Rio Tinto Asks Court to OK Sale of Partner's Diamonds In Canada Mine

Global miner Rio Tinto is seeking court approval to sell its partner’s share of diamonds from a mine in Canada’s Northwest Territories, a filing this week showed, hoping to recover around C$120 million plus legal fees and other costs, Reuters reported. Rio owns 60% of Diavik Diamond Mines Inc (DDMI) and says it is owed C$119.5 million plus about C$2.4 million in fees by junior partner Dominion Diamond ULC. Dominion holds a 40% stake in the northern mine, located about 300 kilometers (186 miles) north of the territorial capital of Yellowknife. Closely held Dominion sought creditor protection in April, saying it could not afford Rio’s cash calls amid coronavirus-related disruptions in the global diamond industry. Dominion said Oct. 9 a proposed deal to sell its nearby Ekati mine to an affiliate of its parent company The Washington Companies for $126 million fell apart. Read more

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