DiamondBuzz
Canada Announces Tax Relief to Support Struggling Diamond Sector in Northwest Territories
Government steps in with targeted financial measures to stabilize region’s largest industry amid falling prices and market uncertainty.
The Canadian government has introduced a series of tax-relief measures aimed at supporting the diamond-mining sector in the Northwest Territories, as the industry faces mounting financial challenges. The initiative seeks to preserve economic stability in a region where diamond mining contributes approximately 20% of its GDP, with major operations including Diavik, Ekati, and Gahcho Kué.
According to the Government of the Northwest Territories, the sector is currently under pressure from low global diamond prices, inflation, supply-chain disruptions, and emerging tariff impacts. These conditions have led to significant losses for mining companies. Mountain Province, co-owner of Gahcho Kué with De Beers, reported a $56.4 million net loss in 2024, while Ekati’s owner Burgundy Diamonds lost $94.7 million and Diavik operator Rio Tinto reported a $127 million underlying loss.
To address these issues, the government will double the number of local diamond valuations in 2025 and 2026, covering associated costs to help producers move rough stones to market more efficiently. A temporary reduction in the minerals tax rate will result in $11.2 million in property tax savings for the three mines. Additionally, funds previously set aside for carbon tax contributions will be released to ease cash flow constraints.
The government will also collaborate with Indigenous governments and development corporations to offer further infrastructure and transitional support.

“This is about protecting our economy from sudden shock,” said Caroline Wawzonek, minister of finance for the Northwest Territories. “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 [the diamond] sector. Our government’s support must be directed to ensuring that Northwest Territory-based labor and businesses are protected in this challenging operating environment.”
DiamondBuzz
De Beers Group Sets Out Portfolio and Organisational Actions to Support Long-Term Value Creation
Company outlines strategic cost optimisation, portfolio streamlining and operational changes to strengthen resilience while positioning for long-term growth in the natural diamond industry.
De Beers Group is advancing delivery of its business streamlining by setting out a number of planned portfolio and organisational changes to ensure an efficient cost base that strengthens resilience in the near-term while enhancing future competitiveness and retaining optionality as industry conditions improve.
Since 2024, De Beers has been streamlining its business in line with its Origins strategy to reduce costs, divest non-core assets and prioritise investment in activities that create the most value. Significant progress has been made, with more than $100 million of annual overhead costs removed from the business, the sale or closure of a number of non-core assets and significant capital and cost reconfigurations to asset expansion projects.
Simultaneously, De Beers has reinvested in natural diamond category marketing to support the industry’s efforts to grow natural diamond demand, launching new large-scale campaigns and collaborating with key stakeholders across the value chain to foster industry-wide investment. Global consumer demand for natural diamond jewellery returned to growth in 2025, while natural diamond sales increased across US independent jewellers in 2025 and into Q1 2026, led by higher value diamonds and those promoted by De Beers’ Desert Diamonds marketing campaign.
On the supply side, global rough diamond production is now decreasing, with several producers closing mines during 2026. Whilst the increasing rarity of diamonds and the emerging signs of improvement in consumer demand are likely to support longer-term value creation, rough diamond trading conditions are expected to remain challenging in the near-term due to cyclical and industry-specific factors.
Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project. This will involve critical infrastructure investment to enhance the capacity and efficiency of the mine, with the intention to support future production growth as business and industry conditions improve.
De Beers is engaging with stakeholders in accordance with relevant requirements and the company’s values as it moves through this process, and will both support impacted employees and continue to invest in its community and Social and Labour Plan commitments.
This proposed action at Venetia Mine follows the decision earlier this year to pause the Tuzo Phase 3 expansion project at the Gahcho Kué Mine in Canada.
In parallel, De Beers plans to reconfigure its global operating model to refocus and prioritise resources on the core operational businesses and reduce its central corporate cost base.
Al Cook, CEO of De Beers Group, said:

“In line with our commitment to focus and streamline our business, we are making a number of changes to De Beers to ensure greater business resilience in the near-term, while supporting long-term value creation. We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds.
Global rough diamond supply is falling, bringing more support to the market. The changes we are making to our business are focused on underpinning our efficiency now and into the future, favourably positioning De Beers in its leadership role.”
De Beers Group will maintain current production levels through its other operations, and previous production guidance remains unchanged.
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