‘Surprised and disappointed’: rebirth in unity trimmed NWT

As indigenous leaders and northern workers absorb this week’s shock in the Ekta Diamond Mine in the northwestern regions, industry supervisors say the scaling of operations in AT is a sign of the challenges faced by the diamond industry.

Dene national head George McKenzie said that job loss is going to affect the “big time” to the communities.

McKenzie said, “Some workers there have worked there for about 30 years.” They have bills, and they have to take care of their family, and being out of work is going to make a big impact on our community, in our area. “

The owner of the unity, Burgundy Diamond Mines, announced on Wednesday that it was Suspend the operation of open pit in unity and “closure several hundred employees and contractors.” The company is still mining at the underground site.

The Yelochenives Denne First Nation (YKDFN) chief said he was “very surprised and disappointed” by the trimming.

Chief Ernest Batesina said, “We have many members who work for years and years in unity, and I hope each of them will be given proper treatment with their seniority.”

Neither Batsina nor McCenzie can say how many YKDFN or Tłı̨chǫ citizens have lost their jobs. Batsina said that for the affected people, he is going to work to ensure that “how many years he has been serving in the actor”.

Johnny McCini is the Regional Vice President of the Kimberlite Division for the Union of Northern Workers (UNC). The UNC represents about 400 workers in the Etie.

He said that UND was told that about 160 of its members were closed, but the Sangh has not yet seen an official list.

All those workers are not necessarily northern.

“What we have been sure is that through the process of choosing those individuals that they are all considering IBA (“Impact advantage agreement) Keeping in mind the agreement and really trying to maintain northern numbers, “McCini said.

Union members are feeling a complete spectrum of emotions, McKini said: confused, depressed, upset, angry, indifferent and frustrated.

He said that any worker was given less than two weeks notice, he will get two weeks of salary. Workers will be placed on “recall” for the next 12 months, meaning that they do not get a break salary because they can be called back to work within that period.

But Bargandi has not offered the timeline to the Sangh.

Makkini said, “They have actually given us, once the diamond prices have a rebound, and once the cash flow has increased, and all these other things that they are looking at, it happens once, then they will remember,” said McCini.

He said that Burgundy is still seen complying with his collective agreement.

‘Mining is a very difficult business’

People monitoring the industry were less surprised by the news that Burgundy was stopping mining in the Ekt Point Lake Open Pit, which had gone into production earlier this year.

Paul Zimnici, an independent diamond industry analyst located in New Jersey, said many factors were likely to reduce operations.

He said that the diamond market has been weak for more than two years, with prices of 10 to 30 per cent from All-Time High in 2022, he said.

What’s more, Zimanici said, Diamond demand in China – the second largest consumer after the US – was more than 50 percent last year. Competition from lab-goose diamonds also puts pressure on the natural diamond market.

“So those three factors jointly gave rise to this long crisis in the last few years,” he said.

The first diamond mine of the single -size Canada is – production began in 1998 – and Zimanici said that the mines become affordable because they are with age.

Typically, he said, a company will quickly adopt its most profitable sources so that they can pay loans and costs by building their mines. Over time, the company will look for other opportunities to continue production, “but economics can be more challenging.”

He said that Point Lake was one of the first economic diamond-bearing kimberlites discovered in Canada, but it was one of the finals to go into production, which suggests that it was not suited as other deposits in the Ekti.

Zimnisky took a slow view of the future of Point Lake.

It is possible that Burgundy will resume the mining. If the prices of the diamond are cured, they said, but it will be difficult to maintain the equipment and resume all those workers.

“Mining is a very difficult business and I think it’s an example of this,” he said.

Karen Costeello, Executive Director, Northwest Territories and Executive Director, Nanavut Chamber of Mines, said that unity is a “true reflection” that is facing diamonds, between low prices, between low prices, the cost and challenges related to American tariffs have increased.

But that private NWT company has been encouraged by the recent acquisition of Arctic Blue Diamond WO Diamond Project controlling interestThe project includes eight mining leases and 53 km from unity, about 23 km from Diavic Diamond Mine.

In an update on Friday, Burgundy stated that it is “planned to release pre-inflammatory studies on the proposed development of Fox Underground as a long-term project.” It described Fox as a “high value per carat deposit”, which was finally mined in 2014.

The company plans to release a new mine scheme by the end of July.