08 Jul Dominion Diamond to expand Ekati mine
Canada’s Dominion Diamond (TSX:DDC) has decided to continue with a key expansion for its Northwest Territories-based Ekati mine, which would help keep the operation in production until 2033.
The decision to proceed with the expansion of the Jay pipe, positioned near Ekati’s already existing Misery pit, was based on positive feasibility study results.
The project includes building a dyke, draining part of a lake and digging an open pit. According to Dominion, it will be funded from existing cash and internal cash flow.
Ekati would have run out of its existing reserves by 2020 without this expansion.
In addition to the expansion, the company said it would aim to develop its core assets in the Lac de Gras region of the Northwest Territories and on buying back shares.
Dominion also anticipates to start construction on a fourth pipe at its Diavik mine, Canada’s largest and oldest diamond mine, co-owned with Rio Tinto (ASX:RIO).