Burgundy Diamond Mines, the owner of the Ekati diamond mine in Canada’s Northwest Territories, has halted its plans for underground mining at the Sable open pit following feedback from local communities, as reported by CBC.
This week, the ASX-listed company withdrew its application to the Wek’èezhìı Land and Water Board, which classified the Sable underground development as a “major mining project” requiring approval from the Tłı̨chǫ people, a Dene First Nations group.
In a statement to CBC on Tuesday, Burgundy explained that the decision was made after carefully considering the comments and feedback received during the application process. The company expressed openness to revisiting the project in the future, contingent upon integrating feedback from the Tłı̨chǫ government.
On the same day, Burgundy sent a letter to NWT Premier R.J. Simpson, requesting various changes to regulations that the company deems “unnecessarily onerous.” According to the CBC report, Burgundy argues that these “inflexible” regulations are the primary barrier preventing the Ekati mine from operating until at least 2040.
The withdrawal of the Sable underground application and the letter to the Premier were both issued a day before a public hearing that has since been canceled.
Earlier this year, Burgundy had indicated to CBC that the “financial viability and sustainability” of its operations were jeopardized without the Sable underground project. The company noted that two of its three remaining kimberlite sources at the Ekati mine are nearing depletion, including the Sable open pit, which is expected to wind down this year, and the Point Lake open pit by 2029.
However, recent drilling at the main Misery orebody suggests that the life of the Ekati mine could potentially extend to 2040, according to company statements.
Burgundy acquired the Ekati mine in 2023 but has since faced financial challenges due to unfavorable conditions in the global diamond market.
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