Transaction gives the US-based buyer full ownership of Canada’s Ekati diamond mine and a 40% stake in Diavik, which is operated by Rio Tinto.
EKATI Mining News
A preliminary economic assessment (PEA) of the Ekati mine in Canada's Northwest Territories has the iconic diamond operation staying open seven more years.
The US company plans to operate Dominion as a standalone business, appointing a new chief executive based in Canada.
The project, called Misery Deep, will require an investment of $6 million in 2018, $69 million in 2019 and $19 million in 2020.
Dominion Diamond Corporation today provided an update on its renewed strategic focus on greenfield exploration activities at the Ekati Diamond Mine, Diavik Diamond Mine and other properties in the Lac de Gras region in the Northwest Territories in Canada.
The company has repeatedly offered to engage with Washington Corp on "customary terms," according to Chairman Jim Gowans, but that has not happened.
Strategy is part of Dominion's goal of securing the best deal possible for all its shareholders.
It has acquired the 50% interest French luxury goods group LVMH had in De Beers Diamond Jewellers for an undisclosed amount.
Montana-based Washington Co is offering 36% above the closing price of the Canadian miner’s shares on Friday.
Gahcho Kué, owned by De Beers Canada and Mountain Province Diamonds, is expected to produce around 54 million carats of rough gems over its 12-year lifetime.
The 67.87-carat gem quality octahedron diamond, unearthed during production ramp-up, is the largest of its kind recovered to date at the remote mine.
More than 500 unionized workers are expected to ratify the agreement in an upcoming vote scheduled for March.
Brendan Bell, who has also resigned to Dominion's board, has agreed to stay on as CEO until June 30 to ensure a smooth transition.
Global rough diamond production will reach its peak in only three years before entering into a supply deficit by 2020, two separate reports show.
Suit claims company failed to report mercury levels at five of nine water monitoring stations near Victor mine.
Company says it was forced to lay off employees from across the business given "current market conditions."
The world’s top diamond producer by value said results were in line with expected seasonal demand patterns.
The move comes on the heels of a similar decision by De Beers Canada, which moved its headquarters from Toronto to Calgary in July.
Still, the world’s biggest diamond producer by value said the auction was better than it had expected.
Gahcho Kué, a joint venture between De Beers Canada (51%) and Mountain Province Diamonds (49%), is expected to inject $5.2bn into Canada’s economy.
De Beers, the world's biggest diamond producer, warns that many of the challenges affecting the industry last year are likely to continue over the next decade.
Gahcho Kué, co-owned by De Beers Canada and Mountain Province Diamonds, is also expected to provide 1,200 new jobs.
The Chidliak mine, in Canada’s Nunavut, is expected to produce around 12 million carats during its 10-year lifespan.
The move comes as the company readies to open what it calls the world’s biggest diamond mine currently under construction.
Developing the Jay pipe will help keeping the mine in production until 2033.