A Hard Cut: How Diamond Mine Closures Are Shaping Canada's Mining Workforce
Introduction
Diamond mining has long been a source of economic opportunity and national pride in Canada. But recent downturns in global demand, pricing instability, and the rise of lab grown alternatives are forcing tough decisions across the country. For recruiters and mining professionals alike, the ripple effects are already being felt. This blog unpacks the closures, the causes, and what it means for the mining workforce going forward.
Diamonds Are Losing Their Shine
The global diamond market is facing significant headwinds. Prices have fallen sharply over the past two years, driven by inflationary pressure, shifting consumer preferences, and a dramatic increase in lab grown diamond sales. The traditional allure of natural diamonds is being challenged by a younger generation more focused on ethics, sustainability, and affordability (1)(2).
Rough Diamond Price Index vs. Market Share of Lab Grown Diamonds, 2015 to 2024
As shown in the graph above, rough diamond prices began declining around 2022, just as lab grown stones reached a meaningful share of the market. Today, they make up as much as 20 percent of global volume, while natural diamond values have plunged (3)(4)(5). This shift has had a direct impact on some of the most established diamond operations in North America.
Closures and Cutbacks: Who Is Affected
Canada’s Northwest Territories, once a symbol of modern Arctic resource success, has been hit hardest. All three major mines are either cutting back, struggling to remain open, or shutting down ahead of schedule:
Diavik Mine, operated by Rio Tinto, saw a 17 percent drop in production in 2024. Closure, originally expected in 2026, is now anticipated as early as late 2025 (6).
Ekati Mine has suspended open pit operations at Point Lake, leading to several hundred layoffs (7).
Gahcho Kué is still operating but is reportedly running at a loss and may face pressure to scale back (8).
The situation in Quebec has already tipped over. Renard Mine, Quebec’s only diamond operation, ceased activities in 2023 after entering creditor protection. It has since been sold and is being repurposed as a lithium processing facility (9).
These closures do not just represent lost revenue. They threaten entire employment ecosystems, especially in remote and Indigenous communities that have relied on mine based partnerships and skilled jobs for decades.
The Broader Workforce Impacts
With fewer diamond mines in production, companies are facing difficult decisions around downsizing, project deferrals, and reallocation of resources. Hundreds of positions, both operational and professional, are disappearing, putting seasoned engineers, geologists, metallurgists, and technical tradespeople back into the job market.
Governments are responding. The Northwest Territories, for instance, has committed millions to help support local mine operations during the downturn (10). But the long term solution likely lies in repositioning talent, and doing so quickly.
What This Means for Employers and Candidates
As Canada’s diamond sector winds down, the question is not just what is closing, but where that talent goes next.
For employers, this is an opportunity to bring on skilled professionals with northern experience, strong technical foundations, and the resilience that comes with operating under pressure. For workers, the shift is a chance to transition into other commodities, including gold, base metals, or lithium, where demand remains strong.
At Intelligenciia, we have already seen this dynamic play out in recent months. Candidates previously focused on diamond operations are now moving into consulting, contract work, or transitioning to high potential projects across Canada and abroad. We help both sides navigate this shift efficiently by drawing on our experience as a specialist mining recruitment agency in Canada.
Looking Ahead
Diamond mining may be fading from Canada’s production landscape, but the legacy of talent and innovation it created is far from over. The mining workforce is adapting, and so are we.
At Intelligenciia, we support both mining companies and professionals through transitions like this. Whether you are seeking to retain institutional knowledge through interim contractors, or looking to reposition technical talent after a closure, our deep sector knowledge and flexible approach make us the go-to recruitment partner for mining and natural resources. From executive search to site level support, we help you adapt with confidence.
References
Diamonds lose sparkle as lab grown alternatives gain ground, Financial Times.
Lab grown diamonds boom: Is it game over for mined diamonds?, Forbes.
Rapaport Diamond Price Index, Rapaport.
Lab grown diamonds market share vs natural diamonds, CaratTrade.
Swiss made high end lab grown diamonds, Wired.
Diavik still on course to wrap up in early 2026, says mine, Cabin Radio.
Ekati suspends Point Lake operations amid weak market, Mining News North.
Low diamond prices raise risk of early closure of NWT mines, Eye on the Arctic – RCI.
Renard diamond mine ceases activities and repurposed as lithium facility, Wikipedia.
NWT commits millions to help prop up its diamond mines, Cabin Radio.