An N.W.T. business has announced significant layoffs due to delayed payments and uncertainty regarding future plans from the owner of the Ekati diamond mine. Lee Cawson, the vice president of operations at the Aurora Group of Companies, revealed that Burgundy Diamond Mines, the owner of Ekati, is approximately $8 million behind in payments.
Cawson stated that Aurora had employed around 90 mechanics and welders at the Ekati site, but as of the previous week, all of them had been permanently laid off. Despite efforts to collaborate and find solutions, the situation reached a point where business decisions had to be made for the company to move forward.
Burgundy Diamond Mines, headquartered in Australia, cited record-low diamond prices for the mass layoffs earlier in the year and reported significant losses in 2024. The company has faced financial challenges, including trading halts and requests for tariff relief from the Canadian government, to sustain Ekati mine operations.
Although Burgundy did not respond to interview requests, a spokesperson emphasized their commitment to maintaining vendor payments. The financial troubles have also impacted closure plans for the Ekati mine, prompting Burgundy to seek extensions for environmental assessments due to delayed payments to consultants.
The N.W.T. government has allocated $327 million in securities to cover Ekati mine-related expenses. Cawson highlighted the abrupt payment issues with Burgundy starting in June, leading to gradual layoffs and eventual removal of all staff by September due to the lack of communication and clarity on resolving outstanding payments.
The Aurora Group’s other operations remain unaffected by the Ekati situation. Finning Canada, another contractor at Ekati, declined to disclose any owed amounts but expressed confidence in Burgundy’s future success. Burgundy’s application for tariff relief funding is still under evaluation, with no immediate updates on the approval status provided by the federal funding management entity.
Overall, the ongoing financial challenges at Burgundy Diamond Mines continue to impact Ekati mine operations and the local workforce, leaving many uncertain about the future of the diamond mine.