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Minister Cleveland calls for expanding economy after Gahcho Kue disruption
Work on the Gahcho Kue Mine's Tuzo Phase 3 project has been paused, leading Minister Cleveland to worry about the NWT's reliance on mining
Following a surprising announcement regarding the Gahcho Kue Mine, Minister Caitlin Cleveland calls for greater diversity in the NWT economy.
In a corporate update provided late on Monday evening, Mountain Province Diamonds, the Canadian diamond company that works in partnership with De Beers to run Gahcho Kue, revealed that they would be pausing the Tuzo Phase 3 project.
Mountain Province states that this decision was made after “careful assessment of the project’s economics” and is a reaction to the mining market environment, though they claim to remain committed to keeping the mine in operation and that this pause will not impact carat production in 2026.
Minister Cleveland is concerned for the mine workers, their families, and the Northern businesses and communities that will be affected by even minor disruptions to the mine’s operating timeline.
“The mine is not closing immediately, and near-term impacts are expected to be limited. But this decision reflects how challenging conditions in the global diamond market have become. Prices are weak, costs are high, and companies are having to make difficult calls. While the GNWT cannot control global markets, we take responsibility for how the impacts are managed here at home. To that end, we will ensure worker and business supports are visible and accessible, and we will continue to expect employers to meet their obligations under NWT labour standards if there are job impacts.”
Minister Cleveland feels that this announcement also highlights another economic hurdle that the Territory must face, that being the over-reliance on the mining industry. She explains that while mining for diamonds has been an undeniable pillar of the NWT’s economy, the slow decline in its strength serves as a wakeup call to look to other options.
“Over the past year, our government has taken targeted steps to support stability in the diamond sector and protect Northern jobs during a period of global market disruption. At the same time, we are focused on building what comes next by improving regulatory efficiency, supporting exploration, and advancing strategic infrastructure that lowers costs, creates new economic opportunities, and unlocks future projects.”
