GNWT Announces Relief Measures to Support Diamond Sector Stability, Protect Jobs and Safeguard Northern Economy

Press Release

April 22, 2025

The Government of the Northwest Territories (GNWT) is implementing targeted relief measures to support the diamond mining sector—the NWT’s largest industry and biggest contributor to the economy—in response to growing financial pressures and industry-wide uncertainty. These actions are designed to maintain economic stability, support local employment and businesses, and sustain decades of Indigenous economic partnership and regional development.

The NWT diamond sector is currently facing a convergence of pressures—including low global diamond prices, inflation, supply chain disruptions, and emerging tariff impacts—that have resulted in significant financial losses and growing uncertainty across the industry.

These measures respond directly to serious economic risks raised by industry leaders and Indigenous development corporations. Without action, there is a clear risk of disruption to Northern jobs, contracting opportunities, and the economic stability of communities that rely on the sector. The diamond industry employs more than 1,000 Northerners and supports millions in annual activity across the territory. Collectively, the NWT’s three operating diamond mines contribute approximately 20 percent of the territory’s Gross Domestic Product (GDP).

Following extensive dialogue with mine operators, Indigenous development corporations, and federal officials, the GNWT will:

• Double the number of local diamond valuations in 2025–2026 and cover the associated costs, improving cash flow by allowing producers to get product to market faster;
• Temporarily reduce the 2025 general mill rate for Class 4 – Minerals, providing $11.2 million in targeted property tax relief among the three mines;
• Release remaining balances from the Large Emitter Greenhouse Gas (GHG) Reducing Investment Fund, returning carbon tax contributions to Ekati and Gahcho Kué mines to support ongoing operational costs. Diavik Diamond Mines previously accessed the Large Emitter Fund to help finance its 2024 solar panel installation; and
• Continue working with Indigenous governments and development corporations to engage federal partners on additional infrastructure and transition supports.

All GNWT supports are time-limited and come with clear expectations around transparency and accountability. Reporting mechanisms will ensure that the benefits flow to NWT-based labour, contractors, and Indigenous business partners.

Quotes

“This is about protecting our economy from sudden shock. The diamond sector has been central to the Northwest Territories’ economy for decades, and we have a responsibility to act when the stakes are this high. These targeted, short-term supports are not about corporate profits—they’re about maintaining stability for the workers, families, communities, and Indigenous governments that rely on this sector. Our government’s support must be directed to ensuring that NWT-based labour and businesses are protected in this challenging operating environment.”
— Caroline Wawzonek, Minister of Finance
“To build a stronger, more resilient economy, we have to make smart decisions in the face of real risks. These measures are a pragmatic step to protect jobs, maintain investor confidence, and ensure that Indigenous businesses and governments don’t lose decades of progress overnight. It’s about preventing disruption and creating the space to plan for what comes next—together.

New mines are on the horizon, but most are still a few years away. This support is intended to help bridge that gap—keeping our workforce engaged and our economy stable until the next phase of mineral development is ready to come online.”
— Caitlin Cleveland, Minister of Industry, Tourism and Investment

Quick Facts:

• Diamond mines employ over 1,000 Northerners and contribute approximately 20% of the NWT’s GDP.
• Since diamond mining began in the NWT, more than $9.1 billion has been spent with Indigenous businesses and beneficiaries.
• NWT diamond mines pay property taxes directly to the GNWT—not municipalities. The temporary mill rate reduction applies only to the 2025 tax year. Mines are still required to pay the full adjusted amount for the 2025 tax year.
• The GNWT is working with interested Indigenous development corporations to pursue federal funding for winter road infrastructure that supports mine access. This includes exploring tolling options to offset construction and maintenance costs.
• The Large Emitter GHG Reducing Investment Fund was created from carbon tax revenues paid by the mines. The GNWT is removing restrictions on remaining balances and returning funds to contributing mines.
• These supports are temporary, limited to 2025–2026, and are not intended to sustain mining operations indefinitely or replace corporate financial obligations.

For media requests, please contact:
Cabinet Communications
Government of the Northwest Territories
PressSecretary@gov.nt.ca

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