As the largest city in the Northwest Territories, Yellowknife is the hub for mining, industry, transportation, communications, education, health, tourism, commerce, and government activity in the territory. Historically, Yellowknife's economic growth came from gold mining, and later government; however, because of falling gold prices and increased operating costs, the final gold mine closed in 2004, marking a turning point for Yellowknife's economy.
After a downturn in the 1990s during the closure of the gold mines and the downsizing of the government workforce in 1999, Yellowknife's economy has recovered, largely because of the diamond boom; the Ekati Diamond Mine, owned and operated by BHP Billiton, opened in 1998. A second mine, Diavik Diamond Mine, began production in 2003. Production from the two operating mines in 2004 was 12,618,000 carats (2,524 kg; 5,564 lb), valued at overC$2.1 billion. This ranked Canada third in world diamond production by value, and sixth by weight. A third mine, De Beers' Snap Lake Diamond Mine, received final approval and funding in 2005 and went into production in 2007.De Beers also applied in 2005 for a permit to open the Gahcho Kue Diamond Mine Project on the property formerly known as Kennady Lake. Upon receipt of approval, construction is expected to start in 2010 and the mine will reach full production by 2012. As well, growth and expansion in natural gas development and exploration sectors has contributed to this growth. Economic growth in the Northwest Territories was 10.6% in 2003.
The major employers in Yellowknife include: the Territorial Government, the Federal Government, Diavik Diamond Mines Incorporated (a subsidiary of Rio Tinto Group)/Harry Winston Diamond Corporation, BHP Billiton, First Air, NorthwesTel, RTL Robinson Trucking, and the City of Yellowknife. Government employment accounts for 7,644 jobs, a large percentage of those in Yellowknife.
During winter, the Tibbitt to Contwoyto Winter
