Canadian diamond miner Stornoway on Friday announced the suspension of operations at its Renard mine, in Quebec, and said it had started a process of restructuring.
The company explained that the uncertainty of diamond prices over the short to medium term, coupled with a sudden drop in the price of the resource on world markets, had a major impact on its financial situation.
This was in part owing to the halt in the import of rough diamonds to India and by the global geopolitical climate, Stornoway said.
The company, which is owned by Osisko Gold Royalties and TF R&S Canada, placed the mine in care and maintenance to preserve the assets.
About 75 employees would be assigned to care-and-maintenance tasks.
Stornoway also began proceedings to place itself under the protection of the Companies’ Creditors Arrangement Act to enable it to restructure its business and turn around its financial situation.
Deloitte Restructuring would be appointed to act as monitor and supervise the restructuring.