Dominion Holds Off on Ekati Expansion

RAPAPORT... Dominion Diamond Mines has delayed a key extension to itsEkati mine for a second time as it assesses the project's profitability, according to reports. The miner originally postponed the Jay expansion in June2016 because it determined that the main Ekati deposit could yield more orethan it had expected. Following that decision, Dominion said it would beginwork on Jay in 2018, rather than its original target of 2017. However, the miner has pushed back the project again to study howit can increase Jay's profitability, CBC News reported Wednesday, citinga company official. Jay was due to add 84.6 million carats to Ekati's production, extendingits life span by approximately 11 years to beyond 2030, according to a 2015study. The miner projected an averageprice of $86 per carat for Jay's rough diamonds. Dominion has already received regulatory approvals for theproject, such as a water license and land-use permits. The company has put workon hold for this year, and hasn't stated when it will resume those operations, orhow the decision will affect Jay's time line, CBC News said. Productionwas due to begin in 2022,Dominion said two years ago. Ekati's total production was 5.2 million carats in the fiscal year that ended January 31, 2017. Other than Ekati, Dominion also owns 40% ofthe Diavik mine in Canada's Northwest Territories, with the remainder held byRio Tinto-owned subsidiary Diavik Diamond Mines. Last year, the asset produced7.5 million carats, with Dominion's share coming to approximately 3 millioncarats. In July, US-based Washington Companies bought Dominion forapproximately $1.2 billion. The miner did not respond to Rapaport News' request for comment.Image: Copyright (C) Dominion Diamond Mines