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.

Published

1 year ago

April 26, 2025

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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.”

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DiamondBuzz

Global Diamond Consortium Announces Agreement To Acquire Anglo American’s Stake In De Beers In Landmark $1 Billion Transaction

Consortium Commits An Additional $500 Million Post-Acquisition Capital Injection and Enters Strategic Dialogues With The Government Of Botswana.

Published

1 week ago

July 31, 2026

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The Global Diamond Consortium, a strategic partnership comprising the governments of Namibia and Angola alongside leading global diamond traders, today announced an agreement to acquire Anglo American’s equity stake in De Beers.

Key Transaction Terms & Reinvestment Strategy

Under the terms of the agreement:

Initial Consideration: The consortium will pay $750 million upfront upon closing.
Deferred Consideration: An additional $250 million will be paid in subsequent installments, bringing the total transaction value to $1 billion.
Post-Acquisition Capital: The consortium has committed to injecting approximately $500 million in fresh capital directly into De Beers following the acquisition to stabilize operations and fuel long-term operational initiatives.

Navigating Market Dynamics

The acquisition marks a pivotal turning point for De Beers, which has faced significant broader market downturns in recent years. After reaching a peak valuation of $17.6 billion in 2001, De Beers’ reported book value adjusted to $2.3 billion earlier this year. The consortium’s capital injection aims to position the iconic diamond producer for renewed stability and sustainable value creation across the global supply chain.

Strategic Regional Collaboration

Central to the transition is the consortium’s commitment to producer-nation equity and strategic alignment. In addition to the direct participation of the governments of Namibia and Angola, the consortium is actively negotiating with the Government of the Republic of Botswana.

Botswana, which currently holds a 15% stake in De Beers, has expressed a formal intent to increase its ownership share as part of the strategic restructuring.