RAPAPORT… Rio Tinto has no plans to purchase Dominion Diamond Mines’ 40% share in the Diavik site, the Australian company said in a court filing.
The miner, which already owns 60% of Diavik and manages the site through subsidiary Diavik Diamond Mines (DDMI), also has no interest in buying Dominion’s Ekati mine, it noted.
“DDMI does not seek to interfere with or participate in the Ekati marketing process and does not seek to bid for Dominion’s interest in the Diavik mine or the Ekati mine,” Rio Tinto said in court documents filed with Canada’s Alberta Court of Queen’s Bench on May 28.
Dominion filed for insolvency protection in April amid a shutdown of operations due to the coronavirus pandemic. Last month, it signed a letter of intent to sell its assets to an affiliate of the Washington Companies, which purchased Dominion for $1.2 billion in 2017. That deal is subject to court approval, and will exclude Diavik if the miners cannot reach an agreement.
Image: The Diavik mine. (Dominion Diamond Mines)
Rio Tinto Not Interested in Buying Out Dominion
The Bottom Line
- Rio Tinto owns 60% of the Diavik mine and manages it through its subsidiary DDMI.
- Rio Tinto confirmed it will not bid for Dominion’s shares in Diavik or the Ekati mine.
- Dominion filed for insolvency protection in April and plans to sell assets to an affiliate of the Washington Companies, pending court approval.
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