Burgundy Diamond Mines, an Australian-based company, has successfully concluded the acquisition of the renowned Ekati Diamond Mine in Canada’s Northwest Territories. The purchase, valued at $150 million US, marks a new chapter for the mine and sets the stage for future growth and development. With a focus on extending the mine’s lifespan and expanding mining job opportunities, Burgundy Diamond Mines is poised to make a significant impact in the diamond industry.
The transaction, finalized on July 4th, 2023, involved the transfer of 100 percent of the Arctic Diamond Company Limited shares to Burgundy Diamond Mines. This change in ownership makes Burgundy the third company to possess the Ekati Diamond Mine since 2017. The company is eager to leverage its expertise and resources to extend the mine’s operational life and drive economic benefits for the region.
Kim Truter, Chief Executive Officer of Burgundy Diamond Mines, expressed enthusiasm about the acquisition, highlighting the company’s commitment to maximizing the mine’s potential. Truter stated, “We believe in the long-term viability of the Ekati Diamond Mine and its contribution to the local economy. Our goal is to extend the mine’s lifespan, create employment opportunities for the local workforce, and continue generating royalties and taxes for the region.”
Prior to the sale, the Ekati Diamond Mine was owned by Calgary-based Arctic Canadian for the past two years. The previous owner, Dominion Diamond Mines, had filed for insolvency protection. Despite the frequent changes in ownership, Truter expressed confidence in Burgundy Diamond Mines’ ability to propel the mine forward, citing the company’s alignment with the mine’s objectives and future vision.
The Ekati Diamond Mine, known for its high-quality diamond production, had faced speculation about potential closure as early as 2024. However, Burgundy Diamond Mines is optimistic about extending the mine’s lifespan for “many, many” years to come. Truter explained that exploring additional mining areas, including underground methods and reevaluating old pipes, could be key factors in achieving this goal.
The acquisition of the Ekati Diamond Mine positions Burgundy Diamond Mines as a fully integrated global-scale diamond company. With the ability to trace the entire diamond value chain, from mining to marketing, Burgundy prioritizes ethical and sustainable practices. The company is dedicated to engaging with local communities, Indigenous partners, and government officials to ensure responsible resource development and create a mutually beneficial future.
As Burgundy Diamond Mines takes the reins of the Ekati Diamond Mine, the company aims to make a positive impact on the local economy by providing employment opportunities and driving economic growth. The acquisition sets the stage for Burgundy to realize its innovative business model, which focuses on sustainable and valuable natural diamonds sourced responsibly from Canadian mines.
The successful completion of the acquisition reaffirms Burgundy Diamond Mines’ position as a leader in the diamond industry, and the company is poised to make significant contributions to the global diamond market.