https://www.miningnewsnorth.com/
In a deal that bolsters certainty for the future of the Diavik Mine and Northwest Territories’ economy, Rio Tinto has acquired full ownership of this iconic diamond operation in Canada’s Arctic.
Rio Tinto’s 40% partner in Diavik, Dominion Diamond Mines, filed for insolvency protection under the Canadian Companies’ Creditors Arrangement Act at the height of the COVID pandemic in 2020.
“The CCAA filing was necessitated primarily by the impact of the COVID-19 pandemic,” Dominion Diamond Mines penned in an April 2020 statement. “Although the company has strong diamond inventory, sorting houses and diamond markets are closed. These are key channels to facilitate the sale of the company’s inventory, so currently there is no ability to generate sufficient revenue to support Dominion’s ongoing financial obligations.”
The bankruptcy of one of the Diavik Mine owners added further uncertainty for Northwest Territories, which was already reeling from the financial blow to an economy driven largely by its diamond mining sector.
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