Rio Tinto not interested in any part of Dominion Diamond Mines – by Richard Gleeson (CBC News Canada North – July 6, 2020)

https://www.cbc.ca/news/canada/north/

The company thought to be the most logical to partner with or purchase Dominion Diamond Mines is not interested in the troubled diamond company.

In a recent affidavit, former Dominion CEO and former N.W.T. cabinet minister Brendan Bell says Dominion’s partner in the Diavik diamond mine — Diavik Diamond Mines Inc., a subsidiary of global mining giant Rio Tinto — is the most obvious candidate to purchase Dominion’s 40 per cent stake in the Diavik diamond mine and also to purchase the Ekati mine, which Dominion owns 90 per cent of.

Dominion is in the process of restructuring or being sold, having been granted creditor protection in April.

The company says the COVID-19 pandemic choked off its cash flow leaving it unable to meet loan payments and other obligations, such as covering 40 per cent of the cost of operating the Diavik mine.

In his June 12 affidavit, Bell said with Diavik just 40 kilometres from Ekati, there’s an opportunity to combine operations as well as reclamation activities to reduce costs.

For the rest of this article: https://www.cbc.ca/news/canada/north/rio-tinto-not-interested-dominion-diamond-mine-1.5636874

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