Troubled Dominion sells Canada’s first diamond mine

John Jeffay

Dominion Diamond Mines, which filed for insolvency in April, has sold its Ekati mine, in Canada after receiving a solitary bid.

The buyers are part of The Washington Companies, a privately held conglomerate based in Montana, USA, that bought Dominion in 2017 for $1.2bn.

Toronto-based Dominion, the world’s third largest producer of rough diamonds by value, shut Ekati in March because of COVID-19.

The mine has been bought by Canadian Diamond Holdings, L.P. and CA Canadian Diamond Mines ULC in a $146m deal that is set be signed in November.

Dominion also holds a minority interest in the Diavik mine, but Rio Tinto, its joint venture partner, vetoed selling it. The two companies are currently locked in a legal battle over the management of the mine and production targets.

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Source Idexonline