The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Works out deal with banks that allows restart of diamond mine North of 60 Mining News – November 20, 2020
In anticipation of a restart of operations at the Ekati diamond mine, Dominion has put in motion plans to recall employees in order to have plenty of time to mobilize the workforce while adequately complying with COVID-19 isolation protocols.
Dominion also owns 40% interest in the Diavik diamond mine.
Dominion Diamond Mines Nov. 13 announced it will be recalling roughly 60 furloughed employees to prepare for an anticipated restart of its Ekati diamond mine in Northwest Territories.
In mid-March, Dominion suspended operations at Ekati. While the shuttering of the diamond mine was partially to safeguard employees and nearby communities from the spread of COVID-19, the company was also suffering financial hardship. In April, Dominion filed for insolvency protection under the Companies' Creditors Arrangement Act (CCAA) in Canada.
The world-renowned diamond mine was wound down to care and maintenance and a limited crew was keeping the facilities ready in the event that a decision was made to re-establish operations at the mine.
"As the spread of COVID-19 subsides and diamond markets reopen, Dominion plans to resume mining operations at the Ekati diamond mine and safely recall its furloughed workers," the company said on April 22.
While under CCAA protection, Dominion was negotiating a sale of the company to Washington Companies, which is linked to Dominions parent company. This sale, however, fell through last month.
The banks and other Dominion debtholders, however, are expected to reach an agreement to restructure Dominion's debt and fund the company.
In anticipation of the debt restructure and funding, Dominion has put in motion plans to recall employees in order to have plenty of time to mobilize the workforce while adequately complying with COVID-19 isolation protocols.
In connection with the employee recall, Dominion says it continues to take necessary precautions to maintain a safe and healthy work environment for its employees and the communities in the Northwest Territories.
In addition to full ownership of Ekati, Dominion Diamond Mines owns a 40% interest in the Diavik diamond mine. Rio Tinto owns the remaining 60% interest in Diavik.
Pursuant to an order from the CCAA Court, Dominion is protected from its creditors until December 15, 2020.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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