Dominion Diamond Corporation has begun to execute a plan to reduce operating and capital costs until operations at the process plant at the Ekati diamond mine can resume full capacity following a fire, according to a press release from the company. Repairs are expected to take approximately three months according to an assessment of the damage from the June 23rd fire which was limited to a small area, with no damage to the main structural components.
Plans include an adjustment of mining operations to pause mining at lower priority and lower value ore bodies, a deferral of non-essential sustaining capital, and a temporary layoff of affected staff across the company.
Dominion will continue to mine higher value material during the process plant shutdown. Ore mined during the process plant downtime will be stockpiled, with the intent to prioritize the processing of the highest value material when the plant resumes operations.
“After taking a full and careful assessment, 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. We would also like to thank our employees for their actions and commitment to resolving this situation quickly and efficiently,” says Dominion Diamond Corporation Chief Executive Officer Brendan Bell.
