Disrupted by competition from synthetic diamonds and the slowdown in major markets, natural diamond production has lost momentum, with mine closures becoming unavoidable. As one of the world’s biggest diamond producers, Canada is under severe pressure.
Canada’s diamond mines are regularly cited as a model of responsibility within the diamond industry. Many articles and reports have been published highlighting the importance of diamond-mining activity for regional development, the well-being of local populations and wildlife protection. Site closure planning is therefore a commitment that the government closely monitors.
In March 2025, Rubel & Ménasché’s La Lettre echoed the Canadian model by publishing reports from the World Diamond Council and Natural Diamond Council dedicated to Canadian diamonds.
A major human, economic and environmental challenge
Scheduled for spring 2026 (with Ekati and Gahcho Kué expected to follow in 2031 and 2040, respectively), the end of operations at the Diavik mine is putting the previously prepared ‘responsible closure’ and rehabilitation plans to the test.
Rio Tinto has operated the Diavik site since 2003, but only acquired full ownership in 2021. Its CEO Sinead Kaufman stated at the time that the company would take on the eventual closure of Diavik “in a safe and responsible way,” in agreement with local community partners and the government.
According to Canadian newspaper NNSL, Rio Tinto’s contribution to the regional economy through Diavik has been highly positive. It has invested $7.7 billion in local businesses and $3.9 billion in indigenous companies, creating roughly 530 jobs and generating $1.27 billion in salaries and benefits since 2003. Rio Tinto has also donated $500,000 to the Yellowknife Community Foundation and will provide scholarships until 2050. The economic weight of diamond-related mining activity in the region is such that the closure and rehabilitation plans that were planned well in advance have received special attention. Residents still bitterly remember the abandoned gold mines that left them without any form of compensation. The Canadian government had to shoulder the enormous cost of cleaning up the sites ($4 billion for the Giant mine alone).
Commitments put to the test
The authorities and representatives of the local population have worked together to consult on major issues such as backfilling the pits, rehabilitating tailings ponds, protecting wildlife, monitoring the lake water (which will continue until 2050; the mine lies beneath the waters of Lac de Gras) and helping the 500 employees still on-site to transition to new jobs. The future of the all-weather road, usable even in mid-winter and costing millions of dollars a year to operate, is also central to the talks. Essential for mine operations, this road is also used for transporting goods and people.
Discussions are still ongoing. These discussions are drawing intense scrutiny internationally, because this complex and unprecedented process could well become a reference model for future mine closures. Rio Tinto is not only risking a significant part of its reputation here. Its commitments and actions will radiate throughout the entire diamond sector, where issues of transparency and responsibility receive particularly high media attention.