Dominion sees nearly million-carat impact owing to Ekati fire, 330 temporary layoffs
TORONTO (miningweekly.com) – TSX- and NYSE-listed Dominion Diamond Corp, Canada’s largest independent diamond producer, has announced that as a result of a June 23 fire at its Ekati mine, in the Northwest Territories, it now expected to produce about 900 000 ct less diamonds from the operation this year.
The fire had caused damage estimated at C$25-million to the degritting screen #3, including the associated rubber lined chutes, piping, pumps and motors, as well as electrical cables and instrumentation.
Dominion stated that most of these items were already on hand, while some others were currently being procured, and would be flown to site.
The company advised that it had started work with its insurance claims adjusters.
Dominion stated that it was reducing operating costs and deferring some capital costs during the plant downtime. Mining activities were expected to continue at the higher-value Misery openpit and Koala underground, and had been suspended at Pigeon and Lynx. The Misery and Koala material would be stockpiled, with the intention of processing a blend of the high-value Misery Main and Koala ore when the process plant restarts.
Dominion said it would defer nonessential sustaining capital projects until 2018, including mobile equipment rebuilds and the expansion of communication and automation systems.
A temporary layoff of about three months had already been implemented with about 330 temporary and permanent contractors and employees being affected.
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