The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - October 23, 2024
In its 26 years, Ekati has provided billions in local economic impact, driven by sustainable mining practices, job creation, and community investments across Northwest Territories.
Burgundy Diamond Mines Ltd. Oct. 22 announced the historic milestone of 100 million carats of diamonds produced at the Ekati mine over 26 years of operation in Northwest Territories, Canada.
As Canada's first diamond mine, Ekati has long established itself among the world's top diamond producers since its discovery in 1991 by geologists Chuck Fipke and Stewart Blusson.
Officially opened in 1997 under BHP Billiton's management, this sub-Arctic operation in northern Canada has maintained near-steady production 24 hours a day, seven days a week, 365 days a year for almost three decades, in spite of changing hands multiple times over the years.
However, the honor of announcing 100 million carats goes to Burgundy Diamond Mines, which acquired Ekati in 2023 and now steers its legacy toward another 100 million.
"As we reflect on this historic achievement, Ekati continues the legacy as one of the premier diamond assets in the world in a tier one location producing highly sought after sustainably and ethically produced diamonds for the global market," said Burgundy Diamond Mines CEO Kim Truter.
Ekati has been a cornerstone of economic growth for Canada's Northwest Territories since before it officially broke ground, delivering substantial socio-economic benefits over nearly three decades.
From 1996 to 2023, the mine has generated over 74 million man-hours of employment in NWT, with approximately 35 million of those coming from over 16,000 positions held by Indigenous workers, showcasing a continued commitment to local job creation.
Producing an average of four to five million carats of diamonds annually, the mine has generated nearly $16 billion in local economic activity through expenditures on goods, services, and infrastructure from suppliers across the territory, with over $7 billion channeled directly to Indigenous businesses.
Beyond direct economic impacts, the mine has provided hundreds of millions in community investments, such as Impact Benefit Agreement payments, scholarships, and wellness initiatives, which have been further complemented by billions in taxes and royalties, underlining Ekati's role as a pivotal contributor to the region's economic and community development.
"We are proud of the team we have in place and of everything we have achieved so far," said Truter. "Ekati still has 140 million carats remaining in Indicated Mineral Resources, one of the largest unmined diamond endowments in the world, which provides Burgundy shareholders an indication of Ekati's remaining mine life potential."
Looking ahead, Burgundy remains focused on not just maintaining but expanding Ekati's legacy by actively exploring opportunities for mine life extension, including the development of the Misery underground extension, Sable underground, and Fox high-value stockpiles, as well as potential growth at the Point Lake open pit and other undeveloped resources on the property.
"We are looking forward to reaching future major milestones under Burgundy's leadership, and continuing to make strides in operational performance, cost reduction strategies, mine life extension work, and innovative sales and marketing strategies," added Truter.
As Burgundy sets its sights on the future, the company is determined to sustain Ekati's place as a Canadian premier diamond asset while driving further economic growth and community benefits across the Northwest Territories.
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