermeasures.

  • On September 5, the government announced updates to the LETL facility to extend more flexible terms to all sectors.

  • Amendments included reducing the minimum annual revenue requirement from $300 million to $150 million, reducing the minimum loan size from $60 million to $30 million, extending the loan maturity from 5 to 7 years, reducing the initial interest rate, and requiring companies to prioritize worker retention.

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Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
john.fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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2025-12-18