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Dominion Halts Ekati Processing for Three Months

Jul 3, 2016 10:33 AM   By Rapaport News
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RAPAPORT... Dominion Diamond Corporation is shutting down its processing plant at the Ekati mine in Canada for three months following a fire that broke out June 23.

The blaze caused damage that was limited to a small area and did not affect the main structural components of the plant. Repairs are expected to take three months, after which the plant is expected to resume operations at full capacity, Dominion said.

Following the fire, Dominion will put lower-value ore mining on hold but continue to mine higher-value material.The company will stockpile that ore until processing resumes. Dominion plans to reduce capital costs by temporarily laying off certain staff and deferring non-essential sustaining capital.

The company will update its production and cost expectations as well as renew its fiscal-year guidance this week.

“We are taking the most prudent course of action which delivers limited, ongoing mining of higher-value ore, while also taking the necessary steps to make repairs and return to production and preserve capital,” said Brendan Bell, Dominion’s chief executive officer.
Tags: Canada, Dominion, Dominion Diamond Corporation, ekati, Ekati mine, mining, northwest territories, Production, Rapaport News
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