Navigating the Future: Northwest Territories at a Crossroads

The remote landscape of Canada’s Northwest Territories has long sparkled with diamond-driven prosperity. For nearly three decades, the territory’s economic heartbeat has been synchronized with the rhythm of massive mining operations extracting some of the world’s most coveted gems from beneath the tundra. These operations transformed the region, creating thousands of jobs, generating billions in economic activity, and establishing the territory as a global diamond producer. But today, as the Northwest Territories faces the impending closure of three major diamond mines—Diavik, Gahcho Kué, and Ekati—a profound question hangs in the arctic air: What comes next for this resource-dependent region and its people?

The diamond boom that began in the 1990s brought unprecedented change to this vast northern territory. Communities that had traditionally relied on government employment, tourism, and traditional harvesting suddenly found themselves connected to the global luxury market. Indigenous communities signed impact benefit agreements, young people found high-paying jobs without leaving the North, and the territorial government enjoyed resource royalties that helped fund public services across a jurisdiction nearly twice the size of Texas but home to fewer than 45,000 people. The mines became not just economic engines but symbols of northern potential—proof that this challenging frontier could participate in the global economy while maintaining its unique cultural identity and environmental standards.

Now, that diamond-studded chapter is reaching its conclusion. The mines, always understood to have finite lifespans, are approaching the end of economically viable extraction. Diavik is scheduled to cease operations in 2025, with Gahcho Kué and Ekati following within the decade. The economic implications are sobering: thousands of direct and indirect jobs at risk, supply chains disrupted, and government revenues threatened. For communities like Yellowknife, the territorial capital, the transition represents not just financial uncertainty but an existential challenge to its identity as a modern resource town. Indigenous governments that have built capacity and programs around mining revenues now face difficult decisions about sustainable futures beyond diamonds.

This transition occurs against a backdrop of complex challenges and opportunities. Climate change is transforming the Arctic faster than any other region on Earth, altering traditional ways of life but potentially opening new economic possibilities through increased accessibility. The territory possesses rich deposits of critical minerals essential for green technology—including lithium, cobalt, and rare earth elements—potentially positioning it for a role in the clean energy transition. Tourism was growing steadily pre-pandemic, with visitors drawn to spectacular northern lights, pristine wilderness, and unique cultural experiences. Meanwhile, infrastructure projects like the Taltson Hydroelectric Expansion and improved broadband connectivity could address longstanding barriers to economic diversification. Indigenous governments are increasingly assertive in determining development on their traditional lands, bringing both new constraints and partnerships to economic planning.

The path forward requires reimagining what prosperity means in this northern context. Territory leaders speak of building a “knowledge economy” by investing in post-secondary education through the nascent polytechnic university, allowing northerners to develop innovations suited to arctic realities. Conservation economies that create jobs through environmental stewardship rather than resource extraction are gaining traction, particularly through Indigenous Guardian programs that monitor lands and waters. The territory’s unique position and expertise in cold-climate technology and sustainable northern development could become valuable exports in a warming world. Some communities are exploring renewable energy projects that could reduce the crippling cost of diesel-generated electricity while creating long-term employment. These diverse approaches reflect a growing recognition that the next chapter may not revolve around a single industry but rather a mosaic of smaller, more sustainable economic activities rooted in northern realities.

The diamond mines’ legacy is complex—they created wealth but also dependencies, they provided opportunities but also reinforced boom-bust cycles familiar to resource regions worldwide. As the Northwest Territories navigate this transition, the fundamental questions extend beyond economics to identity and self-determination: What kind of North do residents want to build? How can prosperity be defined in ways that honor both tradition and innovation? Can development occur without repeating historical patterns that often left northern communities as mere resource suppliers to southern markets? The answers will emerge not from boardrooms in Toronto or Ottawa but from the communities themselves—from Elders who remember life before diamonds, from young people imagining futures beyond extraction, and from leaders working to translate northern potential into northern prosperity. In this vast territory where diamonds once symbolized opportunity, the most valuable resource may prove to be the resilience, creativity, and determination of northerners themselves as they craft their post-diamond future.