Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Dominion Diamond (TSX, NYSE: DDC), which put itself up for sale in March after receiving a $1.1 billion takeover bid from US billionaire Dennis Washington, said Tuesday it plans to request permits for an underground operation below the Misery open pit at its iconic Ekati mine, in Canada’s far north.
The project, called Misery Deep, will require an investment of $6 million in 2018, $69 million in 2019 and $19 million in 2020.
The company, the world’s third largest producer of rough diamonds by value, noted it expected to file such permit applications in the third quarter of this year.
The Misery Deep project would require an investment of $6 million in 2018, $69 million in 2019 and $19 million in 2020, Dominion said.
The company is also in the final stage of developing the much-anticipated Jay Project, which could extend the life of Ekati — Canada’s first diamond mine — by about by 10 years to 2033.
On Friday Dominion, which also owns 40% of the Diavik diamond mine in the Northwest Territories, reported strong sales guidance for next year and said it expected to spend between $115 million and $140 million to grow the company in fiscal 2018.
Comments
darrell white
What an awful name for a mine!