Canada’s oldest diamond mine, Ekati, will cease operations by mid-August after efforts to find a buyer or new investment failed, marking another setback for the country’s natural diamond industry.

The Government of the Northwest Territories applied to the Supreme Court of British Columbia on July 13 to place the mine into receivership and wind down operations. The court approved the request the following day after determining the mine’s owner, Burgundy Diamond Mines Ltd., had exhausted its funding options.

Burgundy and its subsidiary, Arctic Canadian Diamond Company Ltd., entered creditor protection under the Companies’ Creditors Arrangement Act in May while seeking to restructure the business and secure a buyer or investor. However, an eight-week sales and investment process concluded without any viable offers.

Court documents show Burgundy owes approximately $175 million to the Canada Enterprise Emergency Funding Corporation and a further $79 million to other lenders. With no additional financing available, the company is expected to run out of funds.

PricewaterhouseCoopers has been appointed receiver and will oversee the orderly closure of the mine over the next five weeks. The site will then be transferred to the Government of the Northwest Territories, which will begin environmental remediation and reclamation.

Ekati has operated for about 28 years, employs 360 people, and is one of only two diamond mines in Canada.