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
Dholakia Lab Grown Diamond Secures Over Rs 800 Crore Funding
Funding Earmarked For High-Impact Vertical Scaling and Infrastructural Fortification
Dholakia Lab Grown Diamond (DLGD) has successfully executed a definitive investment agreement, securing over Rs 800 crore in a premier growth-stage funding round. This transaction represents one of the most significant capital injections within India’s Lab-Grown Diamond (LGD) ecosystem. The consortium was led by Abakkus PE, with strategic participation from ICICI Ventures IAF5, Amal Parikh, and a syndicate of high-profile institutional investors.
The newly mobilized liquidity is earmarked for high-impact vertical scaling and infrastructural fortification, specifically:
- Production Augmentation: Substantial investment in high-throughput growing technology to meet burgeoning global demand.
- Liquidity Management: Strengthening the working capital framework to support expansive operational cycles.
- Retail Proliferation: Accelerating the strategic rollout of a comprehensive pan-India retail footprint to capture domestic market share.
In a pivot toward high-margin industrial applications, DLGD is leveraging its proprietary synthesis capabilities to produce high-precision single-crystal diamonds. This initiative positions the firm as a critical component supplier for cutting-edge sectors, including:
- Quantum Computing & Semiconductors: Utilizing diamond’s superior thermal conductivity and electronic properties.
- Defense & Optics: Engineering specialized materials for high-stress aerospace and optical environments.
- Thermal Management: Providing heat-dissipation solutions for next-generation hardware.
Leveraging the multi-decade heritage of the Hari Krishna Group, DLGD maintains a robust, fully integrated value chain. This end-to-end oversight—encompassing synthesis, precision polishing, jewelry artisanal manufacturing, and international distribution—solidifies its competitive advantage in the sustainable luxury corridor.
As a pioneer in the sector, DLGD’s early-mover advantage—evidenced by its successful penetration of the US retail market as early as 2018—provides a seasoned foundation for its current expansion. By bridging the gap between luxury aesthetics and deep-tech utility, DLGD is poised to redefine the economic landscape of synthetic carbon structures on a global scale.
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