Miners Are Hurting: Dominion Diamonds Files For Protection

Rough Market
23/04/2020 08:18

In a press statement, Dominion Diamonds, operating the Ekati Diamond in the Northwest Territories has announced it has filed for insolvency protection under the Canadian Companies' Creditors Arrangement Act ("CCAA") granting the company protection from creditors. Dominion is said to have received and is considering a proposal from an affiliate of its current equity owner, The Washington Companies, to provide financing to pilot the company through the CCAA process. According to the statement, the impact of the COVID-19 pandemic is forcing the company to restructure, due to constrained activity on the rough markets despite consistent cost-cutting and a strong diamond inventory. Yesterday, Indian trade bodies called on its members for a moratorium on rough imports of 30 days starting May 15, a move that industry insiders believe will be desastrous for mining companies like Dominion Diamonds who need markets to open up in order to survive.