Dominion moves headquarters to Calgary in cost-cutting effort
Canada’s Dominion Diamond (TSX, NYSE: DDC) is packing up its Yellowknife headquarters and heading to Calgary, as part of a cost-cutting move that will leave about 100 unemployed, but that will save the firm $19 million a year.
The diamond producer, which runs the Ekati mine and owns 40% of Diavik mine northeast of its current head office in Yellowknife, said 75% of its annual savings will come from lower labour costs, while the rest will come from reduced office rents, among other savings.
“Although this was not an easy decision, it is necessary to support the long-term strength and viability of our operations,” Brendan Bell, chief executive at Dominion, said in the statement.
Over the past year, Dominion has been hit by weak global diamond prices, as well as sudden challenges, including the death of the company’s founder, Robert Gannicott, and a fire at Ekati Mine which suspended processing for three months and cost the miner around $20 million in repairs.
Dominion’s move follows a similar decision by De Beers Canada, which moved its headquarters from Toronto to Calgary last July.
Operations at Ekati will continue uninterrupted, and development of the Jay deposit, about 25 km from the mine, will also be maintained, the company said.
The relocation is expected to be completed by mid-2017.