Mountain Province Diamonds is giving up its 49 per cent ownership stake in the Gahcho Kué diamond mine in the Northwest Territories, handing full control of the operation to majority owner De Beers Canada.

The Toronto-based company announced that the restructuring agreement will release it from its financial obligations and liabilities related to the mine, while preserving an option to regain an ownership interest in the future.

Mountain Province president and CEO Jonathan Comerford said the decision follows an extensive review “of the alternatives available to the company against the backdrop of a material decline in diamond prices over the past year, driven in the main by tariff-related uncertainty and the conflict in the Middle East.”

Gahcho Kué opened in 2016 as a joint venture between Mountain Province and De Beers. It is now the N.W.T.’s last operating diamond mine following the closure of Rio Tinto’s Diavik mine and the Ekati mine, which has entered receivership.

The move comes as the territory’s diamond industry faces mounting pressure. Gahcho Kué is currently scheduled to close in 2028, while a planned expansion was delayed earlier this year, and discussions were held about reducing its workforce.

According to CBC News, De Beers said it will focus on safely and sustainably operating the mine through its remaining life and eventual closure.