Mining & Energy
Reopening of the Ekati Mine: the union is confident
A purchase process announced on September 16th with the Washington Group Corporation offered a glimmer of hope to the 700 employees and the many small and medium-sized businesses to whom Dominion owes money, many of them in the NWT. Dominion’s motion to the court provides for a hearing to approve the transaction on Friday, December 11th.
Dominion Diamond Mines, owner of the Ekati diamond mine, announced on December 7th that it has entered into a purchase agreement with two bidders to acquire the majority of its shares. According to the company, the mine could resume operations as of January 29th, 2021, or even earlier.
However, the offer is subject to approval by the Commercial Court of the Court of Queen’s Bench of Alberta. Under the terms of the agreement, should the transaction proceed, an entity controlled by DDJ Capital Management and Brigade Capital Management would acquire substantially all of the shares of Dominion Diamond and assume its $70 million debt.
According to Todd Parsons, the union is hopeful that an early court decision will allow most of the mine’s employees to return to work in the coming months. We have every reason to believe that all of our members will be recalled,” he said. The employer is currently engaged in a process of gradually recalling employees to return to work at a time to be determined this year. This is great news for the employees, but also for the territory as a whole.”
The Ekati mine is reportedly in the process of recalling the approximately 300 employees currently laid off, for probable re-employment in the coming months, according to Todd Parsons, President of the Union of Northern Workers, told Radio Taïga.
Dominion’s motion to the court provides for a hearing to approve the transaction on Friday, December 11th.
Find more about the situation of Ekati Mine and the agreement of its owner Dominion DIamond Mines with two bidders to acquire the majority of its shares, and read the most important mining news of the day with the best Mining News App available for free in the Play Store.
Diavik excluded from the transaction
However, this purchase agreement does not include the Diavik diamond mine, in which Dominion Diamond holds 40% of the shares in a joint venture agreement with Rio Tinto. Unable to pay its share of operating costs since April 2020, Dominion Diamond had accumulated a debt of nearly $120 million at the mine last November.
In November, the Alberta court authorized the Diavik mine to put up for sale the portion of the diamonds that Dominion normally owes, which it has pledged as reimbursement. However, Dominion Diamond has appealed this decision.
At a standstill for almost eight months
Dominion Diamond Mining filed for creditor protection in the spring of 2020 due to the global drop in diamond prices. It had initially announced that it would undertake restructuring to resume operations at the Ekati mine.
A purchase process announced on September 16th with the Washington Group Corporation offered a glimmer of hope to the 700 employees and the many small and medium-sized businesses to whom Dominion owes money, many of them in the NWT. However, the transaction had to be halted on October 9th after failed negotiations between the purchaser and the insurance companies, which guaranteed the amount of security deposited with the GNWT for the remediation of the mine site.
(Featured image by MemoryCatcher via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Radio Taiga, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 22]
This week we're waking the dead as we go back to the metaverse baby. With Apple soon announcing its long-awaited...
Bullish on Bitcoin? – Blackrock CEO Warns of “Debt Ceiling Drama”
Many bitcoin and cryptocurrency investor advocates view BTC as a hedge against inflation and debt concerns, especially as central banks...
Docline Prepares a New Round of 6 Million for 2024
Docline maintains an agreement with Mapfre, with whom it offers digital health programs to the company's policyholders; with the Ballesol retirement...
Cedacri Prices New €275M Bond to Pay €50M Tax and €150M Extra Dividend
As stated in the Report to Cedacri's 2022 Annual Report, and as recalled in the release in which Moody's assigned...
Bierzo Aire Limpio Starts Crowdfunding to Support the Legal Defense of the Environment
The NGO holds an assembly that includes a state-wide meeting against waste incineration, debates on wind and solar macro-projects, and...
Crowdfunding6 days ago
Doorway and SeedBlink Sign a Partnership to Give More Investment Options to Investors
Cannabis2 weeks ago
Medical Cannabis Could Be the Future of Brain Cancer Treatment
Featured4 days ago
Consolidation of the Fintech Sector Reinforces Mastercard’s Commitment to the Sector
Biotech2 weeks ago
Qubiotech Raises €500,000 and Looks to Europe and America by 2024