Arctic Canadian Diamond Company Files for Creditor Protection Citing 74% Diamond Price Drop

Arctic Canadian Diamond Company, a Calgary-based subsidiary of Australian mining company Burgundy Diamond Mines, filed for creditor protection after citing an inability to pay its bills. The court granted legal protection until at least May 11, shielding the company from creditor actions or asset seizures.

In 2024 the mine employed about 700 workers, with 28 percent northern residents and 60 percent of those Indigenous. By March 31 the workforce had shrunk to about 340 employees. The company generated more than $600 million in diamond sales in 2024 but revenue fell to about $253 million the following year.

Diamond prices declined from around $125 per carat at the end of 2024 to around $33 by December 2025, according to Brent Mierau, the company's corporate secretary and financial head. Mierau attributed the fall to lab-grown alternatives, reduced purchases from China, and tariff-related impacts.

The petition warned that without stabilization the company could not meet obligations to employees, contractors, and suppliers. Arctic Canadian received a $175 million loan from the Canadian federal government in December to sustain operations and protect jobs.

This funding came in stages: $115 million initially, with the remaining $60 million contingent on raising at least $25 million in new equity by the filing date.

The documents did not specify whether that equity was secured. In November the Northwest Territories government paid around $2 million to cover interest on a short-term bridge loan from private lenders while awaiting federal aid. The company owes about $107 million to private lenders and $63 million to trade creditors.

It negotiated forgiveness of around $18 million in debts. Total liabilities across the group amount to around $655 million.