Rio Tinto’s Now the Sole Owner of Canada’s Diavik Diamond Mine
Rio Tinto is now the sole owner of Canada’s Diavik Diamond Mine, located in the Northwest Territories.
The company previously owned 60 percent of the mine and operated it. Dominion Diamond Mines owned the remaining 40 percent.
In April 2020, Dominion was granted insolvency protection under the Canadian Companies’ Creditors Arrangement Act.
Dominion sold its other diamond mine, the nearby Ekati, in February 2021 and now, the Court of Queen’s Bench of Alberta has approved the sale of its stake in Diavik to Rio Tinto.
Under the terms of the transaction, Rio Tinto has acquired all remaining assets held by Dominion, including unsold Diavik production and cash collateral held as security for the costs involved in closing the mine in the future.
Rio Tinto has, in return, released Dominion and its lenders from all outstanding liabilities and obligations.