Australian miner Burgundy Diamond Mines laid off several hundred employees and contractors and suspended operations at its Point Lake diamond mine in Canada due to record-low diamond prices, a company spokesperson said on Thursday.

The Point Lake site in Canada's Northwest Territories is part of the company's Ekati mine. Burgundy said its other site in the remote Arctic region is still operating.

"Burgundy Diamond Mines made the decision to temporarily suspend open pit mining at Point Lake, which constitutes a shift from surface mining operations in the short term," said Ariella Calin, corporate communications manager at Burgundy Diamonds.

With global diamond prices at record lows, the Point Lake project is proving to be sub-economic. Mining operations at the Misery underground mine, Calin said, are unaffected.

Northwest Territories is home to three diamond mines: Diavik, owned by Rio Tinto, De Beers' Gahcho Kue; and Burgundy's Ekati.

As falling diamond sales globally have reduced profitability, companies are trying to stay afloat or are suspending their operations. Rio Tinto has planned a closure of its Diavik mine in early 2026. De Beers owner Anglo American is looking to spin off its entire diamond business.

Burgundy halted trading at the Australian Stock Exchange (ASX) pending an operational update from the company.

Production rates at Misery have significantly improved in recent months, and Burgundy will provide a quarterly production update toward the end of July, Calin said.

As Canada's diamond mines reach the end of their productive life, the NWT community has been pitching for projects and asking for infrastructure improvements to replace future job losses.

"The Northern mining industry has been around for over 90 years," said Karen D. Costello, executive director at NWT & Nunavut Chamber of Mines. "And it has been recognized that we do have incredible mineral potential, but we do need robust exploration to make the discoveries, and we do need the known projects to advance to become the next generation of minds."