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.
Canada’s Dominion Diamond Corporation (TSX, NYSE:DDC), the world’s largest diamond mining company by market cap, is formally applying to start expansion work at its recently acquired Ekati diamond mine, in Canada’s North West Territories.
The firm, which filed the application with the Wek’eezhii Land and Water Board on Wednesday, said it would extend the life of the mine by 10 to 20 years by developing two sub-lake deposits. Without the expansion, the mine would wind down operations by 2019.
One of them, the Jay pipe, is the largest known diamond deposit in North America, according to Dominion.
The move comes just over a month after Dominion applied to mine the smaller Lynx kimberlite pipe, located about 30 km from the existing main facility at Ekati.
Dominion acquire BHP Billiton’s 80% stake in the diamond mine six months ago.
