“Burgundy has made this difficult decision after taking to heart all the comments and feedback provided during the application process,” it wrote to the CBC on Tuesday, adding that it could revisit the project in the future after incorporating feedback from the Tłı̨cho government.
On the same day, the company sent a letter to NWT Premier R.J. Simpson that called for numerous changes to regulations it says “are getting unnecessarily more onerous,” according to the CBC report. These “inflexible” regulations, according to Burgundy, are the only thing keeping Ekati from operating until at least 2040, the report adds.
The decision to pull its application for the Sable underground project and sending the letter came a day before it was scheduled to take part in a public hearing, which has been cancelled.
Earlier this year, the company told CBC that “the financial viability and sustainability” of its business are at risk without the Sable underground project, given that two of its three other kimberlite sources at the Ekati mine are ending in the next few years. These include the Sable open pit, which is winding down this year, and the Point Lake open pit in 2029.
However, recently drilling at the main Misery orebody has suggested that the Ekati mine life could extend as far as 2040, the company says.
Burgundy bought the mine in 2023, but since then, it has faced financial pressured due to headwinds in the global diamond market.
